Indiana’s entrepreneurial ecosystem has garnered significant attention from venture capital (VC) firms across the country in the past several years, bringing in about $2.8 billion in the past five years. Recent totals are lighter than expected due to a nationally tech-industry slowdown that began in mid-2022 and uncertainty surrounding the recent elections. Responding to those market conditions, Indiana policymakers, educators and organizations like TechPoint, have renewed focus on supporting entrepreneurs, scaling successful companies and embracing emerging technologies.  

Our analysis of market conditions is bolstered by insights from seven leading investors focused on Indiana. We believe Indiana’s venture capital landscape is poised for a robust 2025, driven by optimism from investors, and a better supported, and growing, ecosystem of innovative founders.  

Key areas of growth are expected to include artificial intelligence (AI), digital health, and traditional industries adapting to new technologies. Founders who can demonstrate a strong vision, market fit, and traction with customers will be in the best position to secure the funding they need to scale their businesses and contribute to Indiana’s vibrant entrepreneurial ecosystem. 

Optimism for Investment Growth in 2025 

Across the board, Indiana’s venture capital firms are optimistic about the prospects for tech investment in 2025. As Elevate Ventures’ Christopher Day notes, “The momentum we’ve seen in 2024—fueled by the state’s thriving entrepreneurial ecosystem, growing talent pool, and increasing access to capital—has laid a strong foundation for the future.” Elevate Ventures, which supports innovation-driven companies at the Pre-Seed, Seed, and Series A stages, anticipates that the state’s growing resources will enable it to make an even greater impact in the coming year. 

Neenah Jain shares a similarly upbeat outlook, emphasizing that her firm is actively scouting companies across Indiana. Jain says the firm will deploy capital in strong, high-potential startups that align with their investment strategy. 

Allos Ventures, which focuses on high-growth, tech-driven companies, is also seeking disruptive startups in the Midwest. 

“We are optimistic about the investment opportunities in Indiana in 2025,” says David Kerr, Managing Director.  

Other investors, including Ben Pidgeon of VisionTech Partners and Eric Steele of Flywheel Fund, also expect Indiana investment activity to be robust. Steele specifically anticipates making 10 to 20 quality investments in Indiana tech companies in 2025, underscoring his firm’s commitment to identifying high-potential opportunities regardless of broader market fluctuations. 

IU Ventures’ Chief Venture Officer Jason Whitney points to factors like the culmination of bridge rounds leading to larger Series A rounds and growing relationships with outside investors, as reasons for his belief that investment numbers across the state this year will exceed 2024’s levels. 

Key Areas of Investment in 2025: AI and Digital Health Leading the Charge 

When it comes to the specific areas of tech investment in 2025, artificial intelligence (AI) is undoubtedly at the forefront of investor focus. Day says AI is creating transformative opportunities across industries, particularly in sectors like healthcare, manufacturing, and logistics. Given Indiana’s established strengths in these areas, the state is uniquely positioned to benefit from AI-driven innovation. 

Jain shares this sentiment, highlighting multimodal AI as a key area for growth. She anticipates that AI will continue to improve human efficiency and enable the rise of “agentic” AI systems—virtual colleagues that can work alongside humans to solve complex problems. 

Ben Pidgeon notes the immense potential of applications that are still emerging. “I just saw an article in Nature about how scientists are trying to use AI to translate animal communications,” he said, demonstrating the breadth of AI’s future potential. Life sciences, financial services, and other industries stand to benefit significantly from AI’s productivity gains. Quantum computing may also play a key role in this development, he said. 

AI may dominate the conversation, but other sectors are gaining traction. Ginger Rothrock, Ph.D., Senior Director at HG Ventures, points to AI applications with highly targeted solutions to industry problems, especially in sectors like labor efficiency and supply chain management. Meanwhile, Eric Steele from Flywheel Fund is particularly interested in seeing how traditional industries—those slower to adopt new technologies—can leverage AI and machine learning to improve their operations. 

