In a significant spotlight within the National Venture Capital Association’s (NVCA) "Meet a VC" series, Mike Moradi, co-founder and general partner of Oklahoma City-based Cortado Ventures, has emerged as a compelling figure advocating for the strategic expansion of American innovation. Cortado Ventures, a firm specializing in seed-stage frontier technology investments across the U.S. Midcontinent, is actively challenging conventional venture capital paradigms by championing a thesis grounded in the unique insights and experiences of founders deeply embedded within critical industries. This approach not only aims to democratize access to capital but also to tap into overlooked reservoirs of talent and problem-solving prowess that promise robust returns and a more diversified national innovation economy.
Moradi’s journey into the intricate world of venture capital is far from conventional, forged in the crucible of his own extensive entrepreneurial endeavors. A six-time founder, his career spans technically complex sectors such as biopharmaceuticals and nanotechnology, providing him with an intimate understanding of the startup lifecycle – from the exhilaration of ideation to the arduous struggle for market validation. His entrepreneurial saga commenced when he boldly departed dental school to launch his first company, an endeavor that, critically, ended in failure. Far from being a deterrent, this initial setback proved to be a foundational lesson in resilience. "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, emphasizing the invaluable fortitude gained from navigating early-stage adversity.
This persistence soon bore fruit. His subsequent venture achieved rapid growth and was successfully acquired by a Fortune 100 company, marking a significant early triumph. However, another experience with a San Francisco Bay Area startup, which narrowly avoided collapse despite securing an $18 million Series B financing, instilled a different, equally critical lesson: the nuanced relationship between capital and readiness for scale. Moradi keenly observed that while funding can accelerate growth, it can also amplify missteps if a company is not moving in the right strategic direction. "A high valuation and a full bank account will happily let you scale the wrong thing," he wisely noted, underscoring the potential pitfalls of premature or misdirected expansion. This insight profoundly shaped his current philosophy, which advocates for pairing entrepreneurial optimism with rigorous evidence, disciplined execution, and a clear understanding of the next verifiable milestone a company must achieve.
These hard-won lessons culminated in the co-founding of Cortado Ventures in 2020. Moradi, alongside a team of seasoned founders, CEOs, and operators, envisioned a venture firm that would embody the supportive, understanding partner they wished they had encountered during their own entrepreneurial careers. The firm was designed not merely as a source of capital but as a comprehensive support system, capable of contributing far beyond the initial investment. This ethos of "built by founders, for founders" underpins Cortado’s operational model and its deep engagement with its portfolio companies.
The Strategic Advantage of the Midcontinent
Cortado Ventures’ investment thesis is predicated on a profound belief in the untapped potential of the U.S. Midcontinent. This vast region, often overlooked by traditional coastal venture capital hubs, is home to a robust concentration of industries facing immense pressure to innovate and evolve. Sectors such as energy, aerospace and defense, healthcare, manufacturing, mobility, and logistics are deeply embedded within complex physical environments, established supply chains, and demanding customer relationships. Transforming these critical industries requires more than just novel software applications; it demands a deep, experiential understanding of their intrinsic workings.
This is where Cortado identifies its competitive edge. The firm actively seeks out experienced technical founders who possess this invaluable domain knowledge—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 challenges, and a nuanced understanding that would be exceedingly difficult for outsiders to cultivate. Data consistently shows that while the lion’s share of venture capital historically flowed to California, New York, and Massachusetts, regions like the Midcontinent are increasingly demonstrating their capacity to foster groundbreaking innovation. According to PitchBook-NVCA Venture Monitor reports, while coastal states still dominate, a growing percentage of early-stage deals are occurring in emerging tech hubs, highlighting a slow but steady decentralization of venture activity.
Beyond the founders’ expertise, the geography itself offers distinct advantages. The Midcontinent provides direct proximity to critical industries and potential customers, access to a technically skilled workforce, strong research institutions, complementary public funding initiatives, and significantly lower company-building costs compared to saturated coastal markets. This combination creates a fertile ground for startups, enabling them to extend their runway and focus resources more effectively on product development and market penetration. Cortado’s diverse portfolio reflects this rich environment, with investments spanning space communications, industrial safety, critical infrastructure cybersecurity, advanced manufacturing, healthcare, energy, and mobility.
It is crucial to note that Cortado’s strategy is not a compensatory measure for historically underfunded regions. Instead, it is built on the conviction that proximity to "hard 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." This statement encapsulates a broader movement within the venture capital landscape to identify and empower innovators wherever they may reside, rather than adhering to geographically constrained networks. For Moradi, expanding the geographic reach of venture capital is not merely about increasing the number of funded founders; it is about uncovering novel sources of insight and innovation that traditional, often insular, networks may have historically overlooked.
