The venture capital landscape, traditionally concentrated in coastal technology hubs, is undergoing a significant transformation, with firms like Cortado Ventures emerging as pivotal players in expanding the map of American innovation. At the forefront of this movement is Mike Moradi, co-founder and general partner of the Oklahoma City-based firm, whose unique background as a six-time founder underpins Cortado’s thesis: that the most impactful transformations in critical industries will come from founders who have lived and breathed those sectors. Through its strategic investments in seed-stage frontier technology companies across the U.S. Midcontinent, Cortado Ventures is not merely deploying capital; it is actively cultivating an ecosystem designed to unlock untapped potential and foster resilient, evidence-driven growth.
A Founder’s Journey: Lessons Forged in the Crucible of Entrepreneurship
Moradi’s path to venture capital is a testament to the adage that experience is the best teacher. His entrepreneurial journey began unconventionally, diverging from dental school to launch his first company. While that initial venture ultimately failed, it instilled in him an indomitable spirit and a crucial lesson in perseverance. "The lesson was to keep pushing past every obstacle, to not be discouraged by hearing the word ‘no,’ and to stay the course," Moradi reflects, highlighting the resilience required to navigate the volatile world of startups. This early setback, rather than dampening his ambition, fortified his resolve, setting the stage for a career marked by both triumphs and hard-won wisdom across diverse and technically complex industries like biopharmaceuticals and nanotechnology.
Subsequent ventures saw rapid growth and successful acquisitions by Fortune 100 companies. However, a later San Francisco Bay Area startup offered a different, equally profound lesson. After securing an $18 million Series B financing round, the company teetered on the brink of failure. This near-collapse underscored a critical insight: capital, while essential for acceleration, can also mask underlying issues if a company scales prematurely or in the wrong direction. "A high valuation and a full bank account will happily let you scale the wrong thing," Moradi notes, emphasizing the danger of conflating speed with sustainable progress. This experience shaped his conviction that financing should serve as a tool to test assumptions, mitigate risk, and achieve verifiable milestones, rather than enabling growth ahead of proven market fit. His mission today, therefore, is to infuse the Midcontinent’s entrepreneurial spirit with a blend of optimism and rigorous discipline, ensuring that capital deployment is meticulously timed and sequenced to support foundational strength.
This philosophy culminated in the launch of Cortado Ventures in 2020. Moradi, alongside a team of seasoned founders, CEOs, and operators, envisioned a firm that could offer more than just financial backing. They aimed to create the kind of supportive, understanding partner they wished they had encountered during their own entrepreneurial endeavors – a firm deeply attuned to the challenges founders face and capable of contributing expertise far beyond the initial investment check.
The Midcontinent Advantage: Proximity to Hard Problems
Cortado Ventures’ investment thesis is predicated on a profound understanding of the Midcontinent’s strategic value. This expansive region, often overlooked by traditional venture capital, is a crucible for industries under immense pressure to innovate and evolve. Sectors such as energy, aerospace and defense, healthcare, manufacturing, mobility, and logistics are deeply embedded here, operating within complex physical environments, intricate supply chains, and demanding customer ecosystems. Transforming these critical industries requires more than just novel software; it demands an intimate, granular understanding of their operational realities.
Cortado actively seeks out technical founders who possess this invaluable domain expertise—individuals who have spent years within hospitals, factories, laboratories, energy companies, aerospace programs, or logistics networks. Their firsthand experience grants them unparalleled credibility with customers, crucial insights into implementation hurdles, and a depth of knowledge that would be nearly impossible to cultivate from an external vantage point.
