Second quarter venture capital statistics from PricewaterhouseCoopers and the National Venture Capital Association (NVCA) were released last week, and show promising signs for Indiana’s entrepreneurial sector.
Comparing Q2 2009 to Q2 2008, the state saw its total venture investment grow by $25 million (according to deals tracked by the NVCA), or 43%. We accounted for 8% of total deals nationally, up from 5% in Q2 2008; if annual venture activity continues at a similar pace based on year-to-date data, 2009 investment will grow about 31% from 2008. Considering that venture investment for the Midwest region actually declined from the second quarter last year, this is very positive news for the state’s entrepreneurial efforts.
Indiana still struggles with the transition to an innovation-based entrepreneurial economy. Recent data still shows us mired in the middle of the pack when it comes to patents-per-employee, a major innovation indicator. But bottom line, if more investors are committing more funding to Hoosier start-ups, we’re moving in the right direction. Coming on the heels of TechPoint’s Innovation Summit last week, these statistics underscore the need to redouble our efforts to make Indiana a more hospitable place to bring new ideas to market.