The National Venture Capital Association’s (NVCA) "Meet a VC" series recently spotlighted Mike Moradi, co-founder and general partner of Cortado Ventures, an Oklahoma City-based firm making significant strides in seed-stage frontier technology investments across the U.S. Midcontinent. Cortado Ventures’ distinct thesis is rooted in the conviction that the most transformative founders are those with deep, often years-long, operational experience within critical industries. By strategically coupling this invaluable experience with essential capital, customer access, and a robust support network, Cortado is actively reshaping the landscape of American innovation, demonstrating that groundbreaking ventures can thrive far beyond traditional tech hubs.
A Founder’s Journey Forged in Resilience and Insight
Mike Moradi’s path to venture capital is a testament to the profound lessons gleaned from the entrepreneurial trenches. A six-time founder himself, Moradi brings a rare blend of ambition and hard-won wisdom to his role. His journey into company building began unconventionally, pivoting from dental school to launch his first venture. This initial foray, which ultimately failed, instilled in him a foundational lesson: the imperative to persist despite setbacks and to maintain unwavering commitment when faced with skepticism. "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, underscoring the resilience that defines successful entrepreneurs.
His subsequent ventures showcased a trajectory of rapid growth and strategic exits. One company quickly scaled to acquisition by a Fortune 100 entity, validating his entrepreneurial instincts. However, another significant experience in the San Francisco Bay Area offered a different, equally critical, lesson. After securing an $18 million Series B financing round, the company teetered on the brink of failure before ultimately being acquired. This near-catastrophe illuminated the double-edged sword of capital: while it can accelerate progress, speed without direction or readiness to scale can be detrimental. Moradi candidly notes, "A high valuation and a full bank account will happily let you scale the wrong thing." This pivotal experience cemented his belief in pairing entrepreneurial optimism with rigorous evidence, disciplined execution, and a clear understanding of what a company truly needs to prove next. His mission today is to infuse the entrepreneurial "spark" of Silicon Valley with the grounded discipline of the Midcontinent, emphasizing the critical timing and sequencing of capital deployment to test assumptions, mitigate risk, and achieve meaningful milestones without premature over-scaling.
Cortado Ventures: Cultivating Innovation in the Midcontinent
Established in 2020, Cortado Ventures emerged from a collective vision shared by Moradi and a team of seasoned founders, CEOs, and operators. Their objective was to build the kind of venture firm they themselves wished had existed during their entrepreneurial careers: one that genuinely understood the complex decisions founders face and could provide value far beyond the initial financial injection. This founder-centric approach is woven into the very fabric of Cortado’s operations.
Cortado’s strategic focus on the U.S. Midcontinent is not merely a geographical preference but a deliberate competitive advantage. This region is a hotbed for critical industries undergoing immense pressure to innovate and evolve, including energy, aerospace and defense, healthcare, manufacturing, mobility, and logistics. These sectors operate within intricate physical environments, established supply chains, and demanding customer relationships, necessitating solutions that go beyond mere software applications. True transformation, Cortado posits, demands a profound, insider’s understanding of industry mechanics.
The firm actively seeks out technical founders who possess this deep industry knowledge—individuals who have spent years immersed in hospitals, factories, laboratories, energy companies, aerospace programs, or logistics networks, ultimately identifying persistent problems and conceiving novel solutions. Their lived experience grants them unparalleled credibility with customers, crucial insight into implementation challenges, and a knowledge base that is exceedingly difficult to cultivate from an external perspective.
The Midcontinent itself provides a fertile ground for these ventures. It offers immediate proximity to critical industries and potential customers, a skilled technical workforce often trained by regional universities and vocational programs, robust research institutions, complementary public funding initiatives, and significantly lower company-building costs compared to coastal tech hubs. This confluence of factors creates a unique ecosystem where innovative ideas can be developed and scaled efficiently. Cortado’s diverse portfolio exemplifies this environment, featuring companies leveraging cutting-edge technologies across space communications, industrial safety, critical infrastructure cybersecurity, advanced manufacturing, healthcare, energy, and mobility.
