Indianapolis-based venture capital firm Allos Ventures has begun raising money for its fourth and largest fund to date, the $75 million Allos IV.
On Wednesday, the firm announced the first closing of Allos IV, with investors that include the Indiana Next Level Fund, 50S Capital and First Internet Bank of Indiana, along with a number of tech industry entrepreneurs and Fortune 500 executives.
“We’ll start investing out of Allos IV right away,” said David Kerr, one of Allos Ventures’ three managing directors. “We’re sourcing companies right now and meeting with companies that we may invest in.”
Kerr declined to say how much Allos IV has raised so far, citing U.S. Securities and Exchange Commission regulations.
But in a December filing with the SEC, Allos disclosed that it planned to raise $75 million for an Allos IV fund. At the time of that filing, Allos had not raised any money for the fund. As of Tuesday, the firm had not yet filed an updated disclosure revealing how much it has raised to date.
Kerr said Allos IV will target the same type of investments as its previous three funds: early-stage business-to-business software companies that are based in the Midwest. Allos primarily acts as the lead investor in Series A funding rounds, but it also participates in smaller seed-stage funding for startups.
Allos Ventures was founded in 2010. To date, it has invested in more than 40 growth companies, marking it as one of Indiana’s most active venture capital firms. Allos raised $23 million for its first fund, Allos I, in 2010; and $40 million for its second fund, Allos II, in 2013. It raised $52 million for Allos III in 2020.
The firm’s previous investments have included numerous local companies, including Indianapolis-based Lessonly, which was acquired by Seismic in August; Fishers-based Emplify, which was acquired by 15Five in April; Indianapolis-based Aprimo, Codelicious, Docket, Encamp and OneCause; Zionsville-based 120Water; and Carmel-based Authenticx.