Drive Capital’s Midwest Success Story: Thriving After a Founder Split

Drive Capital, a Columbus, Ohio-based venture firm, has defied expectations by thriving after a significant internal upheaval—a co-founder split that could have derailed the company. Instead, the firm has emerged stronger, recently returning $500 million to investors in just one week, including a $140 million distribution from Root Insurance shares.

“I’m unaware of any other venture firm having been able to achieve that kind of liquidity recently,” said Chris Olsen, Drive’s co-founder and sole managing partner. This milestone marks a stark turnaround for a firm that faced existential questions just three years ago.

Drive’s strategy focuses on contrarian investments, avoiding the Silicon Valley obsession with “unicorns” and “decacorns.” Olsen emphasizes that while billion-dollar exits are rare, consistent mid-sized successes—like the Thoughtful Automation exit—can yield substantial returns. The firm often holds larger ownership stakes (around 30%) compared to typical Silicon Valley firms (10%), giving it greater influence and upside.

The firm’s portfolio includes wins like Duolingo and Vast Data, but also setbacks like the collapse of Olive AI. What sets Drive apart is its focus on non-coastal startups applying tech to traditional industries, such as autonomous welding and next-gen dental insurance.

With $2.2 billion in assets under management, Drive’s funds are performing in the top quartile, delivering strong returns. The firm’s belief in Columbus as a tech hub gained further validation with the announcement of Erebor, a crypto-focused bank backed by tech billionaires like Peter Thiel.

“When we started Drive in 2012, people thought we were nuts,” Olsen remarked. “Now, the smartest minds in tech are moving out of Silicon Valley.”