Cortado’s strategy is not predicated on the idea of investing in Midcontinent founders simply because they have historically been overlooked by venture capital. Instead, it is built on the firm conviction that proximity to hard, real-world problems inherently produces differentiated companies and, consequently, strong financial returns. As Moradi articulates, "Talent is not concentrated anywhere in particular. Capital and networks have just been slower to distribute than talent has." For Moradi and Cortado, expanding the geographic reach of venture capital is not just about democratizing access; it’s about uncovering invaluable sources of insight and innovation that traditional networks have historically failed to tap into, thereby enriching the entire national innovation landscape.
Evolving Beyond Capital: Building a Comprehensive Ecosystem
Initially, Moradi believed that the primary constraint facing nascent venture ecosystems, particularly in the Midcontinent, was a scarcity of capital. Cortado’s early success in identifying and funding promising regional companies proved that such ventures existed. However, as the firm matured, Moradi’s understanding of founders’ needs broadened 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 observed.
Founders require a multifaceted support system that extends far beyond a check. This includes experienced operators who can guide them away from preventable mistakes, early-adopter customers willing to pilot unproven technologies, patient investors prepared to support a company through various milestones, and a vibrant community where crucial relationships can organically form. As Moradi succinctly states, "Money can accelerate a company. It cannot stand in for experience."
This realization profoundly shaped Cortado’s role within the broader Midcontinent ecosystem. The firm actively works to bridge connections among founders, funders, universities, corporations, policymakers, and technical experts, consciously extending these relationships beyond its proprietary portfolio. This inclusive approach fosters a more resilient and interconnected innovation environment. A cornerstone of this effort is Cortado’s annual Midcontinent Venture Capital Summit, which convenes investors, limited partners, founders, and ecosystem leaders from across the country, catalyzing critical dialogue and networking. Furthermore, Cortado collaborates closely with regional entrepreneurship organizations and The Verge, an Oklahoma City-based incubator and accelerator that provides essential company-building resources, programming, and vital capital connections. Each of these interactions serves as a potential catalyst for a founder to secure a customer, find an adviser, recruit an employee, forge a collaboration, or attract an investor. Collectively, these relationships construct the foundational infrastructure necessary for more companies to launch, scale, and thrive, ultimately expanding venture capital’s impact far beyond individual investments.
Investment Discipline: Conviction Without False Certainty
In the realm of early-stage investing, perfect information is a luxury rarely afforded. Moradi humorously acknowledges this reality: "Incomplete data is my job description." Rather than attempting to eliminate inherent uncertainties, his approach involves a disciplined separation of assumptions that can be immediately tested from those that will only resolve over time. He meticulously identifies the conditions that must hold true, rigorously considers how they could be disproven, and carefully evaluates the cost associated with achieving the next significant milestone.
Moradi’s strongest convictions typically coalesce around the founding team’s capabilities, the criticality 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 the exact path a company might ultimately take to an exit. This discipline is especially crucial during fast-moving financing rounds, where the allure of a compelling founder and a competitive process can generate immense pressure to make swift decisions before central investment assumptions have been thoroughly vetted. "A hard deadline is exactly when people stop asking uncomfortable questions," Moradi warns. When circumstances demand it, Cortado will deliberately slow down the process, engaging independent scientific or technical experts for deeper evaluation. This additional diligence can either fortify the firm’s conviction or reveal compelling reasons to step away. Paradoxically, many of Cortado’s most robust founder relationships have begun with 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.
Moradi applies a similar discipline to company valuation. He views "a sensible entry price as a form of protection for the founder, employees, and investors alike." While an aggressive valuation might feel like an immediate triumph, if the company’s subsequent progress fails to meet the inflated expectations tied to that number, the repercussions can be severe, impacting founder ownership, employee equity, future fundraising viability, and the company’s crucial ability to adapt. This balance is vital, as excessive conservatism from VCs can also stifle nascent companies. "The right number buys you options for years. In boom times, people forget that financial crises happen," Moradi emphasizes, highlighting the long-term perspective. For Cortado, this discipline is not a reflection of a lack of belief in a founder’s ambition but rather a pragmatic strategy to endow an ambitious company with the flexibility and time essential for its ultimate success.
