Indianapolis-based TechPoint has released its venture capital report for 2020, which shows the state ended the year on a high note despite the pandemic. Indiana tech companies reported more than $174 million in publicly-disclosed VC last year, the majority of which came in the fourth quarter.
In a recent interview with Inside INdiana Business, TechPoint Chief Executive Officer Mike Langellier said the pandemic did cause a big drop in VC investment.
“In the onset of the pandemic, venture capital firms absolutely did pull back,” said Langellier. “There was a lot of uncertainty and in times of uncertainty, investors oftentimes pull back to assess and also to determine, ‘What degree of impact is this pandemic going to have on our existing portfolio of companies? Am I going to need to divert more funding to them to keep them strong through this time?'”
The $174 million total for 2020 is about half of what tech companies reported in 2019. However, the number is still higher than 2018’s total of $147 million.
TechPoint says 71 Hoosier tech companies collected investments from venture capital funds, private equity funds, or growth funds. Among the biggest raises are Indianapolis-based Scale Computing, which raised $30 million near the end of the year, and Realync in Carmel, which raised $22 million.
The nonprofit growth accelerator for Indiana’s tech sector adds Indy-based cybersecurity firm Pondurance received what it called a “significant investment,” however the exact dollar figure was not publicly disclosed.
You can connect to TechPoint’s VC Report by clicking here.
Langellier says the pandemic did cause a big drop in VC investment.