In a landscape traditionally dominated by coastal venture capital hubs, Cortado Ventures, an Oklahoma City-based firm, is forging a distinctive path under the leadership of co-founder and general partner Mike Moradi. As part of the NVCA’s "Meet a VC" series, Moradi sheds light on the firm’s unique investment philosophy, deeply rooted in the belief that the most transformative innovation often arises from individuals with deep, firsthand experience within critical industries. Cortado Ventures, established in 2020, focuses on seed-stage frontier technology companies across the U.S. Midcontinent, aiming to democratize access to capital and expertise, thereby expanding the very map of American innovation.
A Founder’s Journey Forged in Failure and Resilience
Moradi’s journey into venture capital is not one of abstract financial theory but of hard-won entrepreneurial wisdom. A six-time founder, his career spans diverse and technically complex sectors, including biopharmaceuticals and nanotechnology. This extensive operating experience provides the bedrock for Cortado’s "built by founders, for founders" ethos. His entrepreneurial path began unconventionally, leaving dental school to launch his first company—an endeavor that ultimately failed. This initial setback, however, proved to be a crucible, instilling in Moradi an unyielding resolve. "The lesson was to keep pushing past every obstacle, to not be discouraged by hearing the word ‘no,’ and to stay the course," he recounts, highlighting the resilience critical for any founder.
His subsequent ventures painted a more successful, yet equally instructive, picture. A second company scaled rapidly and was acquired by a Fortune 100 enterprise, validating his entrepreneurial acumen. Later, a San Francisco Bay Area startup also achieved acquisition, but only after navigating a perilous period post-Series B financing of $18 million, where it teetered on the brink of collapse. This near-failure delivered a profound lesson: while capital can accelerate growth, speed without direction is a dangerous proposition. Moradi observed, "A high valuation and a full bank account will happily let you scale the wrong thing." This experience underscored the importance of pairing entrepreneurial optimism with rigorous evidence, disciplined execution, and a clear understanding of what a company must prove next. These early lessons profoundly shaped his approach to investing, emphasizing strategic capital deployment to test assumptions, mitigate risk, and achieve verifiable milestones, rather than simply fueling unchecked expansion.
The Strategic Advantage of the Midcontinent
Cortado Ventures’ investment thesis is predicated on a powerful, often overlooked, competitive advantage: the U.S. Midcontinent itself. This vast region is a nexus of foundational American industries grappling with immense pressure to evolve and innovate. Sectors such as energy, aerospace and defense, healthcare, manufacturing, mobility, and logistics operate within intricate physical environments, established supply chains, and demanding customer relationships. Transforming these industries demands more than just novel software; it requires a profound, intrinsic understanding of their operational intricacies.
Cortado 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, identifying persistent problems and conceiving innovative solutions from within. This insider perspective grants them invaluable credibility with customers, crucial insight into implementation challenges, and a nuanced understanding that is exceedingly difficult to cultivate from an external vantage point.
The geographical advantage extends beyond mere proximity to these industries. The Midcontinent offers a robust ecosystem comprising a technically skilled workforce, burgeoning research institutions, significant complementary public funding initiatives, and substantially lower company-building costs compared to traditional tech hubs. These factors combine to create a fertile ground for innovation, attracting talent and fostering the development of groundbreaking technologies. Indeed, recent data suggests a growing trend of venture capital flowing into historically underserved regions. According to PitchBook-NVCA Venture Monitor reports, while Silicon Valley, New York, and Boston continue to dominate, states within the Midcontinent, such as Oklahoma, Texas, and Kansas, have shown consistent year-over-year growth in venture funding, albeit from a smaller base. This trend signifies a broader recognition of untapped potential and a strategic shift towards diversifying innovation sources.
Cortado’s portfolio vividly illustrates the breadth of this emerging innovation, featuring companies applying cutting-edge technologies across diverse fields like space communications, industrial safety, critical infrastructure cybersecurity, advanced manufacturing, healthcare, and sustainable energy solutions. The firm’s strategy is not merely to invest in Midcontinent founders out of regional loyalty, but from a firm conviction that proximity to "hard problems" inherently generates differentiated companies and, consequently, strong financial returns. Moradi succinctly articulates this belief: "Talent is not concentrated anywhere in particular. Capital and networks have just been slower to distribute than talent has." This perspective underscores a fundamental re-evaluation of where genuine innovation is likely to emerge, highlighting the immense potential when capital and networks finally catch up with geographically dispersed talent.