The geographical positioning itself confers a distinct competitive advantage. The Midcontinent offers unparalleled proximity to these vital industries and their potential customers. It boasts a technically skilled workforce, bolstered by strong research institutions and universities. Furthermore, the region often provides access to complementary public funding initiatives and significantly lower company-building costs compared to coastal hubs. For instance, data from sources like the NVCA and PitchBook consistently show that while major tech hubs like California, New York, and Massachusetts continue to dominate venture capital inflows, states in the Midcontinent have seen a steady, albeit smaller, increase in deal activity and capital raised over the past five years. This trend, though modest in scale, signifies a growing recognition of the region’s burgeoning innovation ecosystem and its cost-effective operational environment.
Cortado’s diverse portfolio reflects the breadth of innovation emerging from this environment, encompassing companies applying cutting-edge technologies across space communications, industrial safety, critical infrastructure cybersecurity, advanced manufacturing, healthcare, energy, and mobility. The firm’s strategy is not rooted in the notion that Midcontinent founders deserve investment merely because they have historically been underserved by venture capital. Instead, it is built on the firm conviction that direct engagement with deeply entrenched problems in these industries will yield differentiated companies and, consequently, robust financial returns. "Talent is not concentrated anywhere in particular. Capital and networks have just been slower to distribute than talent has," Moradi asserts, articulating a core belief that underpins Cortado’s mission to decentralize innovation. By expanding the geographic reach of venture capital, Cortado aims not only to discover more founders but also to uncover unique sources of insight and innovation that traditional networks have historically overlooked.
Beyond Capital: Cultivating a Thriving Ecosystem
When Cortado Ventures first launched, Moradi initially believed that the primary impediment to a nascent venture ecosystem was a scarcity of capital. The firm’s early successes in identifying and funding promising regional companies helped to validate the viability of this hypothesis. However, as Cortado expanded its operations and deepened its engagement with the entrepreneurial community, Moradi’s perspective on the needs of founders evolved significantly. "Five years ago, I would have said the limiting reagent in a young ecosystem was capital. Capital turned out to be necessary, and also nowhere close to sufficient," he reflects, underscoring a crucial realization.
Founders require a multifaceted support system that extends far beyond mere financial injection. This includes access to experienced operators who can help them circumvent preventable pitfalls, receptive customers willing to pilot unproven technologies, patient investors prepared to bridge funding gaps between milestones, and a vibrant community where critical relationships can organically form. As Moradi succinctly puts it, "Money can accelerate a company. It cannot stand in for experience."
This understanding has profoundly shaped Cortado’s expansive role within the broader Midcontinent ecosystem. Rather than hoarding valuable relationships exclusively for its own portfolio companies, the firm actively works to forge connections among founders, funders, universities, corporations, and policymakers. A prime example of this commitment is its annual Midcontinent Venture Capital Summit, which convenes investors, limited partners, founders, and ecosystem leaders from across the nation, fostering collaboration and knowledge exchange. Additionally, Cortado collaborates closely with regional entrepreneurship organizations and The Verge, an Oklahoma City-based incubator and accelerator that provides vital company-building resources, programming, and crucial capital connections. Each of these interactions serves as a potential catalyst, helping a founder secure a customer, identify an adviser, recruit a key employee, find a collaborator, or attract additional investment. Collectively, these efforts construct the essential infrastructure that enables more companies to not only launch but also to scale successfully. For Moradi, this collaborative approach is where venture capital’s true impact transcends individual investments, fostering a stronger ecosystem that provides more entrepreneurs with viable pathways to company formation and creates more opportunities for capital, talent, and innovation to converge.
Conviction Without False Certainty: The Discipline of Early-Stage Investment
Investing in early-stage companies inherently involves navigating a landscape of incomplete information. Moradi candidly acknowledges this reality, stating, "Incomplete data is my job description." Rather than attempting to eliminate uncertainty, his approach involves a disciplined methodology: he meticulously differentiates between assumptions that can be immediately tested and those that will only resolve over time. This involves identifying the fundamental conditions that must hold true, rigorously considering how these conditions could be disproven, and meticulously evaluating the cost associated with achieving the next meaningful milestone.
