When John Huston considers the 1,000 companies Ohio has helped develop over the past 12 years, he thinks of tiny birds ready to take flight.

The question now, Huston says, is whether the most promising of those companies will soar or crash, leaving millions of wasted dollars in their wake because there was not enough money to keep them going.

A new report is fueling the concern: According to a survey by statewide lobbying group VentureOhio, Ohio-based venture capital firms aren't close to meeting even half of the need to keep these companies going. The risk is loss of innovative new business that's essential to creating high-paying jobs and powering economic growth.

"It would be so tragic if promising companies flame out because they can't raise the capital," Huston said.

Huston, manager of Ohio TechAngels Funds, and other investors are calling on the state to take action now. The state's reluctance to do so is creating a rare strain in its relationship with venture capital investors.

Investors are naturally alarmed by the thought of high-potential companies losing their momentum or moving out of state to get access to funding. It's in Ohio's best interest to keep supporting the startups it helps to create, investors say.

Taxpayers have plenty of skin in the game, too. The state has poured hundreds of millions of dollars into programs and organizations that helped create those 1,000 companies. Ohio will continue those efforts, but it is pushing the private sector to fill the funding gap.

Cities across the state have an interest in the outcome, too. In Cincinnati, public money has helped finance the Brandery, an accelerator that's helped entrepreneurs turn ideas into businesses that include ride-sharing for airport travelers, apps that make chores fun for children and lenses that click into multiple pairs of eyeglass frames.

Public money has helped CincyTech advise and invest in startups that use genetics to help doctors prescribe the right medication, and connect minority suppliers with large companies. The Queen City Angels investor group has leveraged public money to support companies that help seniors manage complex medication routines, and newlyweds capture photos from friends and family.

Similar activity has happened across Ohio in the past 12 years, leading to a crush of companies nearing the next phase of funding – called early stage – in which startups typically need $3 million to $5 million to commercialize products and continue building out management teams.

VentureOhio, launched in 2013, canvassed 28 investors and accelerators across the state in April and May. It found that at least 176 companies will need to raise more than $437 million of early-stage capital over the next 16 months to add jobs, expand operations and keep their competitive edge. Ohio-based venture capital firms aren't close to meeting 50 percent of the need, according to the report.

"If left unaddressed, this lack of capital will likely slow the growth of many of these companies, and some may move to other states where they can access further investment or seek to be acquired," said John McIlwraith, chair of VentureOhio and managing partner at Downtown's Allos Ventures.

David Goodman, director of the Ohio Development Services Agency and chairman of the Ohio Third Frontier Commission, interprets the results differently.

"I thought it was great that we saw a demand for capital. That's good news about Ohio's economy. We've got really smart, talented people with great ideas, and they're in need of capital," he said. "I don't think you should ever underestimate the role of the private sector and venture capital. That plays a significant – if not overwhelming – role."

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