In a significant spotlight by the NVCA’s "Meet a VC" series, Mike Moradi, co-founder and General Partner of Cortado Ventures, is highlighted for his instrumental role in expanding the geography of American innovation. Based in Oklahoma City, Cortado Ventures is strategically investing in seed-stage frontier technology companies across the U.S. Midcontinent, operating on a core conviction that deeply experienced founders, often overlooked by traditional venture hubs, are best positioned to revolutionize critical industries. This approach is not merely about identifying capital gaps but about actively cultivating a vibrant ecosystem where localized expertise meets strategic funding and robust support networks, ultimately redefining where the next wave of transformative companies will emerge.
A Founder’s Journey Forges a VC’s Philosophy
Moradi’s journey into venture capital is deeply rooted in his own extensive and often challenging experiences as a serial entrepreneur. A six-time founder, he has navigated the complexities of building and leading companies in technically intricate fields such as biopharmaceuticals and nanotechnology. His entrepreneurial path began unconventionally, as he departed from dental school to launch his first venture. This initial endeavor, though ultimately unsuccessful, served as a foundational lesson. Moradi recalls, "The lesson was to keep pushing past every obstacle, to not be discouraged by hearing the word ‘no,’ and to stay the course." This early setback instilled in him a resilience and unwavering commitment, qualities he now champions in the founders Cortado supports.
Subsequent ventures brought both rapid success and stark lessons. His second company achieved quick growth and was acquired by a Fortune 100 corporation, validating his drive. However, a later San Francisco Bay Area startup, despite securing an $18 million Series B financing round, teetered on the brink of failure before its eventual acquisition. This near-collapse delivered a critical insight: while capital can accelerate a company’s trajectory, speed without strategic direction can be detrimental. Moradi succinctly states, "A high valuation and a full bank account will happily let you scale the wrong thing." This experience underscored the importance of coupling entrepreneurial optimism with rigorous evidence, disciplined execution, and a clear understanding of the next crucial milestones a company must achieve. These hard-won lessons directly inform Cortado’s investment strategy today, emphasizing not just the technology itself, but also the sequence and timing of capital deployment to de-risk and validate assumptions rather than merely fuel unproven growth.
The culmination of these experiences led Moradi to co-found Cortado Ventures in 2020. Alongside a team comprising seasoned founders, CEOs, and operators, their collective aim was to establish the kind of venture firm they wished had existed during their own entrepreneurial careers – one that intimately understood the myriad decisions founders face and could offer contributions far beyond the initial financial injection. This "by founders, for founders" ethos has become a cornerstone of Cortado’s operational philosophy.
The Midcontinent Advantage: A New Frontier for Innovation
Cortado Ventures’ investment thesis is firmly anchored in the strategic potential of the U.S. Midcontinent. This region, often overlooked by the venture capital concentrated in coastal hubs, is ironically home to many of the nation’s most critical and foundational industries. Sectors like energy, aerospace and defense, healthcare, advanced manufacturing, mobility, and logistics are all deeply embedded in complex physical environments, established supply chains, and demanding customer relationships. Transforming these industries requires more than just a compelling software application; it demands an intricate, nuanced understanding of their operational mechanics and inherent challenges.
Cortado actively seeks out experienced technical founders who possess this profound industry insight. These individuals often have spent years working within hospitals, factories, laboratories, energy companies, aerospace programs, or logistics networks, allowing them to identify persistent problems and conceive innovative solutions from an insider’s perspective. Their deep-seated experience provides invaluable credibility with potential customers, critical foresight into implementation hurdles, and a practical knowledge base that would be exceedingly difficult to cultivate from an external vantage point.
The geographic location itself provides a distinct competitive advantage. The Midcontinent offers unparalleled proximity to these critical industries and a vast pool of potential customers eager for innovative solutions. Furthermore, the region boasts a technically skilled workforce, often trained at robust research institutions and universities that are increasingly fostering commercialization efforts. This ecosystem is further bolstered by complementary public funding initiatives and significantly lower company-building costs compared to the highly competitive and expensive coastal markets. Such factors enable startups to stretch capital further, conduct real-world piloting more efficiently, and achieve meaningful milestones with greater financial prudence.
