Continued record investment and growth in 2022: A look back at who raised money, moved or expanded in the Indiana tech sector
Roger Shuman and Jordan Isaacs lead TechPoint’s programs focused on helping tech companies find the capital they need to expand, as well as attracting new tech companies to Indiana. They took a look back at the outcomes of that work, which is positioning Indiana as a national leader in digital innovation.
Will Indiana break another venture capital investment record in 2022?
TechPoint has been tracking tech-based venture capital (VC) investments, as well as mergers and acquisitions (M&A) activity since 2015, when VC investment in Indiana tech started to build. We’re pleased to report that 2022 is shaping up to be the second largest VC year on record.
National news headlines are all about giant tech company layoffs, but in Indiana, investors continue to support the tech ecosystem with substantial investments, primarily in early-stage companies.
Standout investments through the third quarter of 2022
- Encamp raised $30 million in Series C funding. This is part of a new trend for Indiana tech companies as they continue to seek capital as part of their scaling strategy. It is far more common today to see companies raise capital rounds beyond Series A before becoming a part of a merger or acquisition.
- Olio secured $13.5 million in Series A funding.
- Vibenomics announced another $12.3 million from Panoramic Ventures of Atlanta. Panoramic has now made multiple investments into Vibenomics since getting connected in a previous TechPoint Venture Connect event (formerly known as VC Speed Dating).
- Decimal raised $9.2 million in seed funding, which may be the second largest seed round ever raised by an Indiana tech company.
- Woven completed an $8 million Series A round led by Allos Ventures.
- DriverReach secured a $7.5 million investment.
- Lumavate raised $6 million in funding.
- Demandwell raised a $5 million seed round.
Agtech companies attracted considerable attention from investors in 2022
- Solinftec, a developer of a digital agricultural platform designed to improve outcomes and reduce environmental impact, announced its global move from Brazil to West Lafayette in 2019. In April 2022, the company closed on $60 million in venture funding.
- Taranis, an AI-powered crop analytics platform, announced its move from Tel Avi, Israel, to Westfield in late 2020 and in September 2022 announced a $40 million Series D raise.
- Other agtech and food tech companies that raised capital in 2022 include The Bee Corp, Verility, Smart Apply, LeafTech Ag, ReproHealth Technologies, Market Wagon (winner of a 2022 Mira Award), Atarraya, and Traction Ag Inc.
We are also seeing lasting impact from tech accelerators like gBETA, Techstars Sports Accelerator Powered by Indy and the Heritage Group Accelerator are regularly in the headlines as they grow, raise capital, hire talent and open offices.
Encamp, Woven, Verility, The Bee Corp, Market Wagon and Leaftech Ag participated in Indiana-based gBETA accelerator programs in the last five years. MITO Material Solutions moved to Indianapolis in 2019 from Oklahoma after being accepted to the Heritage Group Accelerator. In February 2022, the company closed on a $4 million seed round and then opened a 7,000 square foot office in Indianapolis in August.
We would be remiss if we didn’t tip our caps to Hoosier bootstrappers who are also part of the storied past and promising future of Indiana Tech. If there was an Indiana Bootstrappers Hall of Fame, product companies like DoubleMap and One Click Ventures would be members. There are also countless tech services companies in Indiana’s ecosystem that have never raised capital. Companies like Blackink IT, Leaf Software Solutions, Centric Consulting and SEP typically grow at a slower rate and are able to do so from their own revenue.
Investment in Indiana tech continues to be a low-risk, high-return endeavor as the companies cited above and others are showing. TechPoint recently announced a suite of news programs and services designed to help Hoosier founders to get their products and services to market. If you’re in this mix, check out our new Venture Support effort and let us know how we can help you get your idea to market.
Digital innovation continues to grow in Indiana; 2022 saw record number of expansions and relocations
Several tech or tech-enabled companies answered the call in 2022 to relocate or expand in Indiana. This growth, along with supportive actions across the ecosystem, has resulting in Indiana increasingly being seen as a growing tech hub. Our evidence: the migration of tech talent to Indiana, continued recognition as a leading tech hub and record breaking economic development wins in 2022.
In the two years of focused effort to attract companies to expand or relocate to Indiana, we’ve learned that companies are motivated by three things even more than Indiana’s historically low cost of living and doing business: the depth of talent created at world class colleges and universities, the high degree of innovation across all levels of company and organization size and type and connectedness of the business, philanthropic and government communities.
Indiana Governor Eric Holcomb was recently quoted as saying Indiana’s economy is “firing on all cylinders.” An example of how that’s occurring is significant commitments from microelectronics and EV battery technology companies driven by state leaders’ and universities creating the supportive infrastructure those developing sectors require.
A key example of that is Indiana U.S. Senator Todd Young co-authored and strongly pushed the historic federal CHIPs & Science legislation that passed in 2022. This will help continue critical growth in digital innovation touch countless industries. Other examples are the development of a “hard tech corridor” from West Lafayette to Indianapolis and Indiana University’s focus on a STEM corridor in the heart of Indianapolis.
Lest the world somehow miss these foundational changes, in 2022, Indiana also hosted the first ever Indiana Global Economic Summit which brought 800 guests and 30 international delegations to Indiana. The four-day event was meant to strengthen ties between Indiana and the world in cutting-edge industries such as clean energy, microelectronics and electric-vehicle technology.
More tech companies are moving to or expanding in Indiana
Making the decision to relocate or expand is complex, complicated and time consuming. TechPoint is dedicated to showing companies why Indiana is the best place to relocate their operations, open new offices, and expand their footprint. We do this through core connections to significant industry leaders and crucial conversations surrounding important issues. We also do this through connections to top tier talent, innovative investors looking to help companies grow, and promotional work to help tell the story of Indiana tech.
Your team might not be taking advantage of all the incentives the state of Indiana has to offer to allow for maximum growth. Please contact me at email@example.com to learn more about these opportunities.
Here is a quick look at a sample of the companies that took on those challenges to relocate or expand operations in:
Tech Product & Service Companies
Tech Enabled Companies
TechPoint is committed to helping the Indiana tech ecosystem grow through attracting and retaining innovative companies dedicated to and ready to invest in our community.
If you want to learn more about happenings in different regions throughout the Indiana, make sure you check out the recap of the Indianapolis Business Journal’s Engage events in Northeast Indiana, Northcentral Indiana, Southwest Indiana and Central Indiana.