The Journal Gazette
Friday, September 03, 2021 1:00 am

Investment in Indiana on rise in '21

Report: Tops all of '19, '20

SHERRY SLATER | The Journal Gazette

Venture capital investment in Indiana companies in the first half of this year exceeded the full-year investments recorded in both 2020 and 2019, according to a report released Thursday by Elevate Ventures.

Even so, the Hoosier State received less than one-half of 1% of the country's total venture capital investment dollars. Ohio companies received double Indiana's amount, with 0.8% of the U.S. total.

Indianapolis-based Elevate Ventures divided Indiana into 13 regions in its report, 1H 2021 Indiana Venture Report. Companies operating in the northeast region – which comprises LaGrange, Steuben, Noble, DeKalb, Whitley and Allen counties – received $4 million in investment in five deals.

Indianapolis, in the central region, received $333 million in 45 total deals.

The 10 largest investments were all made in the central, west central and south central regions. The report said investment activity in those areas was likely driven by university efforts to develop ventures.

Much of the state's $708 million total as of June 30 was invested in later-stage deals, officials said. Ten such investments greater than $10 million were made in the first six months of 2021 as compared with four made during the first half of last year.

“The rise in later-stage deal activity was driven by an influx of out-of-state investment and pent-up demand from the post-pandemic recovery,” according to a news release.

Chris LaMothe, Elevate Ventures CEO, said the data shows Indiana is making “a substantial recovery” following the coronavirus pandemic.

“Our state has emerged as a significant player in the regional and national venture capital industry, and we anticipate more success in our continued efforts to support innovation and drive economic growth,” he said in a statement.

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