In a recent installment of the NVCA’s "Meet a VC" series, the spotlight shone on Mike Moradi, co-founder and general partner of Cortado Ventures. Based in Oklahoma City, Cortado Ventures is carving a unique path in the venture capital landscape, focusing its investments on seed-stage frontier technology companies across the U.S. Midcontinent. The firm’s distinctive thesis is predicated on a profound belief: the most effective founders capable of transforming critical industries are often those who have spent years immersed within them. By strategically connecting their invaluable operational experience with essential capital, a robust customer base, and an expansive network of support, Cortado is actively working to decentralize American innovation, fostering its growth in regions historically overlooked by traditional venture hubs. This approach not only seeks to unearth untapped potential but also to redefine the geographical boundaries of technological advancement and economic development in the United States.
The Entrepreneurial Crucible: Mike Moradi’s Path to Venture Capital
Mike Moradi’s journey into venture capital is deeply rooted in his extensive and often challenging experiences as a founder. A serial entrepreneur, Moradi has founded and led six companies spanning technically complex sectors such as biopharmaceuticals and nanotechnology. His entrepreneurial odyssey began with a pivotal decision: leaving dental school to launch his inaugural company. That venture, however, did not succeed. Far from discouraging him, this initial failure served as a profound lesson in resilience and unwavering commitment. "The lesson was to keep pushing past every obstacle, to not be discouraged by hearing the word ‘no,’ and to stay the course," Moradi recounts, highlighting the formative impact of early setbacks on his professional ethos.
This foundational experience forged a tenacious spirit. His subsequent company flourished, culminating in its acquisition by a Fortune 100 corporation, a testament to his burgeoning acumen. Later, a San Francisco Bay Area venture also achieved a successful acquisition, but not before navigating a perilous period. Following an $18 million Series B financing round, the company teetered on the brink of collapse. This near-failure imparted another crucial lesson: while capital can indeed accelerate a company’s growth, speed is only advantageous when the business is moving in the correct strategic direction and is genuinely prepared for scale. Moradi distilled this insight into a cautionary maxim: "A high valuation and a full bank account will happily let you scale the wrong thing." This experience underscored the critical importance of disciplined growth and strategic alignment over mere capital infusion.
These varied experiences, encompassing both rapid successes and near-catastrophic failures, shaped Moradi’s holistic understanding of company building. Today, his personal mission is to extend the innovative spark traditionally associated with Silicon Valley to the burgeoning Midcontinent region. His approach to venture investing is meticulous, prioritizing the strategic sequencing and precise timing of capital deployment as much as the inherent technological merit of a company. He firmly believes that financing should empower founders to rigorously test assumptions, mitigate risks, and achieve meaningful milestones, rather than allowing a business to prematurely outgrow its proven capabilities. This philosophy marries entrepreneurial optimism with empirical evidence, stringent discipline, and a clear-eyed understanding of the next crucial validation point for a company.
In 2020, Moradi co-founded Cortado Ventures alongside a cadre of seasoned founders, CEOs, and operators. Their collective vision was to construct the kind of venture firm they themselves had wished existed during their entrepreneurial careers: a firm that genuinely comprehended the multifaceted decisions founders confront daily and could contribute far beyond the initial capital injection. This "built by founders, for founders" ethos lies at the core of Cortado’s operational identity, distinguishing it within the venture capital landscape.
The Midcontinent Advantage: A Strategic Nexus for Frontier Technology
Cortado Ventures’ investment thesis is intrinsically linked to the inherent strengths and unique challenges of the U.S. Midcontinent. This expansive region is not merely a geographical designation; it is a vital economic engine, home to a diverse array of critical industries facing immense pressure to innovate and evolve. Sectors such as energy (including the rapidly expanding energy transition technologies), aerospace and defense, healthcare, advanced manufacturing, mobility, and logistics operate within complex physical environments, are constrained by established supply chains, and serve demanding customer relationships. Transforming these bedrock industries requires more than just compelling software; it demands a profound, nuanced understanding of their intricate operational mechanics.
Cortado actively seeks out experienced technical founders who possess this deep, insider understanding. These individuals are often those who have spent years embedded within a hospital, factory floor, laboratory, energy corporation, aerospace program, or logistics network. Their direct experience allows them to identify persistent problems and envision novel, disruptive solutions. This invaluable background provides them with instant credibility among potential customers, sharp insights into practical implementation challenges, and a wealth of specialized knowledge that would be exceedingly difficult to cultivate from an external perspective.
