United States

Indiana

MEMBERS:
Indiana Economic Development Corporation

"The camaraderie and support from the entrepreneur community in Indiana is unmatched and when coupled with myriad public and private programming plus economic incentives, growing our business here was an easy decision."

Erik Coyne
Founder, Folia
Top 15 North American Ecosystem in Affordable Talent
Top 20 North American Ecosystem in Bang for Buck
Top 25 North American Ecosystem in Funding

Highlights

Indiana is a leading participant in the Midwest’s entrepreneurship boom. Its strengths include a business-friendly climate, tight-knit community, top-notch universities, and successful entrepreneurs who invest in new startups. A 2021-2022 Startup Genome assessment found that Indiana’s Local Connectedness was above the global average.  


In 2021, venture investment into the state’s startups passed $1.4 billion across 159 deals, largely due to the sizable growth rounds of a few local scaleups. That represents an 186% increase over 2020. The same year, Indianapolis-based Sixty8 Capital launched a new $20 million fund aimed to provide early-stage funding for underrepresented founders.


The Indiana Economic Development Corporation (IEDC) supports entrepreneurs through the Indiana Small Business Development Center (SBDC) and the Indiana Procurement Technical Assistance Center (PTAC) among other initiatives. In 2021, the Indiana SBDC helped secure $132.6 million in funding for 389 startups. In 2021, 47 foreign-owned businesses committed to locating or growing in Indiana. Elevate Ventures is an IEDC supported venture development organization with an aim to build sustainable entrepreneurship cultures in Indiana. Since 2011, it has invested $132.5 million in 462 Indiana startups with $1.7 billion in private co-investment. IU Ventures assists Indiana University students and faculty to advance high-potential venture opportunities with initiatives including IU Founders & Funders Network, IU Philanthropic Venture Fund, and the IU Angel Network. The Heritage Group Accelerator offers mentorship, collaboration, and R&D assistance for selected startups.


The Central Indiana Corporate Partnership is dedicated to the region’s continued economic growth, offering activities and programs that further develop Indiana’s advanced industries and talent.

Ecosystem by the Numbers

EARLY-STAGE FUNDING
(2019H2-2021)
$282 m
GLOBAL AVG. 2023
$687 m
ECOSYSTEM VALUE
(2019H2-2021)
$2.9 bn
GLOBAL AVG. 2023
$28.6 bn
MEDIAN SEED ROUND (2019H2-2021)
$870 k
GLOBAL AVG. 2023
$671 k
MEDIAN SERIES A ROUND (2019H2-2021)
$1.8 m
GLOBAL AVG. 2023
$4.7 m
SOFT. ENGINEER SALARY (2021)
$70 k
GLOBAL AVG. 2023
$46 k
1.2 bn
GLOBAL AVG. 2023
11.3 bn
86
GLOBAL AVG. 2023
101
Amount ($)
Count (#)

Exits

(2017-2021)
EARLY-STAGE FUNDING GROWTH TIER (2018/19 VS. 2020/21)
9
Calculated on a scale of
1 (lowest) to 10 (highest)
TOTAL VC FUNDING (2017-2021)
$855 m
GLOBAL AVG. 2023
$4.5 bn
TIME TO EXIT (2017-2021)
10.2 years
GLOBAL AVG. 2023
9.4 years

Sub-Sector Strengths

Industry 4.0 and Future Technologies

In 2021, about 43% of companies who responded to a survey by Conexus Indiana and the Indiana University Kelley School of Business Center for Excellence in Manufacturing had successfully implemented or piloted an Industry 4.0 technology, compared to just 20% of companies who said the same in 2020. The survey showed rapid adoption of 3D printing, collaborative robots, and machine vision. The Energy INsights program uses AI and data science to improve sustainability at Indiana manufacturers, and SMEs can participate at no cost.

Life Sciences

Indiana’s Life Sciences industry contributed more than $79 billion in economic impact in 2021. VC investment into the sub-sector increased from $262 million in 2020 to $434 million in 2021, a record high. In another record, more than $12.7 billion in Life Sciences products were exported from the state the same year. iA, a provider of pharmacy fulfillment solutions, plans to open its headquarters in Indianapolis. Pharmaceutical company List Biotherapeutics will open a $110 million plant, and Stevanato Group and INCOG Pharma have also announced plans to open in the state.

Cleantech

Cleantech was identified as Indiana’s strongest performing sub-sector in early-stage funding in a Startup Genome assessment. Energy Systems Network and Battery Innovation Center have partnered with AWS to launch Energy Insights, which develops sustainable multifamily projects under the Moving Forward project and incubates energy startups in a world-class laboratory.

Reasons to Move Your Startup to Indiana

Business-Friendly Climate

Indiana is one of the best states in the U.S. for long-term fiscal stability and low cost of doing business. The Indiana Technical Assistance Program helps small businesses grow by providing up to $15,000 in services from qualified professionals. The Venture Capital Investment Tax Credit program improves access to capital for Indiana companies. The state offers two tax incentives targeted at encouraging investments in R&D: a credit against Indiana state income tax liability and refunded sales tax on R&D equipment.

Innovative Public-Private Partnerships

The Indiana ecosystem demonstrates commitment to sector development through innovative public-private partnerships including Central Indiana Corporate Partnership, AgriNovus Indiana, Ascend Indiana, BioCrossroads, Conexus Indiana, Energy Systems Network and TechPoint.

Local Connectedness

Indiana’s ecosystem is welcoming and supportive, and there are dedicated initiatives to foster connections. Entrepreneurs get quickly connected to resources and Indiana entrepreneurial ecosystem builders believe that the fast and seamless flow of talent, information, and resources among actors in the system is essential for the ecosystem to grow and thrive.

Selected Startup Organizations

Startup Genome Members

"Indiana's startup ecosystem grew an impressive 28% since the last GSER, with an Ecosystem Value reaching almost $3 billion. Now a Global Top 40 Emerging Ecosystem we know it will continue to thrive thanks to the leadership of the Indiana Economic Development Corporation."
JF Gauthier, Founder & CEO of Startup Genome

Get connected

Are you interested in diving deeper into this ecosystem? Drop us a message. Our Ambassadors and Partners can plug you in.