Capital: Necessary, But Not Sufficient
When Cortado Ventures first launched, Moradi initially believed that the primary constraint facing a nascent venture ecosystem like the Midcontinent’s was a simple shortage of capital. The firm quickly proved its ability to identify and fund promising companies within the region, successfully deploying capital and attracting co-investors. However, as Cortado matured and its understanding of the ecosystem deepened, Moradi’s perspective on what founders truly needed became more expansive. "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, reflecting a critical evolution in his thinking.
This realization underscored that capital, while essential, is merely one component of a thriving startup ecosystem. Founders require a multifaceted support network that includes experienced operators who can guide them away from preventable mistakes, early-adopter customers willing to pilot unproven technologies, patient investors prepared to bridge funding gaps between milestones, and a vibrant community where vital relationships can naturally form. As Moradi aptly puts it, "Money can accelerate a company. It cannot stand in for experience."
This epiphany profoundly shaped Cortado’s proactive role in nurturing the broader Midcontinent ecosystem. The firm actively works to connect founders with funders, universities, corporations, policymakers, and technical experts, extending these crucial relationships beyond the confines of its own portfolio. A prime example is the annual Midcontinent Venture Capital Summit, which convenes investors, limited partners, founders, and ecosystem leaders from across the nation, fostering collaboration and knowledge exchange. Furthermore, Cortado collaborates with regional entrepreneurship organizations and "The Verge," an Oklahoma City incubator and accelerator that provides essential company-building resources, programming, and capital connections. Each of these interactions serves as a potential catalyst, helping a founder discover a new customer, adviser, employee, collaborator, or investor. Collectively, these relationships form the critical infrastructure that empowers more companies to successfully launch and scale. For Moradi, this ecosystem-building approach represents the true extended impact of venture capital, transcending individual investments to create durable pathways for innovation, talent, and capital to converge.
Conviction Without False Certainty: Cortado’s Investment Discipline
In the dynamic and often opaque world of early-stage investing, perfect information is a rare commodity. Moradi candidly acknowledges this inherent uncertainty, stating, "Incomplete data is my job description." Rather than attempting to eliminate uncertainty, Cortado’s investment philosophy focuses on disciplined risk assessment: separating assumptions that can be immediately tested from those that will only resolve over time. The firm meticulously identifies the conditions that must hold true for an investment to succeed, rigorously considers how these conditions could be disproven, and carefully evaluates the cost of achieving the next meaningful milestone.
Cortado’s strongest convictions typically center on the founding team’s capabilities, the criticality of the customer problem being addressed, and the company’s demonstrable rate of progress. Conversely, Moradi approaches predictions regarding the precise timing of an emerging market or the exact path a company might take to an exit with a healthy dose of caution. This discipline becomes particularly vital when a financing round is moving at an accelerated pace. The allure of a compelling founder and the pressure of a competitive process can often incentivize investors to make rapid decisions before central investment assumptions have been thoroughly vetted. "A hard deadline is exactly when people stop asking uncomfortable questions," Moradi warns, highlighting the risk of overlooking critical red flags under pressure.
To counteract this, Cortado is willing to slow down the diligence process when necessary, often bringing in independent scientific or technical experts to provide an unbiased evaluation. This additional scrutiny can either solidify the firm’s conviction or reveal reasons to step away from a deal. Paradoxically, some of Cortado’s most robust founder relationships have begun with this rigorous scrutiny, as it sharpens strategic thinking and identifies potential risks while there is still ample time to address them. However, slowing the decision-making process does not equate to a delayed response once a decision is made.
Moradi applies a similar discipline to valuation, viewing a "sensible entry price" as a form of protection for all stakeholders: founders, employees, and investors alike. While an aggressive valuation might feel like an immediate victory, if the company’s subsequent progress fails to meet the lofty expectations attached to that number, the consequences can be severe. This can negatively impact founder ownership, dilute employee equity, constrain future fundraising options, and hinder a company’s crucial ability to adapt to unforeseen market changes. Moradi emphasizes the cyclical nature of financial markets, stating, "The right number buys you options for years. In boom times, people forget that financial crises happen." For Cortado, this discipline is not a lack of belief in a founder’s ambition; rather, it is a pragmatic approach designed to provide ambitious companies with the financial flexibility and time required to truly succeed, navigating both boom and bust cycles.
Active Support: Showing Up With Work Already Done
Cortado Ventures’ team brings extensive operating experience, having built, scaled, and successfully exited companies across many of the industries in which the firm now invests. This practical, hands-on background profoundly shapes how the firm supports its founders, particularly when plans inevitably shift or difficult decisions emerge. Moradi distills the essence of meaningful support into two words: "Speed and specificity." He elaborates on this by stating, "Answer in hours rather than days and show up with work already done instead of advice. Better yet, pick up the phone."
