Indianapolis-based venture capital firm Allos Ventures has announced the first closing for its latest fund, Allos III. The firm says the fund will continue its focus on early-stage B2B software and tech service companies in the Midwest.
Allos says the fund will mostly target leading Series A and B rounds of funding, but will also take part in smaller startup rounds with seed-stage investors.
Co-founder and managing partner Don Aquilano says the fund allows Allos to continue investing in "passionate, Midwest entrepreneurs who build innovative and disruptive companies." Aquilano leads Allos with fellow VC and Saas veterans John McIlwraith and David Kerr.
The new fund’s first investment is in Indianapolis-based online-guided shopping software platform PERQ, which uses artificial intelligence to engage customers and increase online sales. Money from the fund came from sources including the Next Level Indiana Fund, the Indiana University Foundation and tech leaders including First Internet Bank Chief Executive Officer David Becker and Lumavate CEO Mark Hill.
Allos says it has invested in more than 20 tech companies since it launched nine years ago. It has worked with companies including Indianapolis-based Octiv, which was acquired by Conga last year and Cincinnati-based Assurex Health, which was acquired by Myriad Genetics for $290 million. Current investments include Lessonly, Emplify and Scale Computing, among others.