The 2018 Indiana Venture Report from Elevate Ventures offers an insightful overview of the venture capital landscape in our state.
Bottom line: There is improvement in some areas, but still a great deal of work to do. That may be a similar conclusion to recent sentiments, but the Elevate team backs it up with some numbers and analysis.
The closing section of the report features the following:
“Despite national, regional and local venture investment growth, Indiana still captures a very small piece of the aggregate venture capital share. Furthermore, dollars per deal in 2018 in Indiana were one of the lowest over the last decade even though the number of deals has been relatively trending up. …
“A few very large deals have contributed to overall VC investment growth in previous years in Indiana, suggesting the need to improve the overall deal quality across investment stages in order to maintain a robust investment pipeline for future VC investment.”
Elevate has the charts documenting the results. A few of the highlights:
- Nationally: $112.2 billion invested in nearly 7,000 companies in 2018
- Indiana: 75 deals totaling $253 million with these median ($1.05 million) and average ($3.4 million) deal sizes
- In deals per capita, Indiana ranks third of seven Midwest states (behind Illinois and Minnesota)
- In dollars invested per capita, Indiana trails all of those seven states except Kentucky
- Of Indiana’s 75 deals, 22 were below $500,000 and the same number between $1 million and $4.9 million
- Fifty-two of the 75 deals were in the central region (Marion and several surrounding counties)
- Over 40% of all VC dollars in the state in 2018 went to the information technology sector, followed by the health care industry with more than 30%
- A breakdown by investors is also included, with Elevate Ventures participating in 51 of the 75 deals