In a compelling feature for the National Venture Capital Association’s (NVCA) "Meet a VC" series, Mike Moradi, co-founder and general partner of Cortado Ventures, sheds light on a transformative approach to venture capital. Based in Oklahoma City, Cortado Ventures is strategically investing in seed-stage frontier technology companies across the U.S. Midcontinent, challenging traditional notions of where American innovation can thrive. The firm’s distinctive thesis is anchored in the conviction that the most impactful founders are often those with deep, firsthand experience within the very industries they seek to revolutionize. By providing these seasoned entrepreneurs with critical capital, customer connections, and a robust support network, Cortado is actively expanding the geographical footprint of venture-backed innovation.
The Entrepreneur’s Journey: Lessons Forged in Failure and Success
Mike Moradi’s transition into venture capital was not a theoretical one; it was a natural evolution born from a storied and often challenging entrepreneurial career. A six-time founder, Moradi navigated the tumultuous landscape of company building across technically complex sectors such as biopharmaceuticals and nanotechnology. His journey, marked by both exhilarating successes and instructive setbacks, laid the groundwork for Cortado’s "Built by Founders, for Founders" ethos.
Moradi’s entrepreneurial saga began unconventionally, as he departed dental school to launch his first company. That initial venture, he readily admits, failed. Yet, this early defeat did not diminish his ambition; instead, it instilled a profound resilience and an unwavering commitment to persevere through adversity. "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 tenacity that defines many successful entrepreneurs.
His subsequent ventures painted a more varied picture of success. One company achieved rapid growth and was eventually acquired by a Fortune 100 enterprise, validating his entrepreneurial spirit. Another San Francisco Bay Area startup also secured an acquisition, but only after a perilous near-collapse following an $18 million Series B financing round. This latter experience delivered a critical lesson, distinct from the first: while capital can accelerate growth, speed without direction or market readiness is a dangerous proposition. "A high valuation and a full bank account will happily let you scale the wrong thing," Moradi cautions, a wisdom he now imparts to Cortado’s portfolio companies.
These formative experiences shaped Moradi’s current mission: to infuse the entrepreneurial dynamism of Silicon Valley into the burgeoning Midcontinent ecosystem. He emphasizes a disciplined approach to capital deployment, prioritizing the sequence and timing of investment to help founders test assumptions, mitigate risk, and achieve meaningful milestones. Financing, in Cortado’s view, should empower a business to prove its model, not merely to grow ahead of its validated capabilities. This philosophy marries entrepreneurial optimism with rigorous evidence and a clear understanding of immediate strategic objectives. In 2020, Moradi co-founded Cortado Ventures alongside a team of seasoned founders, CEOs, and operators, united by a shared vision to create the kind of supportive, understanding venture firm they wished had existed during their own entrepreneurial endeavors.
The Midcontinent Advantage: Proximity to Hard Problems
Cortado Ventures’ investment thesis is deeply rooted in the unique strengths and challenges of the U.S. Midcontinent. This expansive region is not merely a geographic location; it is a vibrant hub for critical industries — including energy, aerospace and defense, healthcare, manufacturing, mobility, and logistics — all of which face immense pressure to innovate and evolve. These sectors operate within complex physical environments, rely on established supply chains, and serve demanding customer bases, requiring solutions that go far beyond superficial software applications. True transformation, Cortado believes, demands an intimate understanding of industry mechanics.
This understanding forms the bedrock of Cortado’s search for founders. The firm actively seeks technical entrepreneurs who possess years of embedded experience within hospitals, factories, laboratories, energy companies, aerospace programs, or logistics networks. These individuals, having identified persistent problems from the inside, bring unparalleled credibility with customers, crucial insight into implementation complexities, and a depth of knowledge that external players would struggle to acquire.
The Midcontinent itself provides a significant competitive advantage. The region offers unparalleled proximity to these critical industries and potential customers, fostering direct feedback loops and partnership opportunities. It boasts a technically skilled workforce, often trained by strong regional research institutions, and benefits from complementary public funding initiatives. Crucially, the lower costs associated with company building in the Midcontinent allow startups to stretch their capital further, providing longer runways for product development and market validation compared to more expensive coastal hubs.
Supporting data highlights the increasing attractiveness of the Midcontinent. While historically underrepresented in venture capital funding compared to coastal giants like California and New York, the region has seen a steady rise in investment. According to PitchBook-NVCA Venture Monitor reports, non-traditional VC hubs, including the Midcontinent, have consistently increased their share of total U.S. venture dollars over the past decade. This shift is driven by factors such as lower operational costs, access to specialized talent, and a growing recognition among investors that "talent is not concentrated anywhere in particular. Capital and networks have just been slower to distribute than talent has," as Moradi aptly puts it. This growing trend suggests a market inefficiency that Cortado Ventures is uniquely positioned to exploit.
