Elevate Ventures 1H 2020 Indiana Venture Report
Venture capital investment in Indiana companies was higher in the first half of 2020 than in the first half of 2019 despite the COVID-19 pandemic and global recession, according to a report from Elevate Ventures.
The number of deals increased 74%, to 92 deals, over the 53 deals in the first six months of 2019. Strong pre-seed deal count (<$500,000 rounds) was largely driven by the number of investments made through the Elevate Ventures Nexus Pitch Competition. Seed through later-stage deal counts ($500,000-$10 million+ rounds) remain on par with 1H 2019 activities.
Indiana investment overcame not only the pandemic and recession but also venture capital market uncertainties experienced nationwide in Q2 2020. Only Illinois showed a greater increase among Great Lakes states.
The 1H 2020 Indiana Venture Report provides a mid-year assessment of venture investment activity in Indiana. While the majority of venture capital activity in the state focuses on technology, the report includes all sectors. New to the report this year is a national and regional analysis on the impact of the COVID-19 pandemic on venture investment.
Other findings from the report include:
- The majority of VC investors saw deal flow on par with 2019 and anticipate similar results for the remainder of 2020.
- Despite strong deal count, deal size and investment in Indiana lagged behind other states.
- The first half of 2020 has already surpassed mid-year activity in many prior years.
- If current momentum continues, Indiana could exceed 2019 activity in 2020.
- Deals valued under $500,000 made up nearly 60% of all activity.
Elevate Ventures CEO Chris LaMothe sees the activity as an indication of growth, innovation and new jobs.
“While the COVID-19 pandemic has affected venture ecosystems locally and nationally, we’re pleased to see such a strong start to 2020,” said LaMothe. “However, in order to keep up this momentum, we all need to work together to prioritize entrepreneurship and high-growth businesses across the state, which provide a critical pillar to building successful communities.”
The primary source of investment information used in the 1H 2020 Indiana Venture Report was PitchBook Data Inc. in conjunction with Elevate Ventures’ proprietary deal information and deal data submitted by our co-investment partners. Data was also collected from BioCrossroads, Gener8tor, TechPoint, the U.S. Bureau of the Census, the Bureau of Economic Analysis, Tax Foundation, Crunchbase Inc., the Missouri Economic Research and Information Center, Collision from Home, Industry Ventures, and Sandalphon Capital.