Indianapolis-based venture capital firm Allos Ventures has announced a $52 million close of its latest fund, Allos III.
Allos focuses on investing in early-stage software and tech-enabled business service companies, especially those in the Midwest.
“With our third fund, we’re focused on continuing to support high-growth, Midwest software companies, as well as expanding our portfolio to new areas of the Midwest and entrepreneurs,” said Don Aquilano, co-founder and managing director at Allos.
Aquilano says the Midwest eco-system is thriving for investors and startup companies.
“Experienced entrepreneurs and founders with deep subject matter expertise are at the heart of our investments — companies able to scale rapidly and attract top talent from across the country,” said Aquilano.
Talent is also drawn by the affordability of the Midwest, especially Indiana.
“They don’t necessarily want to go to the coasts where the costs are going to be two and three times higher the cost of living,” said Managing Director David Kerr.
Kerr says the region also offers a large number of Fortune 500 companies with headquarters in the Midwest.
“When you think about having a business enterprise software company, that’s selling to large companies, having access and proximity to those company headquarters, it’s useful to understand what problems they have and then work with them on a proof of concept,” explained Kerr.
The firm has already invested in eight startup companies of which five are based in Indianapolis, including Docket, Encamp, PERQ, Sharpen, and 120WaterAudit.
“The funding from Allos Ventures, along with the supportive tech community they have helped form in the Midwest, brings us that much closer to our goal of positively impacting our nation’s public health,” said Megan Glover, chief executive officer of 120WaterAudit. “We are striving to build software and solutions to improve the quality of drinking water across the US. This is no small feat and we could not do it alone.”
In an interview with Inside INdiana Business, Allos Ventures Managing Director David Kerr explains why VC investors focus on the Midwest.