The Midcontinent’s geography itself constitutes a significant competitive advantage. The region offers unparalleled proximity to vital industries and a robust pool of potential customers, fostering organic growth and market validation. It boasts a technically skilled workforce, often trained by strong research institutions and local universities. Furthermore, the availability of complementary public funding initiatives and significantly lower company-building costs compared to coastal tech hubs provides a fertile ground for startups to establish and scale efficiently. This combination of factors creates an environment where innovative ideas can take root and flourish without the prohibitive overheads often associated with Silicon Valley or other major tech centers.
Cortado’s diverse portfolio vividly illustrates the breadth of innovation emerging from this dynamic environment. Its companies are leveraging cutting-edge technologies across a spectrum of applications, including advanced space communications, industrial safety solutions, critical infrastructure cybersecurity, sophisticated manufacturing processes, healthcare technology, sustainable energy solutions, and next-generation mobility platforms. The firm’s strategy is not merely based on the premise that Midcontinent founders deserve investment because they have historically attracted less venture capital. Instead, it is firmly built on the conviction that direct proximity to "hard problems" — the complex, real-world challenges faced by established industries — is a powerful catalyst for producing truly differentiated companies and generating superior financial returns. As Moradi succinctly puts it, "Talent is not concentrated anywhere in particular. Capital and networks have just been slower to distribute than talent has." For Moradi, expanding the geographic reach of venture capital is not simply about discovering more founders; it is fundamentally about uncovering new sources of profound insight and groundbreaking innovation that traditional, geographically concentrated networks may have consistently overlooked.
Building an Ecosystem: Beyond Capital, Towards Community
When Cortado Ventures first launched, Mike Moradi initially believed that the primary constraint hindering the growth of a nascent venture ecosystem in the Midcontinent was a fundamental shortage of capital. The firm successfully demonstrated that promising companies could indeed be identified and funded within the region, thereby proving a critical point. However, as Cortado matured and expanded its operations, Moradi’s perspective on the multifaceted 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 candidly admits.
This realization underscored a broader truth: founders require a far more expansive support system than just financial backing. They need experienced operators who can provide invaluable guidance, helping them sidestep preventable pitfalls and accelerate their growth trajectories. They need pioneering customers willing to adopt and champion unproven technologies, providing crucial early validation. They need patient investors prepared to support a company through the often-challenging periods between significant milestones. Crucially, they need a vibrant community where vital relationships can naturally form and flourish. As Moradi emphasizes, "Money can accelerate a company. It cannot stand in for experience."
This comprehensive understanding profoundly shaped Cortado’s role within the broader Midcontinent ecosystem. The firm proactively works to forge connections among founders, funders, academic institutions, established corporations, policymakers, and technical experts. Unlike traditional models that might reserve such relationships exclusively for their own portfolio companies, Cortado extends this network broadly, fostering a collaborative environment that benefits the entire regional entrepreneurial community.
A prime example of this commitment is Cortado’s annual Midcontinent Venture Capital Summit, which convenes investors, limited partners, founders, and ecosystem leaders from across the country. This event serves as a critical nexus for networking, knowledge sharing, and deal flow generation. Furthermore, Cortado actively collaborates with regional entrepreneurship organizations and The Verge, an Oklahoma City-based incubator and accelerator that provides essential company-building resources, specialized programming, and crucial capital connections. Each of these interactions, whether a formal summit or an informal mentorship session, can be the catalyst for a founder finding a key customer, a pivotal adviser, a talented employee, a strategic collaborator, or a vital investor. Collectively, these relationships gradually construct the essential infrastructure that enables a greater number of companies to successfully launch, scale, and thrive within the region. For Moradi, this is where venture capital’s true impact begins to transcend the boundaries of a single investment, evolving into a force for regional economic transformation. A stronger, more interconnected ecosystem provides more entrepreneurs with a viable pathway to company formation, simultaneously creating an abundance of opportunities for capital, talent, and innovation to converge.
Investment Philosophy: Conviction Without False Certainty
In the realm of early-stage venture capital, operating with incomplete information is not an anomaly; it is the fundamental nature of the business. As Moradi aptly states, "Incomplete data is my job description." Rather than futilely attempting to eliminate uncertainty entirely, his approach is to strategically dissect assumptions, differentiating those that can be immediately tested from those that will only resolve over an extended period. He meticulously identifies the critical conditions that must hold true for a venture to succeed, rigorously considers how these conditions could be disproven, and diligently evaluates the precise cost associated with achieving the next meaningful milestone.