Capital: Necessary, Yet Insufficient for Ecosystem Growth
When Cortado Ventures launched, Moradi initially believed that the primary impediment to a nascent venture ecosystem was a dearth of capital. The firm quickly demonstrated that promising companies could indeed be identified and funded within the region, effectively filling a critical gap. However, as Cortado matured and its understanding deepened, Moradi’s perspective on the needs of founders evolved significantly. He observed, "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."
This realization became a cornerstone of Cortado’s broader mission: true ecosystem building. Founders, especially in emerging regions, require a holistic support system that extends far beyond initial funding. They need experienced operators who can provide guidance to circumvent preventable mistakes, early-adopter customers willing to pilot unproven technologies, patient investors prepared to support companies through challenging interim milestones, and a vibrant community where crucial relationships can naturally coalesce. Moradi emphasizes, "Money can accelerate a company. It cannot stand in for experience."
Consequently, Cortado Ventures has actively cultivated its role as a central connector within the Midcontinent ecosystem. The firm proactively links founders with funders, academic institutions, established corporations, policymakers, and technical experts, consciously extending these vital relationships beyond the confines of its own portfolio. 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 partners with regional entrepreneurship organizations and "The Verge," an Oklahoma City incubator and accelerator that provides comprehensive company-building resources, programming, and essential capital connections. Each of these interactions, Moradi believes, serves as a potential catalyst for a founder to discover a crucial customer, an invaluable advisor, a key employee, a strategic collaborator, or a future investor. Collectively, these efforts meticulously construct the foundational infrastructure necessary for a greater number of companies to not only launch but also successfully scale, thereby amplifying venture capital’s impact far beyond individual investments.
Conviction Without False Certainty: A Disciplined Investment Approach
Early-stage venture investing is inherently characterized by incomplete information and significant uncertainty. Moradi readily acknowledges this reality, stating, "Incomplete data is my job description." Rather than attempting to eliminate uncertainty, his approach involves a disciplined methodology for managing it. He meticulously differentiates between assumptions that can be immediately tested and those that will only be resolved over an extended period. This involves identifying the critical conditions that must hold true, rigorously considering how these conditions could be disproven, and carefully evaluating the cost of achieving the next meaningful milestone.
His strongest convictions typically coalesce around the founding team’s capabilities, the veracity of the customer problem being addressed, and the company’s demonstrable rate of progress. Conversely, he maintains a healthy skepticism regarding predictions about the precise timing of an emerging market or the exact path a company might eventually take to an exit. This discipline becomes particularly vital when financing rounds are progressing at a rapid pace. A compelling founder narrative combined with a competitive fundraising process can often create intense pressure to make investment decisions before core assumptions have been thoroughly vetted. Moradi cautions, "A hard deadline is exactly when people stop asking uncomfortable questions."
In such instances, Cortado is prepared to deliberately slow down the process, engaging independent scientific or technical experts for deeper evaluation. This additional due diligence may either solidify the firm’s conviction or reveal critical reasons to step away. Interestingly, many of Cortado’s most robust founder relationships have been forged through this initial scrutiny, as it sharpens strategic thinking and identifies potential risks while there is still ample opportunity to address them. However, slowing 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 rigorous discipline to company valuations. He advocates for a "sensible entry price," considering it "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 attached to that figure, the repercussions can be severe. These can include dilution of founder ownership, erosion of employee equity, constrained future fundraising options, and a diminished capacity for the company to adapt to unforeseen challenges. Moradi emphasizes, "The right number buys you options for years. In boom times, people forget that financial crises happen." This balanced perspective, recognizing that both excessive investor stringency and over-eager valuations can harm a company, highlights Cortado’s commitment to long-term sustainability. For Cortado, this discipline is not indicative of a lack of belief in a founder’s ambition but rather a pragmatic strategy to afford an ambitious company the necessary flexibility and time to achieve enduring success.
