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Ohio Third Frontier Fund

Ohio created the Third Frontier Fund in 2002 as a ten-year, $1.6 billion bond-funded initiative to rebuild the state's technology economy after manufacturing...

Ohio Third Frontier Fund logo

Ohio Third Frontier Fund

Ohio created the Third Frontier Fund in 2002 as a ten-year, $1.6 billion bond-funded initiative to rebuild the state's technology economy after manufacturing decline; voters renewed it in 2010, extending operations through 2015, and the program continues under the Ohio Department of Development. Lydia Mihalik, the department's director, chairs the Third Frontier Commission, which allocates capital alongside Governor Mike DeWine's office. Third Frontier deploys through grants, loans, and equity investments across technology validation, startup formation, talent attraction, and applied research infrastructure. The portfolio spans Industrial Tech, Enterprise Software, and Digital Health — it funded Wright Centers of Innovation at research universities including The Ohio State University, and backed the development of the Arcade Innovation Hub in Dayton. The fund co-invests with JobsOhio, the state's private economic development corporation, and participates in the JobsOhio Network of regional groups, creating a layered capital stack that combines public grant dollars with private-sector deal sourcing and portfolio oversight. No headcount or total deployment figure is publicly reported, though the initiative has disbursed well over $2 billion across its lifespan. Adjacent structures include the Innovation Ohio Loan Fund and a relationship with the Bon Secours Mercy Health Foundation, which operates philanthropic programs in Ohio. In a summer 2025 news release, the Ohio Department of Development announced the Ohio River Summit, reinforcing the administration's focus on economic development tied to waterway infrastructure — a signal that Third Frontier priorities remain aligned with broader state strategy under the DeWine administration. Third Frontier's most significant structural differentiator is its dual role as an innovation grant-maker and a limited direct equity investor. Unlike a traditional pension or endowment, it does not report a consolidated portfolio value and is not measured by investment returns. Its mandate is explicitly to produce Ohio-based jobs, patents, and company formation — making it one of the few US state-level vehicles that competes directly with federal SBIR/STTR programs while maintaining the authority to take equity positions in spinouts.

General information

Firm type

Government / Public Body

Year founded

2002

Location

Region

North America

Country

United States

City

Columbus

Corporate office

Columbus, OH, United States

Principals

Lydia Mihalik

Director of the Ohio Department of Development and Chair of the Ohio Third Frontier Commission

Mike DeWine

Governor of Ohio

Sector focus

Industrial TechEnterprise SoftwareAI/MLDigital HealthEnergy Transition & Renewables

Frequently asked questions

Who runs investment decisions at Ohio Third Frontier Fund?

The Ohio Third Frontier Commission, chaired by Ohio Department of Development Director Lydia Mihalik, approves all grants and investments. Governor Mike DeWine's administration sets the initiative's strategic direction, and the Commission relies on staff within the Department of Development for due diligence and portfolio management.

Is Ohio Third Frontier Fund structured as a single family office or does it operate more like a venture firm?

Neither. It is an economic development program administered by the State of Ohio. Third Frontier makes grants, forgivable loans, and occasionally equity investments in technology startups and research infrastructure — its mandate is job creation and company formation in Ohio, not financial return.

Does Ohio Third Frontier Fund participate in fund commitments or only direct deals?

Third Frontier predominantly makes direct grants and co-investments into companies, university programs, and physical innovation infrastructure. It does not operate as a limited partner committing to external venture capital funds; the program's capital is deployed directly into Ohio-based ventures and research centers.

How is Ohio Third Frontier Fund related to JobsOhio?

JobsOhio is Ohio's private, nonprofit economic development corporation funded by state liquor profits. It works in tandem with Third Frontier — JobsOhio often handles later-stage business attraction and incentives, while Third Frontier focuses on early-stage technology grants, research commercialization, and startup formation. The two entities co-invest and coordinate on regional economic development through the JobsOhio Network.

Where does Ohio Third Frontier Fund's capital come from?

The initial $1.6 billion capitalization was raised through state general obligation bonds authorized by Ohio voters in 2002. A 2010 renewal referendum extended the program. Ongoing allocations are funded through state general revenue appropriations approved by the Ohio legislature.

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