Cortado’s diverse portfolio exemplifies the breadth of innovation emerging from this environment. The firm has invested in companies applying cutting-edge technologies across space communications, industrial safety, critical infrastructure cybersecurity, advanced manufacturing, healthcare, energy, and mobility. This strategy is not merely about channeling capital to historically underserved areas; it is built on the strong conviction that proximity to "hard problems" — the deep-seated challenges within foundational industries — inherently produces differentiated companies and robust financial returns. For Moradi, expanding the geographic reach of venture capital is not just about finding more founders; it’s about unlocking new sources of insight and innovation that traditional networks have historically overlooked.
Beyond Capital: Cultivating a Thriving Ecosystem
When Cortado Ventures first launched, Mike Moradi, like many pioneers in emerging ecosystems, believed that the primary constraint facing the Midcontinent was a scarcity of capital. The firm quickly proved its ability to identify and fund promising companies within the region, successfully demonstrating that viable investment opportunities abounded. However, as Cortado matured and its understanding deepened, 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," Moradi states, articulating a crucial realization. Founders, he discovered, require a multifaceted support system that extends far beyond monetary investment. This includes access to experienced operators who can help preempt preventable mistakes, customers willing to adopt unproven technologies, patient investors who support companies between milestones, and a vibrant community where vital relationships can naturally form. "Money can accelerate a company," Moradi adds, "It cannot stand in for experience."
This expansive view profoundly shaped Cortado’s role within the broader Midcontinent ecosystem. Rather than reserving its network exclusively for its portfolio companies, the firm actively works to connect founders, funders, universities, corporations, policymakers, and technical experts across the region. A cornerstone of these efforts 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. Cortado also partners with regional entrepreneurship organizations, including The Verge, an Oklahoma City-based incubator and accelerator that provides essential company-building resources, programming, and capital connections.
Each of these interactions, from a summit networking event to an incubator workshop, represents a potential catalyst for a founder – an introduction to a customer, an adviser, a key employee, a collaborator, or a future investor. Collectively, these relationships construct the critical infrastructure necessary for more companies to successfully launch and scale. The implications of this ecosystem-building approach are far-reaching: it fosters regional economic development, creates new job opportunities, and cultivates a more resilient and self-sustaining startup environment. For Moradi, this is where venture capital’s true impact transcends individual investments, creating a stronger, more dynamic pathway for innovation.
Investment Philosophy: Conviction Without False Certainty
Early-stage venture capital is inherently a domain of incomplete information. As Moradi candidly observes, "Incomplete data is my job description." Rather than attempting to eliminate uncertainty – an impossible task in nascent markets – his strategy focuses on judiciously separating assumptions that can be tested immediately from those that will only resolve over time. This involves rigorously identifying the conditions that must hold true, actively considering how those assumptions could be disproven, and meticulously evaluating the cost associated with achieving the next meaningful milestone.
Moradi’s strongest convictions typically center on three pillars: the caliber of the founding team, the validity of the customer problem being addressed, and the company’s demonstrated rate of progress. He exercises greater caution when it comes to predicting the precise timing of an emerging market or charting the exact path a company might eventually take to an exit. This disciplined approach becomes especially critical when a financing round gains rapid momentum, as a compelling founder and a competitive process can generate immense pressure to make a decision 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 accelerated decision-making.
In such scenarios, Cortado is prepared to deliberately slow down the process, bringing in independent scientific or technical experts for deeper evaluation. This additional diligence may either reinforce the firm’s conviction or reveal reasons to step away from an investment. Intriguingly, many of Cortado’s strongest founder relationships have begun with this very scrutiny, as it sharpens thinking, identifies potential risks early, and allows time to address them proactively. However, slowing the decision-making process does not equate to delaying responsiveness; communication and support remain paramount.
Moradi applies similar discipline to valuation. "A sensible entry price is a form of protection for the founder, employees, and investors alike," he asserts. While an aggressive valuation might feel like an immediate triumph, if a company’s subsequent progress fails to meet the lofty expectations attached to that number, the consequences can be severe. Such a mismatch can negatively impact founder ownership, dilute employee equity, constrain future fundraising options, and hinder a company’s ability to adapt. As Moradi sagely notes, "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 faith in a founder’s ambition; it is a strategic means to endow an ambitious company with the flexibility and time essential for long-term success.
