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INDIANAPOLIS, Ind. (Feb. 28, 2022) – Venture capital investment in Indiana topped $1 billion in 2021, according to the 2021 Indiana Venture Report, released today by Elevate Ventures. The milestone is a first for the state and exceeded total dollars invested in 2019 and 2020 combined.  

In 2021, Indiana generated 159 deals with investment of $1.4 billion, an increase of 186% over 2020. Pre-seed deals (below $500K) were responsible for most of the deal flow in 2021, with 71 transactions. The state did see an uptick in later-stage deals (greater than $10 million), with 17 deals in 2021 over 14 deals in 2020, indicating a maturing venture ecosystem in Indiana. 

“In 2021, Indiana’s venture capital investment momentum was consistent with national trends,” said Chris LaMothe, Elevate Ventures CEO. “Investment in Indiana companies has never been stronger. As the landscape evolves, we must remain focused on building sustainable companies that can compete globally.” 

Other findings in the report include: 

  • Indiana remained the second-highest state in deal activity in the Great Lakes and Midwestern regions, behind only Illinois;  
  • Indiana accounted for 0.4% of United States venture capital dollars in 2021, up from 0.3% in 2020;  
  • Five Indiana companies raised mega-rounds (greater than $100 million) in 2021; 
  • The business-to-business (B2B) tech sector attracted over 65% of all venture capital dollars invested in Indiana; 
  • Four of the 10 largest deals in the state were closed in the West Central region, where venture activity increased 300% over 2021. 

“The entrepreneurial spirit has been reignited in the hearts of Hoosiers, as we again saw an uptick in new business creation in 2021,” said Indiana Secretary of Commerce Brad Chambers. “Under Governor Holcomb’s leadership, we have renewed our focus on accelerating entrepreneurial endeavors, leveraging this momentum to build out our ecosystem and increase business investment across all stages of growth.”  

The 2021 Indiana Venture Report provides a year-end assessment of venture investment activity in Indiana. The report examines national and regional venture capital trends, as well as venture capital activity in Indiana compared across sectors, stages and regions. This year’s report also includes a special feature on venture-backed founders who raised significant rounds in 2021. 

Contributors to the report include the Indiana Economic Development Corp., AgriNovus, BioCrossroads, Gener8tor and TechPoint.

Click to read the full Elevate Ventures 2021 Indiana Venture Report.