Moradi’s strongest convictions typically coalesce around three core pillars: the strength and vision of the founding team, the clarity and urgency of the customer problem being addressed, and the company’s demonstrable rate of progress. He exercises greater caution, however, 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 disciplined approach becomes particularly vital when a financing round is moving at an accelerated pace. The allure of a charismatic founder and the pressure of a competitive process can often create an environment that pushes investors to make decisions before central investment assumptions have been thoroughly vetted. "A hard deadline is exactly when people stop asking uncomfortable questions," Moradi observes, highlighting a common pitfall in high-pressure deal-making.
When circumstances demand it, Cortado is prepared to deliberately slow down the process, integrating independent scientific or technical experts into their evaluation. This additional layer of diligence serves a dual purpose: it can either fortify the firm’s conviction in the investment or, crucially, reveal a compelling reason to withdraw. Significantly, Cortado’s most enduring founder relationships often originate from this very scrutiny. This rigorous process, far from being an impediment, sharpens strategic thinking and identifies potential risks at a stage where they can still be effectively addressed. However, slowing down the decision-making process does not equate to a sluggish response; once a decision is made, action is swift and decisive.
Moradi applies the same meticulous discipline to valuation. He firmly believes that "a sensible entry price is a form of protection for the founder, employees, and investors alike." While an aggressive valuation might initially feel like an immediate victory for a startup, if the company’s subsequent progress fails to meet the elevated expectations embedded in that number, the consequences can be severe. Such misalignments can adversely affect founder ownership, dilute employee equity, constrain future fundraising options, and ultimately compromise the company’s crucial ability to adapt to unforeseen market shifts. This dynamic, Moradi notes, is a double-edged sword: while VCs must be prudent, they can also inadvertently stifle a company’s potential through overly harsh terms. A delicate balance is key. "The right number buys you options for years. In boom times, people forget that financial crises happen," Moradi cautions, underscoring the long-term strategic advantage of prudent valuation. For Cortado, this discipline is not indicative of a lack of belief in a founder’s ambition; rather, it is a strategic imperative designed to provide an ambitious company with the essential flexibility and crucial time it needs to ultimately achieve success.
Actionable Support: Showing Up With Work Already Done
The Cortado Ventures team brings a wealth of hands-on operating experience to the table, having built, scaled, and successfully exited companies across many of the very industries in which the firm now invests. This deep, practical background profoundly shapes how Cortado supports its founders, particularly when unforeseen challenges arise, plans pivot, or difficult decisions become unavoidable. Mike Moradi encapsulates their approach to meaningful support in two concise words: "Speed and specificity."
He elaborates on this philosophy with practical guidance: "Answer in hours rather than days and show up with work already done instead of advice. Better yet, pick up the phone." This ethos translates into tangible assistance, which might involve meticulously rebuilding a financial model to navigate a challenging period, leveraging their extensive network to make a critical customer introduction, actively recruiting a senior executive to fill a strategic gap, or taking direct responsibility for facilitating a sensitive and often difficult part of a board conversation. Crucially, it also entails the willingness to articulate uncomfortable truths when a company’s runway is shortening, or its fundamental strategy requires a radical overhaul.
Moradi vividly recalls his own experiences as a founder in such high-stakes meetings. "What helped was someone who lowered the temperature, told the truth to me and the board, and followed up after the meeting," he reflects, emphasizing the profound impact of empathetic, direct, and consistent support during moments of crisis. As Cortado Ventures and the surrounding Midcontinent ecosystem have matured, the sophistication of the firm’s founder support has also evolved significantly. Portfolio companies now have access to a rich tapestry of resources, including experienced operating executives, specialized industry experts, dedicated advisers, prospective customers, skilled coaches, a broad network of co-investors, and a community of peer founders within the firm’s expansive network.
The needs of founders in the region have similarly progressed. In earlier days, when capital was a scarce resource, Cortado’s direct investment and its ability to attract additional co-investors into a round were particularly valuable. Today, while capital remains important, founders increasingly seek critical customer access, top-tier senior talent, specialized technical expertise, and candid guidance from individuals willing to offer honest and constructive feedback. Cortado’s role is not to usurp control from the entrepreneur; rather, it is to empower them. Sometimes, the most valuable contribution an investor can make is discerning precisely when not to intervene. "Other times," Moradi concludes, "being helpful means staying out of the way." This nuanced understanding of when to lead and when to follow is a hallmark of Cortado’s founder-centric approach.