Actionable Support: Speed, Specificity, and Strategic Intervention
The operational experience embedded within Cortado’s team—having built, scaled, and successfully exited companies across many of the very industries they now invest in—profoundly shapes their approach to founder support. This practical background becomes invaluable when plans inevitably shift or difficult decisions emerge. 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, making a critical customer introduction, assisting in the recruitment of a senior executive, or taking responsibility for navigating a challenging board conversation. It also encompasses the difficult but necessary task of speaking uncomfortable truths when a company’s runway is shortening or its strategic direction needs a radical pivot. Moradi, having been in those founder meetings himself, understands the profound impact of such interventions. "What helped was someone who lowered the temperature, told the truth to me and the board, and followed up after the meeting," he recounts.
As Cortado and the surrounding ecosystem have matured, the firm’s founder support has grown increasingly sophisticated. Portfolio companies can now tap into a broad network of operating executives, industry specialists, advisers, prospective customers, coaches, investors, and other founders within Cortado’s expansive network. The needs of founders in the region have also evolved. While capital scarcity once made Cortado’s investment and ability to attract additional investors particularly valuable, today’s founders also seek critical customer access, senior talent, 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 not to intervene. "Other times," Moradi notes, "being helpful means staying out of the way."
Building Legacies Beyond a Single Fund
Moradi firmly believes that a venture firm’s responsibility transcends the confines of its own portfolio. "We must build things that outlast a single fund," he asserts. For Cortado, this translates into a relentless focus on strengthening the connective tissue among founders, funders, universities, corporations, and policymakers across the Midcontinent. It also means actively fostering the formation and growth of other investment firms within the region. "This is not a zero-sum game," Moradi declares. "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 simultaneously creates more opportunities for investors to collaborate and participate in promising companies, ultimately establishing a more durable pathway between regional innovation and national capital markets. This ecosystem-building imperative, however, does not diminish a firm’s fiduciary responsibility to its limited partners. Moradi, having served as a trustee and audit committee member for a state retirement system, deeply understands the importance of direct communication 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, emphasizing the dual commitment to regional growth and investor stewardship.
Moradi also highlights the crucial role of the NVCA as part of the broader connective infrastructure supporting 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 directly influence whether an emerging manager can raise a fund, whether a startup can attract essential talent, and whether a new technology can 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 confirms. Furthermore, Cortado’s participation in the NVCA provides a vital platform to infuse a Midcontinent perspective into national conversations concerning innovation, capital formation, and the future trajectory of the venture industry.
Expanding the Map of American Innovation
Moradi hopes Cortado’s story serves as an illuminating example of the vast breadth and diversity within American venture capital. While the industry’s largest firms often garner the most attention, the vast majority of venture activity involves smaller, specialized investors writing early checks into niche industries, specific technologies, underserved communities, and emerging 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," he explains, demystifying the industry.
These specialized firms play an indispensable role in identifying founders before their markets become obvious, skillfully connecting specialized knowledge with crucial capital, and guiding companies through the challenging period between a promising idea and a sustainable business. "The hardest work happens after the money moves," Moradi stresses.
The advent of new technologies—such as artificial intelligence, advanced automation, advanced manufacturing, energy innovation, biotechnology, and space technology—is dramatically reducing the cost and barrier to entry for attempting ambitious ideas. Small, agile teams can now pursue opportunities that once demanded the colossal resources of large corporations or national programs. Many of these groundbreaking teams are increasingly emerging in locations intimately connected to the complex problems they are striving to solve.
This is the profound broader impact of geographically expanding venture capital across America. When investors consciously look beyond familiar networks and engage with founders directly where critical industries operate, they facilitate the transformation of more innovative ideas into viable companies, enable more groundbreaking technologies to reach the market, and empower more communities to actively participate in the nation’s dynamic innovation economy. For Mike Moradi, the founders who dare to attempt what others deem impossible remain the greatest source of optimism. "Never forget that we’re here for them. When we do this right, everyone, including humanity, wins," he concludes, encapsulating the grand vision behind Cortado Ventures’ pioneering work.
Cortado Ventures stands as a compelling example of how a founder-first approach, combined with a strategic regional focus and a deep commitment to ecosystem building, can unlock significant value and drive innovation in previously overlooked markets. The firm’s journey highlights a critical shift in the venture capital landscape, proving that talent and opportunity are distributed far more widely than capital has traditionally flowed, and that investing in these untapped regions yields not only strong returns but also contributes to a more equitable and robust national innovation ecosystem. To explore more about Cortado Ventures and its impactful work, visit cortado.ventures.
