In a compelling spotlight from the NVCA’s "Meet a VC" series, Mike Moradi, co-founder and general partner of Cortado Ventures, offers a profound glimpse into the ethos driving his Oklahoma City-based firm. Cortado Ventures stands at the vanguard of a burgeoning movement, strategically investing in seed-stage frontier technology companies across the U.S. Midcontinent, driven by a conviction that groundbreaking innovation is not confined to traditional coastal hubs. The firm’s core thesis is elegantly simple yet profoundly impactful: the most effective transformers of critical industries are often those who have intimately navigated their complexities for years. By meticulously connecting these experienced founders with essential capital, discerning customers, and an expansive network of support, Cortado Ventures is actively expanding the geographical footprint where American innovation can firmly take root and flourish. This approach signals a significant shift in the venture capital landscape, challenging preconceived notions about where talent resides and where future economic engines will emerge.
A Founder’s Journey: Lessons Forged in the Crucible of Entrepreneurship
Mike Moradi’s path to venture capital is not one paved with theoretical models but etched with the tangible experiences of a serial entrepreneur. His journey into the high-stakes world of company building commenced not in an accelerator, but after a pivotal decision to depart dental school, driven by an insatiable entrepreneurial spirit. This audacious leap led to his first startup, an endeavor that, by his own candid admission, ultimately failed. However, this initial setback was not a deterrent but a crucible, forging an unyielding resilience and an enduring commitment to his vision. Moradi distilled a crucial lesson from this early experience: the imperative to relentlessly push past obstacles, to remain undeterred by rejection, and to steadfastly stay the course when others might falter. This foundational understanding of perseverance in the face of adversity became a cornerstone of his future endeavors and, later, his investment philosophy.
His subsequent ventures painted a more successful trajectory, yet each carried its own invaluable lessons. One company achieved rapid growth and was successfully acquired by a Fortune 100 enterprise, validating his entrepreneurial acumen. A later San Francisco Bay Area startup, while also eventually acquired, faced a near-catastrophic downturn even after securing a substantial $18 million Series B financing round. This harrowing experience delivered a different, equally critical insight: while capital undeniably accelerates a company’s trajectory, such speed is only advantageous when the business is moving in the correct direction and possesses genuine readiness for scalable growth. Moradi powerfully articulates this learning, stating, "A high valuation and a full bank account will happily let you scale the wrong thing." This realization underscored the delicate balance between entrepreneurial optimism and the disciplined application of capital, emphasizing the need for evidence-based decision-making and a clear understanding of what a company truly needs to prove next. These deeply personal experiences as a founder, navigating both triumph and tribulation, would later become the bedrock of Cortado Ventures’ "built by founders, for founders" philosophy.
Redefining Venture: Cortado’s Strategic Entry into the Midcontinent
Armed with this profound operational insight, Moradi co-launched Cortado Ventures in 2020 alongside a distinguished team of seasoned founders, CEOs, and operators. Their collective mission was clear: to construct the very firm they had wished existed during their own entrepreneurial careers – a firm that possessed an intrinsic understanding of the multifaceted decisions founders confront and could offer contributions extending far beyond a mere initial investment. Cortado Ventures was conceived as a firm that would not only provide financial backing but also serve as a strategic partner, mentor, and advocate, leveraging its team’s direct experience to guide nascent companies through the treacherous early stages of growth.
The timing of Cortado’s inception coincided with a growing national conversation about the geographic concentration of venture capital and the untapped potential residing outside traditional innovation hubs. For decades, the lion’s share of venture funding, often exceeding 75-80%, has flowed into just three major metropolitan areas: the Bay Area, New York City, and Boston. This concentration, while fostering intense innovation in these regions, inadvertently overlooked vast reservoirs of talent and critical industry problems in other parts of the country. According to a 2023 PitchBook-NVCA Venture Monitor report, while a majority of VC still goes to these top three markets, there has been a noticeable increase in deal activity and capital deployed to emerging ecosystems, including the Midcontinent, indicating a slow but steady decentralization of venture capital. Cortado Ventures positioned itself squarely within this burgeoning trend, specifically targeting the U.S. Midcontinent, a region often characterized by its robust traditional industries but historically underserved by venture capital. Their audacious goal was to bring the "Silicon Valley spark" – its innovative spirit, rapid iteration, and appetite for disruption – to this vital region, demonstrating that capital and networks could, and should, be distributed as widely as talent itself.
