“Entrepreneurship is one of the most important investments we can make in Indiana’s future.”
2022 was another record-breaking year for the welcoming, tightly connected Indiana ecosystem. Named Best State to Start a Business by Forbes thanks to its low taxes, reasonable cost of living and talented workforce, Indiana welcomed 218 companies that located or expanded here, investing more than $22.2 billion and creating 24,059 new jobs. According to the Indiana Economic Development Corp. (IEDC), 38 startups have participated in its accelerators to date, raising a record $65 million in funding. The IEDC also provided $18.5 million in tax credits through its Venture Capital Investment tax credit program. In 2022, state-supported VC firm Elevate Ventures made 128 investments totaling nearly $23 million, a new record. Indiana is set to receive $99.1 million in federal funding through the State Small Business Credit Initiative to increase capital for Indiana entrepreneurs. Approximately $70 million will be directed to accelerating Indiana’s startup ecosystem.
Cleantech companies are an increasing part of Indiana’s business community. Stellantis and Samsung SDI launched a joint venture to build a new EV battery manufacturing facility in May 2022. In September 2022, General Motors announced plans to invest $491 million to support the company’s EV production. Soulbrain MI is investing $75 million to increase production of high purity electrolyte for lithium-ion batteries, and Doral Renewables is building a 13,000-acre solar farm project in Indiana.
Recent significant funding news includes environmental software company Encamp’s $30 million Series C in June 2022 and IT infrastructure company Scale Computing’s $55 million venture round a month later.
Ecosystem by the Numbers
Industry 4.0 and Future Technologies
IEDC, in partnership with Conexus Indiana, awarded 186 Manufacturing Readiness Grants totaling $22.7 million in 2022, supporting $352.7 million in capital investment. A 2022 study by Conexus Indiana and Indiana University Kelley School of Business Center for Excellence in Manufacturing showed that the percentage of manufacturers planning to adopt cobots (collaborative robots) and Cybersecurity in the next five years has doubled from 2020 to 2022. Those planning to adopt sensor technology rose 25%, while those planning to adopt IoT went up 68%.
Indiana’s Life Sciences sector attracted a record $620 million in venture funding in 2022. An Indiana University Kelley School of Business center that prepares students for careers in Life Sciences received a $1 million gift, and Eli Lilly is investing $2.1 billion in Indiana to build two new manufacturing sites in Indiana's LEAP Lebanon Innovation and Research District. Clinical stage biopharmaceutical company MBX Biosciences raised a $115 million Series B in November 2022, bringing the company’s total raised to $174.9 million.
Agtech & New Food
More than 10,000 Indiana agribusiness companies export $4.6 billion in products annually. Purdue, Notre Dame, and Indiana University are recognized globally for their agricultural research, with Purdue’s Agriculture & Biological Engineering Program ranked #2 nationally in 2022 by U.S. News & World Report. Precision fermentation manufacturer Liberation Labs plans to invest $115 million to develop its first commercial-scale biomanufacturing facility in Indiana. In September 2022, AI-powered crop-analytics platform Taranis raised a $40 million Series D.
Reasons to Move Your Startup to Indiana
Dedicated initiatives foster connections, allowing entrepreneurs to quickly connect to resources, information, experts, and talent in Indiana. A 2021–2022 Startup Genome assessment observed that the ecosystem had higher Local Connectedness than the global average. This is a key success factor for startups, with research demonstrating that startups with high Local Connectedness see 2.1x faster revenue growth versus those with low Local Connectedness.
Tax credits in Indiana include the Headquarters Relocation Tax Credit for businesses that relocate to the state and the Economic Development for a Growing Economy Tax Credit for businesses that create new jobs that improve the standard of living for Indiana residents. The Skills Enhancement Incentive provides financial support for training employees, and Next Level Jobs helps cover training costs. Several public-private partnerships are focused on specific sectors, including Central Indiana Corporate Partnership, AgriNovus Indiana, Ascend Indiana, BioCrossroads, Conexus Indiana, Energy Systems Network, and TechPoint.
Indiana is the 10th most affordable U.S. state to live in, according to Forbes, with a cost of living 15% lower than the national average. The average single-family home in the state costs $185,805. Housing costs are 21.7% below the national average. Indiana has one of the lowest unemployment rates in the country at 2.2% and offers businesses a low flat tax rate of 3.23%.
Selected Startup Organizations
Startup Genome Members
Indiana Economic Development Corporation
The Indiana Economic Development Corporation (IEDC) is charged with growing the state economy, driving economic development, and helping businesses launch, grow, and locate in the state. Led by Secretary of Commerce Brad Chambers and governed by a 15-member board chaired by Governor Eric J. Holcomb, the IEDC manages initiatives including performance-based tax credits, workforce training grants, innovation and entrepreneurship resources, public infrastructure assistance, and talent attraction and retention efforts.
Key Ecosystem Players
Biocrossroads blazes the trail to ignite Indiana’s robust life sciences industry through initiatives that help entrepreneurs get connected to their desired sector of the industry, tracking key data, and by providing funding opportunities for emerging life science founders.
News from the Ecosystem
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