Additionally, digital health is emerging as a key focus for Indiana’s tech ecosystem. Whitney identifies digital health as an often overlooked but highly promising sector for growth in the state. With institutions like BioCrossroads and the LAB Project at IU Indianapolis fueling innovation in this space, he says Indiana is poised to make a significant impact in the digital health market. 

What Do Founders Need to Secure Funding? 

As the investment landscape heats up, tech founders looking to secure funding from Indiana’s leading VC firms should focus on a few key areas. For Elevate Ventures, successful founders must demonstrate a compelling vision, a scalable business model, and a strong, adaptable team. Day encourages founders to embrace the Market, Entrepreneur, Legal, Financial, and Operational (MELFO) Framework, which guides Elevate’s evaluation process. 

  • Christopher Day, or “Toph,” is the CEO for Elevate Ventures in Indianapolis. Elevate invests in cross-sector innovation-driven companies at Pre-Seed, Seed and Series A stages who are headquartered or have a significant presence in the state of Indiana.

  • Neenah Jain is based in Indianapolis and serves as Partner and CFO with Armory Square Ventures. The firm is based in Syracuse, New York and invests in the most ambitious and promising startups across all of New York State and in secondary markets across the Midwest. 

  • David Kerr is the Managing Director for Allos Ventures. With offices in Carmel and Cincinnati, the firm invests in high-potential tech companies in the heart of the Midwest. Allos has nearly 50 companies in its portfolio. 

  • Ben Pidgeon is the Executive Director for VisionTech Partners | VisionTech Angels in Indianapolis. VisionTech is one of the Midwest’s most active angel investing groups, with more than 50 companies in its portfolio.  

  • Ginger Rothrock, Ph.D. is a Senior Director with HG Ventures in Indianapolis. HG Ventures partners with innovative, high-growth companies that support a sustainable future in materials, infrastructure, environmental solutions and industrial systems. 

  • Eric Steele is the Managing Partner for Flywheel Fund, a member-managed capital fund based in Bloomington. Flywheel Fund invests in early-stage, tech-driven, companies with an Indiana nexus. 

  • Jason Whitney serves as the Chief Venture Officer for IU Ventures. IU Ventures is a 501(c)(3) affiliate of Indiana University focused on assisting IU students, faculty, staff and alums with advancing high potential new venture opportunities. IU Founders & Funders Network, IU Philanthropic Venture Fund and the IU Angel Network are the key IU Ventures programs supporting this focus. 

Jain emphasizes the importance of founder-market fit—the ability for founders to show they’ve lived the problem they’re solving and possess the necessary domain expertise. For Armory Square Ventures, a significant total addressable market (TAM), a compelling team and early proof of product-market fit are crucial for success. “We look for opportunities with a billion dollar-plus addressable market, enough traction to have early proof of product-market fit, and a team that is so compelling that we would quit our job to work for the founder,” she shares. 

Pidgeon highlights the need for founders to clearly articulate their business model and customer discovery process. He looks for companies that not only solve a problem but can demonstrate a clear understanding of their target customers’ needs. 

For Allos Ventures, domain expertise and early customer traction are vital. Kerr values founders with previous startup experience and those operating in markets ripe for disruption. 

Rothrock stresses the need for companies to demonstrate customer adoption and solve validated industry problems. She also highlights the importance of being “smart and creative” in navigating leaner periods. 

Steele echoes this advice, noting that companies need to have already validated their market with paying customers before securing funding. 

If you have funding needs now or expect to have them in the future, the following information could be key to your success. If you have an early-stage tech company or an idea for a company, TechPoint wants to hear from you.  

  • Sign up for a Venture Support meeting so we can learn more about what you’re doing.  
  • Meet potential investors at our two upcoming Venture Connect events in 2025.  
  • Follow TechPoint’s Community Calendar for other events that can support your efforts. 
  • Subscribe to the TechPoint Index to learn what’s new in the Indiana tech ecosystem, and let us know if you have news to share.