Drive Capital raises $250 million to invest in Midwest startups

Posted Feb 4, 2014

Great news for Midwest-based companies! Drive Capital has finished raising an inaugural $250 million fund. Drive was founded by former Sequoia Capital partners Mark Kvamme and Chris Olsen. Drive Capital has already invested in several companies that focus on technology and healthcare. Drive Capital has put money into Roadtrippers, CrossCHX, Channel IQ, and FarmLogs.

Drive Capital currently employs 7 people and the company is based in Columbus, Ohio. Olsen is originally from Cincinnati. Kvamme was brought back to the Midwest when Ohio governor John Kasich brought him in for a cabinet role. He did not work long in the role because an advocacy group filed a lawsuit based on the grounds that Kvamme was a California resident. Kasich made him the president of JobsOhio after the lawsuit was filed to help keep companies and jobs in the state. In the fall of 2012, he decided to start Drive Capital with Olsen.

?I started to see all this opportunity in the Midwest and in Ohio and got really excited about the companies,? stated Kvamme in an interview with The New York Times. ?What was clear to me was they were really lacking Silicon Valley-style venture capital.?