The State of Venture Capital

Indiana founders are entering 2026 in a venture landscape shaped by shifting interest rates, tighter capital allocation, and renewed emphasis on building durable companies. The Predictions Workshop invited Myles Grote, Partner at Elevate Ventures, to provide a clear lens into how investors are thinking, what founders should expect, and where opportunity exists despite a more selective market. Grote’s perspective is grounded in daily engagement with early-stage companies across the state, giving him a front-line view into the signals shaping the year ahead.

Session Overview

Grote opened by acknowledging what many founders have felt directly: the fundraising environment has changed. Capital is still available, but investors are underwriting differently. The market has moved away from growth-first thinking and toward evidence-first evaluation. Deals are taking longer. Diligence is deeper. And founders must demonstrate sharper clarity around market focus, cost structure, and execution discipline.

He emphasized that the environment is not frozen, it’s recalibrated. Venture firms are still deploying capital, but with a stronger emphasis on efficient fundamentals, repeatable traction, and credible pathways to revenue quality. As he noted, investors today are “funding learning curves, not ideas,” placing weight on teams who can prove that they understand their market intimately and can operate with discipline despite uncertainty.

Grote also highlighted the rise of capital-efficient resilience, noting that many Indiana companies have weathered the last two years more effectively than their coastal peers. Lower operating costs, pragmatic scaling, and stronger alignment with customer needs have allowed many regional startups to extend runway and remain competitive. This resilience, he explained, is becoming a differentiator in itself.

Finally, he underscored a theme that echoed across the workshop: talent, markets, and capital are converging in new ways. Founders who understand how these forces intersect — and who can communicate that understanding clearly — will stand out in a venture environment defined by both caution and opportunity.

Key Takeaways

Investors are prioritizing evidence over narrative.
Founders must demonstrate traction, customer validation, and operational focus before pursuing meaningful capital raises.

Runway discipline is a competitive advantage.
Teams that maintain lean operations and extend runway are better positioned to weather slow deal cycles and negotiate from strength.

Market clarity matters more than ever.
A precise understanding of who the customer is, why they buy, and how they evaluate value drives stronger diligence outcomes.

Resilience is now a marker of quality.
Indiana founders who have navigated the last two years with capital efficiency are entering 2026 with stronger investor confidence.

Talent flexibility is shaping team structure.
Founders must adapt to distributed teams, blended technical roles, and the growing impact of AI-enabled productivity on workforce planning.

Fundraising cycles are lengthening.
Founders should prepare for deeper diligence, more structured stages, and greater emphasis on sustainable growth rather than rapid expansion.

Why It Matters

Early-stage founders often build amid uncertainty, but the current venture landscape requires sharper intentionality. Grote’s insights reinforce that Indiana companies are well positioned for this moment precisely because they have long operated with pragmatism and focus. In an era where efficiency and clarity outrank velocity, regional founders can compete and win by leaning into strengths that investors increasingly value.

Elevate Ventures continues to see strong opportunities emerging across software, hardtech, and applied AI, particularly where founders can prove real customer demand. Grote’s perspective offers both caution and confidence: fundraising is challenging, but not prohibitive, and disciplined founders will continue to earn support.

Closing Reflection

Grote’s session underscored a fundamental truth: capital still flows to teams who operate with conviction, clarity, and discipline. As Indiana enters a decisive period of economic growth, founders who understand these dynamics — and build accordingly — will be poised to turn constraints into momentum. The year ahead may challenge assumptions, but for the right teams, it also offers meaningful opportunities.

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