In a bold move that could reshape the startup landscape, the city of Columbus, Ohio is betting big on becoming America's next premier destination for tech entrepreneurs. At the heart of this ambitious plan is a staggering $100 million investment spearheaded by serial entrepreneur Ratmir Timashev, who is convinced that the key to building successful B2B software startups lies not in the product, but in the sales.

Turning Columbus into a Tech Mecca

Timashev, the co-founder of the $5 billion cloud data protection company Veeam Software, is the driving force behind OH.io, a privately-funded initiative that aims to recruit 100 B2B software and AI startups from around the world and establish their U.S. commercial operations in Columbus. The twist? OH.io will provide these startups with in-house sales and go-to-market teams, taking a cut of their revenue instead of equity - a model Timashev has dubbed "Revenue-as-a-Service."

But Timashev's bet on Columbus goes even deeper. In 2023, he made the largest gift in Ohio State University's history - a $110 million donation to establish the Center for Software Innovation, which pairs engineering and business students with hands-on startup experience. Combined with the $100 million for OH.io, Timashev has now committed over $200 million to transforming Columbus into a tech powerhouse.

Leveraging Columbus' Advantages

What makes Columbus an attractive target for this massive investment? For one, the city has already demonstrated its potential as a thriving startup hub. Recent analysis by the Nasdaq Entrepreneurial Center has highlighted Columbus as one of the country's best regions for supporting fast-growth entrepreneurs, thanks to the presence of Ohio State's research engine, a decade of civic execution, and the arrival of major tech players like Intel and Amgen.

Additionally, Ohio's economic development arm, JobsOhio, has proven to be a powerful and coordinated force, providing startups with access to incentives, talent, and industry connections. As the recent $9.5 million federal funding for Columbus State's advanced manufacturing hub demonstrates, the state is willing to invest heavily in building the infrastructure to support its startup ecosystem.

A Risky but Promising Bet

The bigger picture here is that Timashev's gamble on Columbus represents a bold attempt to disrupt the traditional startup model. By providing startups with a turnkey sales and go-to-market solution, OH.io aims to address a critical pain point that has plagued many B2B software companies - the difficulty of scaling an effective sales organization. If successful, this approach could pave the way for more founders to build their businesses outside of traditional tech hubs like Silicon Valley.

Of course, the $100 million bet is not without its risks. Columbus will have to prove that it can attract top-tier talent and provide the resources and ecosystem necessary to nurture high-growth startups. But with Timashev's track record, the city's emerging advantages, and the state's commitment to supporting innovation, this ambitious plan just might pay off and transform Columbus into the next great American startup capital.