CICP News & Updates

According to the State Science and Technology Institute (reporting on data from PricewaterhouseCoopers and the National Venture Capital Association (NVCA), 2009 was the worst year for venture capital investment in more than a decade.  The STTI story opens:

Last year venture investment decreased to its lowest level since 1997, according to the latest Moneytree Report from PricewaterhouseCoopers and the National Venture Capital Association (NVCA).  A weak environment for exits and increasing caution on the part of investors contributed to a 37 percent decrease in investment dollars and a 30 percent decline in venture deals from 2008 levels. This marks the second consecutive year of declining venture dollars and deals.

While this is clearly bad news for the vitality of our ‘innovation economy’ nationally, it again points out the opposite trend that’s occurring here in Indiana. 

Back in ’97, the state was still largely regarded as ‘flyover country’ by venture capitalists; the NVCA tracked just $25 million in equity investment here.  By 2009, this had grown 600% to $150 million (and we’re aware of a number of sizable deals that appear to have been missed in the NVCA surveys).  Collaborative efforts like the BioCrossroads INext Fund (successor to the $72M Indiana Future Fund), a $58 million ‘fund of funds’ focused on life sciences start-ups, and the HALO angel investor network, which has invested $12M in ten high-tech Indiana start-ups over the last two years, are putting Indiana in the thick of the venture capital game…not relegated to the sidelines, as was often the case in the past.

As the economy starts to recover, signs point to a much stronger environment for risk capital investment – this time around, Indiana will be in position to take full advantage of this upswing, to the benefit of building a more diverse, entrepreneurial economy.