Funding the Stages of a Hardtech Company

Building a hardtech company is capital intensive, but it also builds durable value. Indiana’s founders are learning how to balance product development with strategic financing, and Elevate Ventures continues to play a critical role in helping them navigate that journey. This panel brought together investors and ecosystem experts to unpack what it takes to raise capital at each stage, from early validation to full-scale manufacturing.

Moderated by Nicholas Kuhn, the panel featured Jeron Peoples of the Applied Research Institute, Bob Kirch of Heartland Ventures, and Theo Lim of Moderne Ventures. Together, they provided perspectives spanning public-private partnerships, venture capital, and corporate-backed innovation funds. Each panelist brought a unique lens to how Indiana companies can leverage capital to move from prototype to production and beyond.

Session Overview

The discussion opened with an acknowledgment of the unique challenges of funding hardtech. Unlike software startups, hardware companies face high upfront costs, longer R&D timelines, and slower iteration cycles. The panelists agreed that transparency and data driven storytelling are the keys to investor confidence.

They explored the distinct phases of funding. In the early stage, founders should focus on non-dilutive capital, grants, and programs that support prototyping and validation. As products mature, founders can pursue seed and Series A rounds that align capital with clear technical and commercial milestones.

Panelists emphasized the importance of timing. Raising too early can distract teams from product validation, while waiting too long can leave companies vulnerable to missed opportunities. 

The group also discussed the critical role of manufacturing readiness in investment. Investors want to see that founders understand their cost structure, supply chain strategy, and scalability before committing large checks. This operational literacy distinguishes mature hardtech teams from those still testing hypotheses.

Key Takeaways

• Align funding with milestones. Raise capital to achieve measurable progress, not to buy time. Each round should correspond to a clear technical or market inflection point.
• Leverage non dilutive sources early. Grants, state programs, and partnerships can reduce risk and extend runway before venture capital comes into play.
• Tell a complete story. Investors need to see a balance between vision and execution. Combine your technical expertise with a business narrative grounded in data.
• Understand capital efficiency. Know your unit economics, gross margins, and manufacturing costs early to show scalability.
• Choose the right investors. Seek partners who understand hardtech timelines and have experience with capital intensive models.
• Plan for manufacturing readiness. Demonstrate supply chain relationships, prototype costs, and clear production plans to reduce perceived risk.
• Use funding to build resilience. Capital isn’t just fuel for growth—it’s insurance against volatility in markets and supply chains.

Why It Matters

For Indiana’s hardtech community, access to capital is both a challenge and an opportunity. As investors look beyond software for defensible, real world innovation, Indiana’s manufacturing ecosystem provides the credibility and capability needed to attract capital. This session reminded founders that financing isn’t just about the check size; it’s about the strategy behind every dollar.

Elevate Ventures has long recognized that the state’s future depends on building companies that make tangible things—clean energy systems, medical devices, advanced materials, and beyond. By equipping founders with both funding and know how, Elevate is helping to close the capital gap and accelerate the next wave of high impact innovation.

Closing Reflection

The funding conversation highlighted that building a hardtech company isn’t just about innovation—it’s about endurance. Founders who plan, execute, and communicate effectively attract investors who share their vision for impact. In Indiana, that alignment between innovation and investment is shaping an ecosystem where capital and creativity grow together.

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