Cortado’s diverse portfolio reflects the breadth of innovation emerging from this environment, spanning areas like space communications, industrial safety, critical infrastructure cybersecurity, advanced manufacturing, and disruptive solutions in healthcare, energy, and mobility. This strategy is not merely a philanthropic endeavor to fund undercapitalized regions; it is built on the firm conviction that proximity to hard, real-world problems inherently produces differentiated companies and, ultimately, strong financial returns. As Moradi asserts, "Talent is not concentrated anywhere in particular. Capital and networks have just been slower to distribute than talent has." For Cortado, expanding the geographic reach of venture capital is fundamentally about uncovering new sources of insight and innovation that traditional networks have historically overlooked, thereby democratizing access to venture funding and entrepreneurial opportunity.
Beyond Capital: Cultivating a Thriving Ecosystem
When Cortado Ventures first launched, Moradi initially believed that the primary constraint facing a nascent venture ecosystem was a simple shortage of capital. The firm rapidly demonstrated that promising companies could indeed be identified and funded within the region. However, as Cortado matured and gained deeper insights into the regional dynamics, Moradi’s perspective on the needs of founders evolved considerably. He realized that while capital is undoubtedly essential, it is far from sufficient. "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 reflects.
Founders require a multifaceted support system that extends well beyond a bankroll. This includes access to experienced operators who can guide them away from common pitfalls, early-adopter customers willing to pilot unproven technologies, patient investors prepared to bridge funding gaps between milestones, and a cohesive community where vital relationships can naturally form. As Moradi aptly puts it, "Money can accelerate a company. It cannot stand in for experience."
This crucial realization profoundly shaped Cortado’s expansive role within the broader Midcontinent ecosystem. Rather than reserving valuable relationships exclusively for its own portfolio companies, the firm actively works to connect founders with a wider network of funders, universities, corporations, policymakers, and technical experts. A prime example is its annual Midcontinent Venture Capital Summit, which convenes investors, limited partners, founders, and ecosystem leaders from across the country, fostering crucial connections and knowledge exchange. Cortado also collaborates closely with regional entrepreneurship organizations, such as The Verge, an Oklahoma City-based incubator and accelerator that provides vital company-building resources, specialized programming, and critical capital connections. Each of these interactions, whether it leads to a customer introduction, an advisory relationship, a new employee, a strategic collaboration, or a follow-on investment, collectively contributes to building the robust infrastructure necessary for more companies to successfully start and scale. For Moradi, this is where venture capital’s impact transcends individual investments, creating a stronger, more interconnected ecosystem that offers more entrepreneurs a viable path to company formation and allows capital, talent, and innovation to find each other more efficiently.
Disciplined Conviction in an Imperfect World
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 is to systematically manage it. He meticulously separates assumptions that can be immediately tested from those that will only resolve over time. He identifies the critical conditions that must be true for a venture to succeed, rigorously considers how those assumptions could be disproven, and carefully evaluates the cost associated with reaching the next meaningful milestone.
Moradi’s strongest convictions typically center on the founding team’s capabilities, the clarity and urgency of the customer problem being addressed, and the company’s demonstrated rate of progress. He maintains a more cautious stance regarding precise predictions of emerging market timing or the exact path a company might eventually take to an exit. This disciplined approach becomes particularly vital when financing rounds are moving rapidly. The allure of a compelling founder and the pressure of a competitive process can often create an impetus to make decisions before core investment assumptions have been thoroughly vetted. "A hard deadline is exactly when people stop asking uncomfortable questions," he observes. When necessary, Cortado will deliberately slow down the diligence process, bringing in independent scientific or technical experts to provide objective evaluations. This additional scrutiny can either solidify the firm’s conviction or reveal critical reasons to step away from an investment. Paradoxically, some of Cortado’s strongest founder relationships have begun with this rigorous scrutiny, as it sharpens strategic thinking and identifies risks early, when there is still ample time to address them effectively. However, slowing the decision does not equate to slowing the response or support once an investment is made.
Moradi applies a similar discipline to valuation. He believes that "A sensible entry price is a form of protection for the founder, employees, and investors alike." While an aggressive valuation might feel like an immediate victory, if the company’s subsequent progress fails to meet the inflated expectations tied to that number, the consequences can be severe. This can negatively impact founder ownership, dilute employee equity, constrain future fundraising options, and ultimately hinder the company’s ability to adapt to market changes. This balancing act is crucial, as excessively low valuations can equally stifle a company’s growth potential. "The right number buys you options for years. In boom times, people forget that financial crises happen," Moradi cautions. For Cortado, this discipline is not a reflection of a lack of belief in a founder’s ambition; rather, it is a pragmatic strategy designed to provide an ambitious company with the financial flexibility and time required to succeed through various market cycles.
