Indiana startups raised $34.5M from venture capitalists in first quarter

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Hoosier companies raised $34.5 million from venture capitalists in the first quarter of the year—a trend that, if it continues, could mean a big year for startups.

Five Indianapolis-area companies were the destinations for that cash, according to a MoneyTree report released this week by PricewaterhouseCoopers.

The highlights of those deals:

• Health analytics software firm Springbuk raised $20 million in January.

• Zylo, a company that helps enterprises manage their software subscriptions, raised $9.3 million in January.

• Lumavate, which has created a platform that capitalizes on the transition from mobile apps to progressive web apps, raised $2.5 million in March.

• Bolstra, which sells a customer success management platform focused on businesses that sell to other businesses, raised $1.5 million in February.

• DemandJump, which makes software that allows companies such as Vera Bradley Inc. and Ashley Stewart Inc. to map its buyers, potential buyers and competitors, and target them where and when they are making buying decisions, raised $1.2 million in January.

The capital raised during the first quarter of this year outpaced the first quarter of 2017 by nearly $5 million and the first quarter of 2016 by $13.4 million.

Indiana ranked 25th nationally in the amount of capital raised during the first quarter of 2018 and was 24th in terms of number of deals.

This year still has a way to go to match 2017, though. Thanks to a strong fourth quarter, which saw $66.4 million in venture capital rain on Hoosier companies, state firms raised a total of more than $134 million in 2017. That easily topped the 2016 total of $81.7 million.

The second quarter for Indiana companies looking to raise capital is off to a strong start. 

DemandJump raised another $6 million in April. Also this month, Sports software firm Upper Hand landed $1.5 million and local health care software firm, Hc1.com, raised $7 million in growth capital.  

Those three deals alone—totaling $14.5 million—outpace the 2017 second quarter total of $8.45 million. And the 2018 second quarter—after just two weeks—is already more than half way to the second quarter total of 2016, which at $28.9 million, was that year’s strongest quarter.

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