Moradi’s strongest convictions typically center on the founding team’s capabilities, the authenticity of the customer problem being addressed, and the company’s demonstrable rate of progress. He exercises greater caution when it comes to predicting the precise timing of an emerging market or foretelling the exact path a company might eventually take to an exit. This discipline becomes particularly critical during rapidly moving financing rounds, where the allure of a compelling founder and a competitive process can generate intense pressure to make a swift decision before central investment assumptions have been thoroughly vetted. "A hard deadline is exactly when people stop asking uncomfortable questions," Moradi warns. In such instances, Cortado is prepared to deliberately slow down the process, often engaging independent scientific or technical experts to provide an unbiased evaluation. This additional diligence, while potentially extending the timeline, can either fortify the firm’s conviction or reveal crucial reasons to step away from an investment. Paradoxically, many of Cortado’s most robust founder relationships have blossomed from this very scrutiny, as it sharpens strategic thinking and identifies risks proactively, allowing for timely mitigation. However, slowing the decision-making process does not equate to a delayed response; once a decision is made, action is swift and decisive.
Moradi applies the same rigorous discipline to valuation. While an aggressive valuation might feel like an immediate victory for a founder, he emphasizes its potential long-term pitfalls. "A sensible entry price is a form of protection for the founder, employees, and investors alike," he asserts. If a company’s progress fails to meet the lofty expectations tied to an inflated valuation, the repercussions can be severe, impacting founder ownership, diluting employee equity, constraining future fundraising options, and hindering the company’s crucial ability to adapt. This dynamic, however, is a double-edged sword; venture capitalists must also avoid overly punitive valuations that can stifle a company’s growth. Balance, Moradi stresses, is paramount. "The right number buys you options for years. In boom times, people forget that financial crises happen," he cautions, advocating for a valuation strategy that provides companies with the necessary runway and flexibility to navigate unpredictable market conditions. For Cortado, this discipline is not indicative of a lack of belief in a founder’s ambition; rather, it is a strategic approach designed to equip ambitious companies with the adaptability and time essential for long-term success.
Meaningful Support: Speed, Specificity, and Strategic Non-Intervention
Cortado Ventures’ operational experience is a cornerstone of its founder support model. The firm’s team has directly built, scaled, and successfully exited companies across many of the very industries in which it now invests. This deep, firsthand knowledge profoundly shapes how Cortado supports founders, particularly when plans deviate or difficult decisions loom. Moradi encapsulates meaningful support with two words: "Speed and specificity." He elaborates, "Answer in hours rather than days and show up with work already done instead of advice. Better yet, pick up the phone."
This commitment translates into tangible actions: rebuilding a financial model, facilitating a critical customer introduction, assisting in the recruitment of a senior executive, or adeptly navigating a challenging board conversation. It also encompasses the courage to deliver uncomfortable truths when a company’s runway is shrinking or its strategic direction requires a fundamental shift. Moradi vividly recalls being the founder on the receiving end of such conversations. "What helped was someone who lowered the temperature, told the truth to me and the board, and followed up after the meeting," he recounts, emphasizing the human element in investor-founder relationships.
As Cortado and the broader Midcontinent ecosystem have matured, the firm’s founder support has evolved into a sophisticated network. Portfolio companies can now leverage the expertise of operating executives, industry specialists, external advisers, prospective customers, coaches, fellow investors, and other founders within Cortado’s extensive network. Concurrently, the needs of founders have also become more nuanced. While capital scarcity once made Cortado’s investment and its ability to attract additional investors particularly valuable, today, founders increasingly seek customer access, senior talent acquisition, specialized technical expertise, and candid, honest guidance. Crucially, the firm’s role is never to usurp control from the entrepreneur. Sometimes, the most valuable contribution an investor can make is recognizing when to refrain from intervention. "Other times," Moradi concludes, "being helpful means staying out of the way."