The Midcontinent Advantage: Proximity to Problem, Catalyst for Innovation
Cortado’s investment thesis is deeply rooted in the unique strategic advantages offered by the Midcontinent. This vast geographical expanse is not merely a collection of states; it is the operational heartland for many of the nation’s critical industries currently undergoing immense pressure to evolve and innovate. Sectors such as energy (oil and gas, renewables), aerospace and defense, healthcare, advanced manufacturing, mobility, and logistics are deeply embedded within complex physical environments, reliant on established supply chains, and bound by demanding customer relationships. The transformation required in these sectors demands far more than just a compelling software application; it necessitates a profound, nuanced understanding of their operational intricacies.
This is precisely where Cortado identifies its competitive edge. The firm actively seeks out experienced technical founders who possess this intrinsic understanding – individuals who may have dedicated years working within a hospital, a factory floor, a laboratory, an energy company, an aerospace program, or a complex logistics network. These founders, through their firsthand immersion, identify persistent problems and envision novel solutions. Their deep-seated experience grants them unparalleled credibility with potential customers, invaluable insight into the practical challenges of implementation, and a comprehensive knowledge base that would be exceedingly difficult to cultivate from an external perspective.
Beyond the human capital, the Midcontinent itself serves as a powerful investment advantage. The region offers unparalleled proximity to these critical industries and their potential customers, providing a natural laboratory for piloting and scaling solutions. It boasts a technically skilled workforce, often educated by strong regional research institutions and universities that are increasingly becoming centers for technology transfer and commercialization. Furthermore, the presence of complementary public funding initiatives and significantly lower company-building costs – including real estate, talent acquisition, and operational overhead – presents a compelling economic proposition for startups. This stands in stark contrast to the exorbitant costs associated with launching and scaling a company in established tech hubs.
Cortado’s portfolio vividly reflects the breadth and depth of innovation emerging from this fertile environment. Its diverse array of companies are deploying cutting-edge technologies across vital sectors, including space communications, industrial safety, critical infrastructure cybersecurity, advanced manufacturing, healthcare, energy transition, and future mobility solutions. The firm’s strategy is not predicated on a charitable notion that Midcontinent founders deserve investment merely due to historical undercapitalization. Instead, it is built upon the robust conviction that close proximity to "hard problems" — complex, real-world challenges embedded in foundational industries — inevitably produces highly differentiated companies and, consequently, strong financial returns for investors. As Moradi succinctly puts it, "Talent is not concentrated anywhere in particular. Capital and networks have just been slower to distribute than talent has." This philosophy underscores a broader national imperative: to unlock and empower talent wherever it exists, thereby expanding the entire map of American innovation.
Beyond Capital: Forging a Robust Innovation Ecosystem
When Cortado Ventures first embarked on its mission, Mike Moradi, like many early pioneers in nascent venture ecosystems, initially believed that the primary constraint facing the region was a simple shortage of capital. The firm rapidly proved that promising companies could indeed be identified and successfully funded within the Midcontinent. However, as Cortado matured and its understanding of the regional landscape deepened, Moradi’s perspective on the multifaceted needs of founders became far more expansive. His initial hypothesis evolved into a nuanced understanding, articulated through his statement: "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 profound realization reshaped Cortado’s role within the broader Midcontinent ecosystem. Moradi recognized that financial investment, while crucial, was merely one component of a thriving innovation environment. Founders require a holistic support system that includes experienced operators who can help them circumvent preventable pitfalls, discerning customers willing to adopt and champion unproven technologies, patient investors prepared to bridge the gaps between milestones, and a vibrant community where vital relationships can naturally coalesce. As Moradi emphasizes, "Money can accelerate a company. It cannot stand in for experience."
Consequently, Cortado Ventures has embraced a far more expansive mission, actively working to weave together a robust network of founders, funders, academic institutions, large corporations, policymakers, and technical experts. This collaborative approach ensures that these critical relationships are not reserved exclusively for its own portfolio companies but are accessible to the wider entrepreneurial community. A testament to this commitment is its annual Midcontinent Venture Capital Summit, a pivotal event that convenes investors, limited partners, founders, and ecosystem leaders from across the nation, fostering connections and facilitating deal flow. Furthermore, Cortado collaborates closely with regional entrepreneurship organizations and The Verge, an Oklahoma City-based incubator and accelerator that provides invaluable company-building resources, specialized programming, and crucial capital connections. Each interaction facilitated by these initiatives has the potential to help a founder secure a vital customer, enlist an expert adviser, recruit a senior executive, forge a strategic collaboration, or attract additional investment. Collectively, these relationships meticulously construct the underlying infrastructure that empowers more companies to successfully launch, scale, and thrive. For Moradi, this comprehensive approach signifies where venture capital’s true impact begins to transcend the boundaries of a single investment. A stronger, more interconnected ecosystem democratizes the path to company formation for a greater number of entrepreneurs, simultaneously generating more opportunities for capital, talent, and ground-breaking innovation to discover one another.
