Is Indiana Facing VC Crisis?

Posted: Updated:
INDIANAPOLIS -

By many measurements, Indiana's technology sector is thriving. Deal flow, angel investing and the tech support system and infrastructure are perhaps the best they've ever been. Just last week, a national report showed venture capital investment in Indiana surged in 2017. But Allos Ventures Managing Director Don Aquilano says a lack of early stage VC could be a headwind for the state’s tech momentum, calling it a potential crisis situation. "We may be at an all-time low with respect to available capital from local investors in the state," said Aquilano. "That's the missing link, we have everything else."

In an interview on Inside INdiana Business with Gerry Dick, Aquilano said a dearth of early-stage VC can have two outcomes for emerging companies.

Allos, which invests exclusively in early-stage companies, has worked with many of Indiana’s most promising tech companies, including Lessonly, Octiv and Emplify, to name a few. The firm hopes to raise a new fund this year, but is right now out of the market, having completed its five-year new company investment phase.

Despite his concern, Aquilano says he is encouraged by efforts to attack the issue, in particular the state’s newly-created Next Level Indiana Trust Fund, which will target $250 million to support high-growth companies.

Aquilano says he is very confident things can turn around. "Absolutely, this has been done before in Utah, this has been done in Michigan, this has been done in Ohio... different flavors... and has had a significant impact," said Aquilano. "There's 12 local venture capital firms in Ohio, 13 or 14 in Michigan, and it's created a number of great, early-stage ventures that are growing nicely and creating great, sustainable jobs."

  • Perspectives

    • Tax Planning: Now’s the Time to Tackle It!

      Year-end is still months away, but smart investors have already begun their tax planning. Spending time analyzing your capital-gain situation could benefit you come next April 15th, no matter what investment vehicles you use - individual securities, mutual funds, exchange traded funds, or others. Here's how…

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Wesemann Hall at the Valparaiso University Law School (photo courtesy Tony V. Martin/The Times of Northwest Indiana)

      Valpo School of Law Transfer Denied

      A proposal to transfer Valparaiso University's law school to another university has been shot down. The Tennessee Higher Education Commission has denied the transfer to Middle Tennessee State University, which would have led to the creation of a College of Law at the school. 

    • Harris Corp. employs nearly 500 at its Fort Wayne facility.

      Planned Defense Mega-Merger Involves Fort Wayne Operation

      A defense industry contractor with a presence in Fort Wayne has announced a merger agreement. Florida-based Harris Corp. (NYSE: HRS) and L3 Technologies Inc. (NYSE: LLL) in New York say the combination will create the sixth-largest defense company in the country. In early-2015, Harris completed the $4.75 billion acquisition of Exelis, a long-time manufacturer of military radio technology in Fort Wayne. Shortly after the acquisition, Harris consolidated...

    • Henkel Corporation Acquires Muncie-Based Company

      Muncie-based Magna-Tech Manufacturing has been acquired by Henkel Corporation. Henkel is the U.S. subsidiary of Henkel AG &Co. KGaA in Germany.
    • Daniels Envisions Purdue, Region as 'Cooler Place'

      Purdue University President Mitch Daniels says a more than $1 billion live, work, play development on the West Lafayette campus will be a magnet for attracting and keeping top talent in the region. The Discovery Park District is part of a 30-year vision to transform the west side of the Purdue campus and create a "preeminent environment" for educational, economic, cultural and community activities in the region.

    • More Indiana Sears, Kmart Stores to be Cut

      Multiple Sears and Kmart stores throughout Indiana will be victims of the latest round of closures prompted by the parent company's bankruptcy filing. Illinois-based Sears Holdings Corp. (Nasdaq: SHLD) says a total of 142 locations will be shuttered as part of efforts to return to longterm profitability and competitiveness. Liquidation sales are slated to begin soon and the stores are expected to close by the end of the year. In its most recent earnings report, the company announced...