Founder Support: Speed, Specificity, and Empathy
The Cortado Ventures team distinguishes itself through its deep operational experience, having collectively built, scaled, and exited companies across many of the industries in which the firm now invests. This firsthand knowledge profoundly shapes their approach to supporting founders, particularly when plans inevitably shift or difficult decisions emerge. Moradi encapsulates the essence of meaningful support with two words: "Speed and specificity."
"Answer in hours rather than days and show up with work already done instead of advice. Better yet, pick up the phone," he advises. This practical, hands-on philosophy means Cortado’s team is often found rebuilding a financial model alongside a founder, making a critical customer introduction, actively recruiting a senior executive, or taking responsibility for navigating a challenging board conversation. It also entails the courage to deliver uncomfortable truths when a company’s runway is shortening or its strategic direction requires a fundamental 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 Midcontinent ecosystem have matured, so too has the sophistication of its founder support. Portfolio companies now have access to a rich network comprising operating executives, industry specialists, advisers, prospective customers, coaches, investors, and other founders. The needs of entrepreneurs in the region have also evolved. While capital and the ability to attract additional investors were once paramount, today’s founders increasingly seek customer access, senior talent acquisition, specialized technical expertise, and candid, experienced guidance.
Crucially, the firm’s role is not to usurp control from the entrepreneur. Cortado understands that sometimes the most valuable contribution an investor can make is recognizing when not to intervene. "Other times," Moradi concludes, "being helpful means staying out of the way." This nuanced approach ensures that support is provided strategically, empowering founders rather than undermining their autonomy.
Building What Outlasts a Fund: A Vision for Enduring Impact
Mike Moradi firmly believes that a venture firm’s responsibility extends beyond the immediate scope of its own portfolio. "We must build things that outlast a single fund," he declares, articulating a vision for enduring impact that transcends the typical fund lifecycle. For Cortado, this translates into a concerted effort to strengthen the foundational connections among founders, funders, universities, corporations, and policymakers across the Midcontinent. Furthermore, it means actively fostering the formation and growth of other investment firms within the region, a testament to a collaborative spirit rather than a competitive one.
"This is not a zero-sum game," Moradi emphasizes. "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 also creates more opportunities for investors to collaborate and participate in promising companies, ultimately establishing a more durable bridge between regional innovation and national capital markets.
This commitment to ecosystem building, however, does not diminish a firm’s fiduciary responsibility to its limited partners. Moradi’s experience as a trustee and audit committee member for a state retirement system has profoundly reinforced the importance of directness 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, highlighting the dual imperative of strategic growth and prudent financial management.
Moradi also recognizes the NVCA as an indispensable part of the connective infrastructure supporting venture 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 journey to reach its intended customers and institutions. "NVCA helps each of us make policy concrete and stay on top of the issues that matter in D.C. and beyond," Moradi notes. Participation in the NVCA also provides Cortado with a crucial platform to bring a Midcontinent perspective into national dialogues about innovation, capital formation, and the future trajectory of the venture industry.
Expanding the Map of American Innovation
Mike Moradi hopes that Cortado Ventures’ story will help broaden the public’s understanding of the true landscape of American venture capital. While the industry’s largest firms often command the most media attention, a significant and vital portion of venture capital comprises smaller, specialized investors. These firms write early-stage checks into niche sectors, specific technologies, particular 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.
These specialized firms play an indispensable role in identifying founders before their markets become obvious, connecting specialized knowledge with essential capital, and guiding companies through the challenging chasm between a promising idea and a sustainable business. "The hardest work happens after the money moves," Moradi emphasizes, underscoring the deep engagement required in early-stage investing.
The confluence of new technologies is making this work even more impactful. Advancements in artificial intelligence, automation, advanced manufacturing, energy innovation, biotechnology, and space technology are dramatically lowering the cost of pursuing ambitious ideas. Small, agile teams can now tackle opportunities that once demanded the vast resources of large corporations or national programs. Many of these innovative teams are emerging precisely in locations intimately connected to the problems they are striving to solve.
This broader decentralization of venture capital across America carries profound implications. When investors actively look beyond familiar networks and engage with founders where critical industries operate, they facilitate the transformation of more ideas into viable companies, enable more technologies to reach the market, and empower more communities to participate robustly in the nation’s innovation economy. For Mike Moradi, the unwavering optimism ultimately rests with the founders themselves – those audacious individuals attempting what others deem impossible. "Never forget that we’re here for them. When we do this right, everyone, including humanity, wins."
Cortado Ventures stands as a testament to this vision, a pioneering firm expanding the map of American innovation by marrying deep industry insight with strategic capital and robust ecosystem building. The NVCA proudly counts Cortado Ventures among its members, recognizing its pivotal role in shaping the future of venture capital. To delve deeper into the firm’s mission and portfolio, visit cortado.ventures.