Disciplined Investing: Navigating Uncertainty with Conviction and Prudence
In the dynamic and often opaque world of early-stage investing, perfect information is a rare commodity. Mike Moradi candidly acknowledges this inherent challenge, stating, "Incomplete data is my job description." Rather than attempting to eliminate uncertainty – an often futile exercise in nascent markets – his investment philosophy centers on a disciplined approach to managing it. He meticulously separates assumptions that can be immediately tested and validated from those that will only resolve over a longer timeframe. This involves identifying the critical conditions that must hold true for an investment to succeed, rigorously considering how these conditions could potentially be disproven, and carefully evaluating the capital required to achieve the next meaningful milestone.
Moradi’s strongest conviction typically coalesces around three core pillars: the strength and vision of the founding team, the clarity and urgency 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’s maturation or charting the exact path a company may ultimately take to a successful exit. This strategic discipline becomes particularly crucial when a financing round is moving at an accelerated pace. The allure of a charismatic founder and the competitive pressure of a rapidly closing round can often create an environment where decisions are rushed before central investment assumptions have been thoroughly vetted. As Moradi wisely observes, "A hard deadline is exactly when people stop asking uncomfortable questions."
When necessary, Cortado Ventures actively slows down the investment process, bringing in independent scientific or technical experts to conduct thorough diligence. This additional scrutiny may serve to either significantly strengthen the firm’s conviction in the opportunity or, equally importantly, reveal compelling reasons to step away. Interestingly, Moradi notes that Cortado’s most robust founder relationships often originate from this very process of rigorous scrutiny. Such deep dives can sharpen strategic thinking, proactively identify potential risks, and allow for their mitigation while there is still ample time to address them effectively. However, slowing the decision-making process does not equate to a sluggish response; rather, it ensures a well-informed and strategic commitment.
Moradi applies the same unwavering discipline to company valuation. He asserts, "A sensible entry price is a form of protection for the founder, employees, and investors alike." While an aggressive valuation might initially feel like an immediate victory for a startup, if the company’s subsequent progress fails to meet the lofty expectations intrinsically linked to that valuation, the repercussions can be severe. These consequences can adversely impact founder ownership, dilute employee equity, constrain future fundraising options, and severely limit the company’s crucial ability to adapt to unforeseen market changes. He emphasizes that this principle "cuts both ways, as VCs can also strangle the life out of a company. Balance is key." A judicious valuation, conversely, "buys you options for years. In boom times, people forget that financial crises happen," Moradi cautions. For Cortado Ventures, this rigorous discipline is not indicative of a lack of belief in a founder’s ambition; it is, in fact, a strategic imperative designed to provide an ambitious company with the essential flexibility and vital time it needs to ultimately succeed.
The Art of Support: Speed, Specificity, and Strategic Non-Intervention
The Cortado Ventures team differentiates itself through its deep operational experience, having built, scaled, and successfully exited companies across many of the very industries in which the firm now invests. This invaluable firsthand experience profoundly shapes how Cortado supports its founders, particularly when unforeseen challenges emerge, plans pivot, or difficult decisions become unavoidable. Mike Moradi distills the essence of meaningful support into two potent words: "Speed and specificity." He elaborates on this ethos, advising, "Answer in hours rather than days and show up with work already done instead of advice. Better yet, pick up the phone."
This practical, hands-on approach translates into tangible actions. It might involve a Cortado team member rolling up their sleeves to rebuild a complex financial model, leveraging their network to make a critical customer introduction, actively recruiting a senior executive for a portfolio company, or taking direct responsibility for navigating a particularly challenging board conversation. Crucially, it also entails the difficult but necessary act of speaking uncomfortable truths when a company’s runway is shrinking or its strategic direction desperately needs to change. Moradi draws directly from his own past, remembering vividly what it felt like to be the founder in those tense meetings: "What helped was someone who lowered the temperature, told the truth to me and the board, and followed up after the meeting."
As Cortado Ventures and the surrounding Midcontinent ecosystem have matured, the firm’s founder support mechanisms have become increasingly sophisticated. Portfolio companies can now tap into a rich network comprising operating executives, specialized industry experts, trusted advisers, prospective customers, seasoned coaches, fellow investors, and other founders within Cortado’s extensive sphere. Concurrently, the evolving needs of founders themselves have shifted. While capital scarcity once made Cortado’s investment and its ability to attract additional investors particularly valuable, today, founders also increasingly seek customer access, senior-level talent, deep technical expertise, and candid, honest guidance from those who have walked similar paths. Yet, Cortado’s role is not to usurp control from the entrepreneur. In fact, Moradi underscores that sometimes the most valuable contribution an investor can make is simply knowing when not to intervene. As he succinctly puts it, "Other times, being helpful means staying out of the way." This nuanced understanding of when to lead and when to empower is a hallmark of Cortado’s founder-centric approach.
