Indiana venture capital activity picks up in third quarter

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Venture capital activity in Indiana picked up in the third quarter after slumping in the second period, according to two reports issued this week.

Indiana companies landed $28.7 million in venture capital on 10 deals from July 1 to Sept. 31, according to the latest PwC/CB Insights MoneyTree report.That's up from $9.3 million on five deals in the second quarter and $17.2 million on 10 deals in 2016's third quarter.

Another survey—the PitchBook/NVCA Venture Monitor report, which typically includes a broader range of deals than the PwC/CB Insights MoneyTree report—showed an even better third quarter. It reported $41.2 million worth of venture investments on 18 Hoosier deals.

That was up from $30 million on 14 deals in the second quarter and $12.6 million on 11 deals in the year-ago period.

Venture capitalists have been on a spending spree so far in 2017, but have been investing more money in fewer companies, according to PitchBook/NVCA Venture Monitor.

The number of deals that closed nationally in the first three quarters of 2017 is lower than it has been since 2011, but the amount spent on deals is near an all-time high, topping $61 billion so far this year.

Quarterly funding to VC-backed companies in the United States reached a two-year high, according to the PwC/CB Insights MoneyTree report, hitting $19 billion on 1,207 deals. Experts say mega-deals ($100 million or more) are driving activity and made up more than 40 percent of the dollar value of investments in the third quarter.

According to the PwC/CB Insights MoneyTree report, the top five deals in Indiana in the third quarter were:

—Wellfount, an Indianapolis-based long-term care service company, raised $11.9 million;

—Sigstra, an Indianapolis-based email software firm, received $5 million;

—FAST Biomedical, an Indianapolis-based health care company, got $5 million;

—250ok, an Indianapolis-based software buisness, landed $2.65 million; and

—CheddarGetter, a Bloomington e-commerce service provider, scored $1.25 million.

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