It’s no secret that Indiana has been transforming into a burgeoning hub of technological innovation. This year alone, Indiana saw the creation of the Heartland BioWorks tech hub, continued development of 16 Tech Innovation District and the construction of The Forge, Bloomington’s new tech center which will be opening soon. 

But we didn’t start as such a diverse and thriving ecosystem; the state’s tech sector once leaned heavily on B2B SaaS (Software as a Service) companies as its crown jewels. The convergence of tech and other sectors in Indiana reflects a broader national trend where technological innovation is no longer confined to traditional software models. Indiana is a prime example of how industrial convergence within the tech industry is both critical and thriving. 

For years, the Hoosier state’s tech scene was synonymous with companies like ExactTarget (acquired by Salesforce) and Angie’s List (now Angi), which set a high bar for what Indiana could achieve in the tech space. These companies pioneered the B2B SaaS model in Indiana, drawing in considerable investment and talent. Investment firms like High Alpha launched and grew to support these software solutions at scale. However, as the tech ecosystem matures, the scope of entrepreneurship is expanding well beyond this single vertical. 

Today, Indiana’s tech sector is flourishing across multiple fronts: from health tech and bioinformatics to advanced manufacturing, agbioscience and clean energy technologies. This expansion is driven by several key factors that suggest a sustainable and inclusive growth trajectory.  

In the third quarter of 2016, the TechPoint team reported six tech venture capital investments, and all six of them were B2B SaaS-focused ventures. This year’s Q3 data demonstrates 30 deals across 11 verticals: 

Vertical Deal Count 
AgBioScience 1 
HR Tech 1 
CyberSecurity 1 
Manufacturing / HardTech 2 
EdTech & Workforce Tech 3 
Life Sciences 7 
Mobility 2 
Tech Services 5 
Martech 3 
Fintech 1 
Other 1 

This data demonstrates the expanding aperture of our tech ecosystem, as well as growth in overall venture activity since 2016. We must continue to support and expand on this activity to realize the great potential the shift is creating. 

Educational Foundations and Workforce Development 

Central to this evolution is Indiana’s commitment to education and workforce development. Institutions like Purdue University, Indiana University, Notre Dame, Butler University and Rose-Hulman Institute of Technology have been pivotal in fostering a new generation of tech entrepreneurs and engineers. These institutions are not just feeding the local startup ecosystem with talent, but are also active participants in research and innovation that spur company formation.  

For instance, Butler’s EdTech and Workforce Innovation Accelerator, in partnership with gener8tor and TechPoint, serves startups in our growing edtech industry in Indiana. Indiana University and Notre Dame are leaders in Higher Ed Venture Capital through IU Ventures and the 1842 Fund. These initiatives are just a few examples of how educational institutions in the state are playing a more dynamic role in broadening the tech landscape. 

Government and Institutional Support 

Support from state and local governments has also been instrumental to the diversification of Indiana’s tech portfolio. The Indiana Economic Development Corporation (IEDC), offers incentives for startups and established tech companies to innovate and grow within the state. Initiatives aimed at increasing access to venture capital, such as the Next Level Fund, Elevate Ventures and the Venture Capital Tax Credit program, are vital for startups branching into new tech domains. 

Moreover, Indiana’s tech growth is bolstered by several public-private partnerships and accelerators that bridge the gap between ideation and execution. For example, 16 Tech Innovation District in Indianapolis is designed to be a catalyst for innovation and growth, featuring labs, advanced manufacturing facilities and collaboration spaces that are attractive to a broad spectrum of tech businesses. Additionally, gener8tor, Techstars and Plug and Play Tech Center execute several startup accelerators each year. 

Cultural Shifts and Broader Participation 

Culturally, there’s a noticeable shift towards embracing risk and innovation across the state’s business landscape. Traditional industries are undergoing digital transformations, and there’s a growing realization that embracing technology is key to staying competitive. This cultural shift is crucial as it creates a more fertile ground for tech ventures beyond the conventional software models. 

The widening aperture of tech entrepreneurship in Indiana is also evident in the increasing diversity of founders and entrepreneurial leaders. Efforts to foster inclusivity in tech are gaining ground, which is crucial for innovative perspectives and ideas to surface. Organizations such as Women & Hi Tech, Re/Boot Representation, The Startup Ladies, Innopower, the Minority Moves Network, our statewide collaboration, Mission41K, and many others are working to ensure that the tech landscape in Indiana is inclusive and representative of its diverse population. More, of course, must be done and we cannot be satisfied with only incremental change. 

As Indiana continues to see increased tech adoption across all industries, the potential for groundbreaking innovations and economic prosperity looks promising. By continuing to invest in education, supporting public-private partnerships and fostering a culture of inclusion and innovation, Indiana will widen the state’s tech aperture further and set a benchmark for other states looking to cultivate their tech ecosystems.