Building for Generations: The Enduring Legacy of Venture Capital
Mike Moradi firmly believes that a venture firm’s responsibility extends far beyond the confines of its own investment portfolio. His vision is expansive, encapsulated in his conviction: "We must build things that outlast a single fund." For Cortado Ventures, this means actively fostering and strengthening the connective tissue among founders, funders, universities, corporations, and policymakers throughout the Midcontinent. Critically, it also entails a commitment to nurturing the formation and growth of more investment firms within the region, rather than viewing them as competitors. Moradi articulates this collaborative spirit with clarity: "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 larger, more interconnected investment community yields manifold benefits. It provides founders with a broader spectrum of potential capital sources and expertise, increasing their chances of success. It creates more opportunities for investors to collaborate, co-invest, and participate in promising companies, thereby de-risking individual investments and amplifying collective impact. Over time, this collaborative ecosystem building establishes a more durable and efficient pathway between regional innovation and the broader national capital markets, ensuring that promising ideas in the Midcontinent can access the funding they need to scale globally.
Moradi’s commitment to ecosystem building is, however, balanced by an unwavering dedication to fiduciary responsibility to Cortado’s limited partners. Having served as a trustee and audit committee member for a state retirement system, he possesses a deep appreciation for the importance of being transparent and direct about investment risk, expected duration, and the potential for losses. "Ecosystem building matters, and it does not excuse any of us from being disciplined fiduciaries first," he asserts, underscoring the dual imperative of driving both regional growth and robust financial returns.
Moradi also recognizes the pivotal role played by organizations like the NVCA (National Venture Capital Association) as critical connective infrastructure supporting firms and founders across the entire country. Policy issues such as capital formation, the commercialization of research, immigration reform, government procurement policies, 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 top 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 states. Furthermore, Cortado’s active participation in the NVCA provides a vital platform to inject a Midcontinent perspective into national dialogues concerning innovation, capital formation, and the future trajectory of the venture industry, ensuring that the unique needs and opportunities of emerging ecosystems are represented at the highest levels.
Expanding the Map: The Future of American Innovation
Mike Moradi aspires for the story of Cortado Ventures to serve as a powerful testament to the vast breadth and diversity of American venture capital. While the industry’s largest, most well-known firms often command the lion’s share of public attention, he argues that the vast majority of venture capital activity is conducted by smaller, specialized investors. These firms are typically writing early-stage checks into niche markets, be they industrial, geographic, demographic, or otherwise. As Moradi astutely 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 absolutely essential role in the innovation ecosystem. They are uniquely positioned to discover founders and back groundbreaking ideas long before their markets become obvious or universally understood. They act as critical bridges, connecting specialized knowledge with the necessary capital, and providing crucial guidance to companies navigating the notoriously difficult period between a promising initial idea and the establishment of a sustainable, scalable business. "The hardest work happens after the money moves," Moradi emphasizes, highlighting the intensive, hands-on support required for early-stage companies.
The current technological epoch is making this work even more consequential. Rapid advancements in artificial intelligence, automation, advanced manufacturing, energy innovation, biotechnology, and space technology are dramatically reducing the cost and complexity of attempting truly ambitious ideas. Small, agile teams can now pursue opportunities that once demanded the colossal resources of large corporations or extensive national programs. Crucially, many of these innovative teams are emerging in locations intimately connected to the very problems they are striving to solve – a direct validation of Cortado’s Midcontinent thesis.
This is the profound, broader impact of strategically expanding venture capital across America. When investors consciously look beyond familiar networks and actively seek out founders where critical industries operate, they ignite a powerful chain reaction. More promising ideas evolve into viable companies, more transformative technologies successfully reach the market, and, fundamentally, more communities across the nation gain the opportunity to actively participate in and benefit from the country’s innovation economy. For Mike Moradi, the audacious founders who dare to attempt what others deem impossible remain the single greatest reason for enduring optimism. His ultimate vision for venture capital transcends mere financial returns: "Never forget that we’re here for them. When we do this right, everyone, including humanity, wins." Cortado Ventures, with its disciplined approach and unwavering commitment to the Midcontinent, stands as a beacon for this inclusive and impactful future of American innovation, and the NVCA proudly recognizes its vital contribution to the venture ecosystem. To learn more about Cortado Ventures, visit cortado.ventures.
