From Columbus Roots to Venture Success – A Look at Drive Capital’s Strategic Wins
Drive Capital: A Midwest Venture Firm With a Bold Second Act
Drive Capital, founded in Columbus in 2012, faced serious internal challenges when its two co-founders, Chris Olsen and Mark Kvamme, went their separate ways.
What could have been the end of the road for the venture firm turned out to be the start of a new chapter.
Today, Drive is delivering strong returns and proving that venture success doesn’t have to live on the coasts.
A $500M Return in One Week
In May, Drive Capital made headlines by returning $500 million to its investors in just one week.
Here’s what happened:
- $140 million in Root Insurance shares were distributed.
- Shortly before that, Drive exited from Thoughtful Automation and another unnamed company.
Chris Olsen, now the firm’s sole managing partner, called this level of liquidity rare in today’s market:
“I’m unaware of any other venture firm having been able to achieve that kind of liquidity recently.”
A Strategic Pivot After a Co-Founder Departure
The firm faced tough times in 2021 when Olsen and Kvamme split.
Kvamme went on to launch the Ohio Fund, focusing on broader investments across the state, including real estate and infrastructure.
Olsen stayed with Drive and refined its approach. Instead of chasing billion-dollar unicorns, Drive focused on realistic exits and larger ownership stakes in the companies it backed.
Betting on Smart, Sustainable Exits
While many venture firms obsess over $50B+ valuations, Olsen sees more value in aiming for $3B exits.
Here’s why:
- Only 12 companies in the U.S. have exited above $50 billion in the last 20 years.
- But 127 IPOs have happened at $3 billion or more.
- Hundreds of mergers and acquisitions occur in that same range.
That’s where Drive places its bets.
For example, the Thoughtful Automation exit — though below $1B — was described by Olsen as “near fund-returning.”
The company was sold to private equity firm New Mountain Capital and merged into a new platform, Smarter Technologies.
Drive had a major ownership stake in Thoughtful Automation — far higher than a typical Silicon Valley VC.
“We were the only venture firm who invested in that company,” said Olsen.
Currently, Drive is the sole venture investor in about 20% of its portfolio companies.
Wins, Losses, and Lessons
Like most firms, Drive has seen both highs and lows.
Notable Successes:
- Duolingo: Backed early before revenue. Now worth nearly $18 billion on the NASDAQ.
- Vast Data: Valued at $9 billion in 2023, and still growing.
- Root Insurance: Despite a rough IPO, Drive profited on the recent share distribution.
Major Setback:
- Olive AI: Raised over $900 million and hit a $4 billion valuation — before collapsing and selling off assets in a fire sale.
Despite the Olive AI setback, Drive’s overall strategy is working. It focuses on startups outside the typical tech hubs, betting on regional strength and market knowledge.
Investing Beyond Silicon Valley
Drive now has team members in six cities:
Columbus, Austin, Boulder, Chicago, Atlanta, and Toronto.
That’s intentional. Many of Drive’s founders are building companies outside California — and Olsen believes they’re stronger for it.
“Early-stage companies based outside Silicon Valley have a higher bar,” Olsen explained.
“They have to be a better business to earn a venture investment.”
Drive also looks for startups that apply modern tech to traditional industries.
A few examples:
- Autonomous welding technology
- Innovative dental insurance platforms
- AI for healthcare process automation
This approach aligns with Olsen’s belief that America’s $18 trillion economy offers plenty of opportunity beyond Silicon Valley’s hot startups.
What’s Next for Drive Capital?
Drive is still investing from its $1 billion fund raised in 2022, with about 30% of that capital left.
The firm oversees $2.2 billion in total assets under management and claims its top funds have delivered over 4x net returns — and growing.
But the real win may be in how it’s changed the narrative about the Midwest as a tech hub.
This week, that belief got a boost when Peter Thiel, Palmer Luckey, and others announced Erebor, a crypto-focused bank to be based in Columbus.
“When we started Drive in 2012, people thought we were nuts,” Olsen said.
“Now you’re seeing the smartest people in tech opening big presences in new cities.”
🚀 Final Thoughts
Drive Capital is proving that world-class venture returns don’t require a Sand Hill Road address.
By focusing on realistic exits, regional strength, and larger ownership stakes, the firm is carving out its own playbook — and finding success in doing so.
As Silicon Valley becomes just one of many hubs, Drive’s story shows that the next generation of unicorns may rise from unexpected places.