Active Support: Speed, Specificity, and Empathy
Cortado Ventures’ team brings extensive operational experience to the table, having built, scaled, and successfully exited companies across many of the industries in which the firm now invests. This hands-on experience profoundly shapes how Cortado supports its founders, particularly when strategic plans inevitably pivot or difficult decisions arise. Moradi encapsulates this meaningful support with two key words: "Speed and specificity." He advocates for rapid responses, stating, "Answer in hours rather than days and show up with work already done instead of advice. Better yet, pick up the phone."
This active engagement can manifest in various forms: rebuilding a complex financial model, making a crucial customer introduction, assisting in the recruitment of 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 strategy demands a fundamental shift. Moradi draws on his own past as a founder in such meetings: "What helped was someone who lowered the temperature, told the truth to me and the board, and followed up after the meeting."
As both Cortado and the surrounding ecosystem have matured, the firm’s founder support has become increasingly sophisticated. Portfolio companies can now tap into a broad network of operating executives, industry specialists, expert advisors, prospective customers, coaches, fellow investors, and other founders within Cortado’s extensive network. The evolving needs of founders have also become apparent; while capital and the ability to attract co-investors were once paramount in a capital-scarce region, today’s founders increasingly seek customer access, senior talent, specialized technical expertise, and candid, honest guidance. Crucially, the firm’s role is not to usurp control from the entrepreneur. Sometimes, the most valuable contribution an investor can make is knowing precisely 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 extends beyond the confines of its own portfolio and the lifecycle of a single fund. He stresses, "We must build things that outlast a single fund." For Cortado, this translates into a proactive commitment to strengthening the connective tissue among founders, funders, universities, corporations, and policymakers throughout 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 ventures, ultimately establishing a more durable pathway between regional innovation and national capital markets. This ecosystem-building mandate, however, does not diminish a firm’s fundamental 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 being transparent and 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 emphasizes.
Moradi also recognizes the NVCA as a vital component of the broader connective infrastructure supporting firms and founders nationwide. Issues such as capital formation, research commercialization, immigration policies, government procurement, tax treatment, and securities regulations are not abstract policy debates; they have tangible, real-world impacts. These policies directly influence whether an emerging manager can successfully raise a fund, whether a startup can attract essential talent, and whether a groundbreaking new technology can ultimately 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 states. Furthermore, Cortado’s active participation in the NVCA provides a crucial 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 envisions Cortado Ventures’ story as a compelling narrative that can help reshape perceptions of American venture capital. The industry’s largest, most visible firms often garner the most attention, yet the vast majority of venture capital activity consists of smaller, specialized investors writing early checks into niche industries, specific geographies, particular demographics, or unique technological verticals. As Moradi aptly points out, "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."
These specialized firms play an indispensable role in discovering founders before their markets become obvious, connecting highly specialized knowledge with crucial capital, and guiding companies through the arduous period between a promising idea and a sustainable, scalable business. "The hardest work happens after the money moves," Moradi affirms. This work has become even more consequential with the advent of new technologies. Artificial intelligence, advanced automation, sophisticated manufacturing techniques, groundbreaking energy innovations, transformative biotechnologies, and burgeoning space technologies are dramatically reducing the cost and complexity of pursuing ambitious ideas. Small, agile teams can now tackle opportunities that once demanded the vast resources of large corporations or national government programs. Many of these pioneering teams will naturally emerge in regions like the Midcontinent, places that are intimately connected to the very problems they are striving to solve.
This is the profound, broader impact of strategically expanding venture capital across America. When investors look beyond established networks and meet founders where critical industries operate, they facilitate the transformation of more innovative ideas into viable companies. They enable more groundbreaking technologies to reach the market, and they empower more communities to actively participate in and benefit from 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." Cortado Ventures, as a proud member of the NVCA, stands as a testament to this powerful vision, actively charting a new course for American innovation from the heart of the Midcontinent.
