Indiana venture capital activity surges in third quarter, report says

Venture capital activity in Indiana picked up significantly in the third quarter, according to the latest PwC/CB Insights MoneyTree report.

Hoosier companies landed $53.5 million in venture capital on 16 deals from July 1 to Sept. 31, according the report released Tuesday. That’s up from $27.2 million on 12 deals in the second quarter and from $34.9 million on 15 deals in the third quarter of 2017.

Nationally, VC-backed companies saw a 17 percent increase in funding in the third quarter, to $28 billion, according to the report, but the number of deals fell for the first time since the fourth quarter of 2017, to 1,229.

The quarter was marked by a major surge in “mega-rounds,” with 55 deals worth more than $100 million and six worth more than $500 million.

Indiana ranked 13th among states in number of deals and 23rd in the dollar amount.

The state’s biggest deal in the quarter, according to the report, was Indianapolis-based High Alpha’s $16.65 million fundraising effort to establish High Alpha Studio II, an enterprise-startup studio focusing on software-as-a-service companies.

Among other deals, Emplify (formerly Bluebridge) raised $7.5 million, PactSafe brought in $5.5 million, and Kenzie Academy raised $4.2 million.

Four companies raised $4 million each: Remodel Health, OneCause and Sigstr.

Another survey—the PitchBook/NVCA Venture Monitor report, which typically includes a broader range of deals than the PwC/CB Insights MoneyTree report—said there were 21 VC deals in Indiana in the third quarter worth $141.3 million.

Unlike the MoneyTree survey, the Pitchbook report included the $85 million raised by High Alpha to establish High Alpha Capital II, a seed and Series A venture fund.