This commitment to active, tangible support can manifest in various ways: from rebuilding a complex financial model, to making a critical customer introduction, to assisting in the recruitment of a senior executive, or even taking responsibility for navigating a challenging board conversation. It also extends to the difficult but necessary task of delivering uncomfortable truths when a company’s runway is shortening or its strategic direction needs a drastic pivot. Moradi, having been the founder in those very meetings, recalls, "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 surrounding ecosystem have grown, the firm’s founder support has become increasingly sophisticated. Portfolio companies now have access to a rich network comprising operating executives, industry specialists, advisers, prospective customers, coaches, investors, and fellow founders. While capital scarcity in the region initially made Cortado’s investment and ability to attract co-investors particularly valuable, today, founders also increasingly seek customer access, senior talent acquisition support, specialized technical expertise, and candid, honest guidance. Crucially, the firm’s role is never to usurp control from the entrepreneur. In fact, Moradi recognizes that "sometimes being helpful means staying out of the way," highlighting the discerning judgment required to empower founders effectively.
Building What Outlasts a Fund: A Vision for Enduring Impact
Moradi holds a strong conviction that a venture firm’s responsibility extends beyond the immediate performance of its own portfolio. "We must build things that outlast a single fund," he asserts, articulating a vision for enduring, systemic impact. For Cortado, this translates into a dedicated effort to strengthen 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, viewing the ecosystem’s expansion as a collective endeavor rather than a zero-sum game. "This is not a zero-sum game," Moradi confirms. "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 yields multiple benefits: it provides founders with a broader array of potential capital sources and expertise, creates more opportunities for investors to collaborate on promising companies, and, over time, establishes a more robust pathway between regional innovation and national capital markets. This ecosystem-building mandate, however, does not diminish a firm’s primary 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 a disciplined fiduciary, direct about investment risk, duration, and potential losses. "Ecosystem building matters, and it does not excuse any of us from being disciplined fiduciaries first," he firmly states.
Cortado Ventures also recognizes the critical role of organizations like 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 an emerging manager’s ability to raise a fund, a startup’s capacity to attract talent, and a new technology’s potential to reach its intended customers and institutions. Moradi notes, "NVCA helps each of us make policy concrete and stay on top of the issues that matter in D.C. and beyond." Furthermore, Cortado’s active participation in the NVCA provides a vital platform to bring a Midcontinent perspective into national conversations about innovation, capital formation, and the future trajectory of the venture industry, ensuring that diverse regional voices are heard.
Expanding the Map of American Innovation
Moradi hopes that Cortado Ventures’ narrative can help reshape public perception and illuminate the true breadth and diversity of American venture capital. While the industry’s largest, most visible firms often garner the greatest attention, the vast majority of venture capital activity is carried out by smaller, often specialized investors. These firms write early checks into niche areas—be it industrial, geographic, demographic, or otherwise—playing an indispensable role in the ecosystem. "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.
These specialized firms are essential for identifying founders before their markets become obvious, for effectively connecting specialized knowledge with capital, and for guiding companies through the challenging period between a promising idea and a sustainable business. "The hardest work happens after the money moves," Moradi emphasizes, highlighting the intensive post-investment support crucial for success.
The accelerating pace of new technological advancements, including artificial intelligence, automation, advanced manufacturing, energy innovation, biology, and space technology, is dramatically reducing the cost and complexity of pursuing ambitious ideas. This paradigm shift means that small teams can now tackle opportunities that once demanded the vast resources of large corporations or national programs. Significantly, many of these groundbreaking teams are emerging in locations directly connected to the problems they are striving to solve, moving innovation beyond traditional coastal enclaves.
This decentralization represents the broader, transformative impact of expanding venture capital across America. When investors consciously look beyond familiar networks and actively seek out founders in regions where critical industries operate, they facilitate the transformation of more ideas into viable companies, enable more technologies to reach the market, and empower a greater number of communities to participate meaningfully in the country’s innovation economy. For Mike Moradi, the unwavering optimism lies with the founders themselves—those intrepid individuals attempting 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 purpose driving Cortado Ventures’ mission.
Cortado Ventures stands as a testament to the evolving landscape of American venture capital, proving that disciplined investment, active ecosystem building, and a deep understanding of regional strengths can unlock significant value and foster innovation far beyond traditional boundaries. The NVCA proudly counts Cortado Ventures among its members, recognizing its pivotal role in shaping a more inclusive and robust future for the venture industry. To delve deeper into the firm’s pioneering work, interested parties can visit cortado.ventures.