Building What Outlasts a Fund: A Vision for Enduring Impact
Mike Moradi firmly believes that a venture firm’s responsibility extends far beyond the immediate financial performance of its own portfolio. His vision is one of enduring legacy: "We must build things that outlast a single fund." For Cortado Ventures, this expansive commitment translates into a relentless effort to strengthen the foundational connections among founders, funders, universities, corporations, and policymakers across the Midcontinent. Furthermore, it actively involves fostering the formation and growth of more investment firms within the region, recognizing that a diverse and robust investment community is vital for long-term prosperity. "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 potential capital sources and specialized expertise. It simultaneously creates more opportunities for investors to collaborate and participate in promising companies, fostering a healthier, more competitive environment. Over time, this collective effort can establish a more durable and efficient pathway, linking regional innovation directly to national capital markets.
Moradi is quick to emphasize that this commitment to ecosystem building does not in any way diminish a firm’s primary fiduciary responsibility to its limited partners. Having served as a trustee and audit committee member for a state retirement system, he possesses a deep appreciation for the importance of directness and transparency regarding investment risk, duration, and potential losses. "Ecosystem building matters, and it does not excuse any of us from being disciplined fiduciaries first," he states, underscoring the critical balance between community development and financial stewardship.
Moradi also identifies the National Venture Capital Association (NVCA) as an essential component of the connective infrastructure that supports firms and founders nationwide. He views policy areas such as capital formation, research commercialization, immigration reform, government procurement, tax treatment, and securities regulations not as abstract political issues, but as concrete factors that profoundly influence the operational realities of the venture industry. These policies directly impact an emerging manager’s ability to raise a fund, a startup’s capacity to attract top talent, and a new technology’s potential to reach the customers and institutions that desperately 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 affirms. Participation in the NVCA also affords Cortado a crucial platform to introduce a Midcontinent perspective into national dialogues concerning innovation, capital formation, and the future trajectory of the venture industry.
Expanding the Map of American Innovation
Mike Moradi hopes that the narrative of Cortado Ventures can serve as a compelling illustration of the immense breadth and diversity inherent within American venture capital. While the industry’s largest, most prominent firms often garner the greatest media attention, a significant and increasingly vital portion of the venture ecosystem comprises smaller, specialized investors. These firms are diligently writing early checks into highly specific niches—be they industrial, geographic, demographic, or otherwise—that are often overlooked by larger, more generalized funds. "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 insightfully notes, demystifying the often-glamorized image of venture capital.
These specialized firms play an indispensable role in the innovation lifecycle. They are adept at identifying promising founders long before their target markets become obvious to the mainstream. They excel at connecting highly specialized knowledge with essential capital, providing a critical bridge for deep tech and frontier innovation. Crucially, they are instrumental in guiding companies through the notoriously difficult period that spans from a promising idea to a sustainable, viable business. "The hardest work happens after the money moves," Moradi emphasizes, highlighting the intensive, hands-on support required for early-stage ventures.
The advent of new technologies is rendering this foundational work even more consequential. Rapid advancements in artificial intelligence, automation, advanced manufacturing techniques, energy innovation, biotechnology, and space technology are dramatically reducing the cost and complexity of pursuing ambitious, often groundbreaking ideas. Consequently, small, agile teams can now undertake opportunities that once demanded the vast resources of a large corporation or a national program. Many of these innovative teams are emerging precisely in places that are intimately connected to the complex problems they are striving to solve, rather than being confined to established tech epicenters.
This phenomenon represents the broader, transformative impact of strategically expanding venture capital across America. When investors consciously look beyond their familiar networks and engage with founders directly where critical industries operate, they facilitate the conversion of more ideas into thriving companies, enable more nascent technologies to reach the market, and empower a greater number of communities to actively participate in and benefit from the country’s innovation economy. For Mike Moradi, the ultimate source of optimism resides with the audacious founders who are courageously attempting what others deem impossible. "Never forget that we’re here for them. When we do this right, everyone, including humanity, wins," he concludes, articulating a vision for venture capital that extends beyond financial returns to encompass profound societal impact. Cortado Ventures stands as a shining example of this forward-thinking approach, and the NVCA is proud to include them in its distinguished membership, further promoting the diversification and decentralization of American innovation. To delve deeper into the firm’s groundbreaking work, visit cortado.ventures.