Building Legacies Beyond a Single Fund
Moradi holds a conviction that a venture firm’s responsibilities extend far beyond the confines of its own portfolio. "We must build things that outlast a single fund," he declares. For Cortado, this translates into a proactive strategy of strengthening connections among founders, funders, universities, corporations, and policymakers across the Midcontinent. It also entails actively fostering the formation and growth of other investment firms within the region. "This is not a zero-sum game," Moradi asserts. "We want to enable a dozen other firms in our geography, and bring in outside funds for later rounds. We need to create scalable structures where everyone can win."
A larger, more interconnected investment community offers founders a greater diversity of capital sources and expertise. It cultivates more opportunities for investors to collaborate and co-invest in promising companies, thereby establishing a more durable conduit between regional innovation and national capital markets over time. This ecosystem-building mandate, however, does not diminish a firm’s fundamental responsibility to its limited partners. Moradi, having served as a trustee and audit committee member for a state retirement system, deeply understands the paramount importance of being forthright about investment risk, duration, and potential losses. "Ecosystem building matters, and it does not excuse any of us from being disciplined fiduciaries first," he emphasizes, underscoring the dual imperative of fostering growth while maintaining financial prudence.
Moradi also recognizes the National Venture Capital Association (NVCA) as a critical component of the connective infrastructure that supports firms and founders nationwide. Policy issues such as capital formation, research commercialization, immigration, government procurement, tax treatment, and securities regulations are not abstract concepts; they profoundly influence an emerging manager’s ability to raise a fund, a startup’s capacity to attract talent, and a new technology’s potential to reach the customers and institutions that need it. "NVCA helps each of us make policy concrete and stay on top of the issues that matter in D.C. and beyond," Moradi states. Furthermore, Cortado’s active participation in NVCA provides a vital platform to inject a Midcontinent perspective into national dialogues concerning innovation, capital formation, and the future trajectory of the venture industry.
Expanding the Map of American Innovation
Moradi hopes that Cortado’s narrative can serve as a powerful testament to the true breadth and diversity of American venture capital. While the industry’s largest, most prominent firms often capture the lion’s share of attention, the vast majority of venture capital activity is driven by smaller, specialized investors. These firms write early checks into niche sectors, specific technologies, underserved communities, and distinct geographic regions. "Most of VC looks nothing like the caricature. The bulk of the industry is small firms writing early checks into some niche, be it industrial, geographic, demographic, or otherwise. And a VC firm is also a startup until fund 3 or 4," Moradi explains, demystifying the industry’s often-misunderstood structure.
These specialized firms play an indispensable role in identifying founders before their markets become obvious, connecting specialized knowledge with crucial capital, and guiding companies through the arduous period between a promising idea and a sustainable business. "The hardest work happens after the money moves," Moradi stresses. The advent of new technologies, particularly artificial intelligence, automation, advanced manufacturing, energy innovation, biotechnology, and space technology, is dramatically lowering the cost of pursuing ambitious ideas. This paradigm shift empowers small, agile teams to pursue opportunities that once demanded the colossal resources of large corporations or national programs. Many of these innovative teams, Moradi predicts, will emerge in locations intimately connected to the very problems they are striving to solve.
This decentralization of venture capital is more than just an economic trend; it represents a profound expansion of American innovation. When investors consciously look beyond familiar networks and engage with founders in regions where critical industries operate, they catalyze a virtuous cycle: more ideas evolve into viable companies, more groundbreaking technologies reach the market, and more communities actively participate in and benefit from the nation’s innovation economy. For Mike Moradi, the enduring optimism lies with the founders themselves – those audacious individuals who dare to attempt what others deem impossible. "Never forget that we’re here for them. When we do this right, everyone, including humanity, wins," he concludes, encapsulating the profound potential of a more inclusive and impactful venture capital ecosystem. Cortado Ventures, as a proud member of the NVCA, continues to champion this vision, inviting further exploration of its pioneering work at cortado.ventures.
