JumpStart Evergreen Fund

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A nonprofit evergreen seed-stage venture capital fund providing equity investment and mentorship to technology startups to accelerate commercialization and economic growth in Northeast Ohio.
What are the main aims and objectives?

The JumpStart Evergreen Fund aims to bridge the funding gap faced by early-stage, technology-based startups in Northeast Ohio by providing seed capital alongside mentorship and support. Its objectives include accelerating commercialization of innovative technologies, fostering high-growth ventures with large market potential, creating high-skilled jobs, and promoting sustainable regional economic development. The fund recycles returns to maintain a permanent pool of capital, contributing to a self-sustaining ecosystem of innovation financing with integrated business advisory to maximize portfolio success.

How does the program work?

The Evergreen Fund invests primarily equity or convertible notes in seed and pre-seed technology startups within 21 counties of Northeast Ohio. Target companies demonstrate validated market demand, experienced management, capital efficiency, and scalable business models in sectors such as software, healthcare, and medical technology.

Initial investments range from $250,000 to $1 million, deployed in tranches tied to milestone achievement. Each portfolio company is paired with a Venture Partner—an experienced entrepreneur or executive—providing strategic guidance, connections, and operational support.

Companies apply through an online process followed by rigorous due diligence covering product, market, team, and IP. Investments focus on companies poised to attract follow-on funding with significant addressable markets.

The evergreen structure means the fund reinvests capital returns to support continual new investments, sustaining a growing venture support network. Capital deployment is complemented with integration into JumpStart’s wider ecosystem services, including technical assistance and access to follow-on capital.

What is the overall cost?

The Evergreen Fund has been capitalized with over $50 million of patient capital, primarily from Ohio Third Frontier funds and regional stakeholders. Initially, $27 million was invested from 2004 to 2013; a $10 million recapitalization in 2013 expanded capacity. Subsequent awards increased fund size to its current ~$50 million level.

How was it implemented?

The fund was created in 2004 by JumpStart Inc., a regional venture development organization formed by the Greater Cleveland Partnership as part of an economic revitalization strategy in Northeast Ohio. Initially funded by the Ohio Third Frontier and other regional contributors, the fund aimed to systematize early-stage financing with integrated mentorship.

JumpStart developed the fund’s investment criteria, due diligence process, and Venture Partner mentorship model. Between 2004 and 2013, the fund invested in 76 companies, demonstrating proof of concept. Recapitalization followed in 2013 to increase funding availability.

The fund is managed by JumpStart’s investment team with continued expansion into complementary funds (NEXT Fund for later-stage, Focus Fund for minority and women entrepreneurs). Close collaboration with regional economic development initiatives supports target industry focus and ecosystem integration.

By July 2018, JumpStart had more than doubled the $27 million put into the first version of its Evergreen Fund, having invested in 76 startups,  33 of which were still active JumpStart portfolio companies.

The success of JumpStart's original Evergreen Fund has helped the organization fund new programs designed to help entrepreneurs, such as the Growth Opportunity Partners, a separate nonprofit that makes loans to small local businesses that have the potential to create good jobs, and the Plug and Play Cleveland health tech startup accelerator.  

What impact has been measured?

According to the 2024 impact report, the Evergreen Fund has invested in over 100 technology startups since inception, supporting significant regional economic development and innovation.

Portfolio companies have collectively generated substantial follow-on capital and exits. JumpStart reports over $15 billion in cumulative economic output from its supported ventures, with thousands of jobs created.

Specifically, from 2020 to 2024, JumpStart-supported companies generated $1.5 billion in economic output, created 10,700 jobs, and paid over $270 million in taxes.

 

What lessons can be learned?
  • Evergreen fund models provide sustainable, patient capital supporting long-term regional economic development.
  • Pairing capital with Venture Partner mentorship significantly enhances portfolio companies’ developmental success.
  • The Northeast Ohio regional focus enables deep ecosystem insight but limits broader geographic reach.
  • Sector concentration in software and healthcare may limit diversification benefits.
  • Reliance on public funds like Ohio Third Frontier raises sustainability questions as state funding priorities evolve.
  • Lack of comprehensive independent longitudinal evaluations limits detailed impact understanding.
  • The fund’s success underscores the importance of integrated finance and support models beyond capital alone.
  • Challenges remain in scaling models while maintaining personalized mentorship and strategic value-add.
Notes + Additional Context

With bank loans and venture capital unavailable to so many entrepreneurs, states and communities can develop innovative funding streams to promote entrepreneurship and to help support new businesses in their jurisdictions.

This fund example was highlighted  in America's New Business Plan, which calls states and localities to create competitive Entrepreneurial Capital Catalyst Grants to:

  • Create “evergreen” community investment funds that support new businesses as they move through the early stages of proof-of-concept and product development.
  • Build collaborative investment funds that engage established businesses to work with emerging businesses for joint product development and supplier relationships.
  • Support investment funds that spur the growth of new financial intermediaries — entrepreneurs creating capital to invest in other entrepreneurs — particularly those with innovative models such as revenue-based investing and profit-sharing.

CURATED BY

Cristina Fernandez

Director for Knowledge + Programming
Global Entrepreneurship Network
United States