Beyond the Check: Actionable Support and Ecosystem Stewardship
Cortado Ventures’ support for its portfolio companies extends far beyond capital. The firm’s team, comprising individuals who have built, scaled, and successfully exited companies across many of the industries in which they invest, possesses invaluable operating experience. This background profoundly shapes how they assist founders when plans inevitably shift or difficult decisions emerge. Moradi encapsulates meaningful support in 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 actionable support can manifest in various ways: rebuilding a complex financial model, facilitating critical customer introductions, actively recruiting senior executives, or taking ownership of challenging discussions during board meetings. It also involves the courage to deliver uncomfortable truths when a company’s runway is shortening or its strategic direction requires a fundamental pivot. Moradi, recalling his own experiences as a founder in such high-stakes meetings, emphasizes the importance of a calming presence: "What helped was someone who lowered the temperature, told the truth to me and the board, and followed up after the meeting."
As Cortado and the broader Midcontinent ecosystem have matured, the sophistication of the firm’s founder support has likewise evolved. Portfolio companies now have access to a rich network of operating executives, industry specialists, advisors, prospective customers, coaches, and fellow founders. The needs of founders have also diversified. While capital was once the scarcest resource in the region, today’s entrepreneurs increasingly seek customer access, senior talent, specialized technical expertise, and candid, experienced guidance. Crucially, Cortado understands that its role is not to usurp control from the entrepreneur. Sometimes, the most valuable contribution an investor can make is recognizing when to step back. "Other times," Moradi concludes, "being helpful means staying out of the way."
Building Legacies That Outlast a Fund
Moradi firmly believes that a venture firm’s responsibility transcends the performance of its own portfolio. "We must build things that outlast a single fund," he asserts. For Cortado, this enduring legacy involves the sustained strengthening of connections 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. Moradi unequivocally states, "This is not a zero-sum game. 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 more expansive and interconnected investment community offers founders a wider array of potential capital sources and expertise. It simultaneously creates more opportunities for investors to collaborate and participate in promising ventures. Over time, this collective effort can establish a more robust and durable pathway between regional innovation and national capital markets, attracting greater attention and investment.
This commitment to ecosystem building, however, does not diminish Cortado’s fundamental responsibility to its limited partners. Moradi’s experience as a trustee and audit committee member for a state retirement system instilled in him the paramount importance of 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 affirms, striking a crucial balance between community development and financial stewardship.
Moradi also recognizes the pivotal role of organizations like the NVCA (National Venture Capital Association) as critical connective infrastructure supporting firms and founders nationwide. Policy issues such as capital formation, research commercialization, immigration policies, government procurement, tax treatment, and securities regulations are not abstract concepts; they directly influence an emerging manager’s ability to raise a fund, a startup’s capacity to attract essential 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 notes. Cortado’s active participation in the NVCA also 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 the story of Cortado Ventures can serve as a compelling illustration of the rich diversity within American venture capital. While the industry’s largest, most visible firms often capture the lion’s share of attention, the vast majority of venture capital activity involves smaller, specialized investors writing early-stage checks into niche sectors, specific technologies, underserved communities, and emerging regions. "Most of VC looks nothing like the caricature," Moradi explains. "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."
These specialized firms play an indispensable role in identifying founders before their markets become obvious, skillfully connecting specialized knowledge with essential capital, and guiding companies through the arduous period between a promising idea and a sustainable, thriving business. "The hardest work happens after the money moves," Moradi stresses, highlighting the operational intensity required in early-stage investing.
The advent of new technologies, such as artificial intelligence, advanced automation, cutting-edge manufacturing processes, energy innovation, biotechnologies, and sophisticated space technology, is dramatically reducing the cost and complexity of pursuing ambitious ideas. This technological democratization means that small, agile teams can now tackle opportunities that once demanded the vast resources of large corporations or national programs. Many of these pioneering teams, Moradi contends, will naturally emerge in locations intimately connected to the complex problems they are striving to solve.
This decentralization of venture capital across America carries profound broader implications. When investors consciously look beyond familiar networks and actively engage with founders in regions where critical industries operate, they facilitate the transformation of more ideas into viable companies, enable more groundbreaking technologies to reach the market, and empower more communities to actively participate in and benefit from the nation’s innovation economy. For Mike Moradi, the ultimate source of optimism remains the founders themselves—those courageous 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 Cortado Ventures’ mission to not only drive returns but to foster a more inclusive and impactful future for innovation. Cortado Ventures, an esteemed member of the NVCA, continues to demonstrate the power of this vision, and further information can be found at cortado.ventures.
