United States
Indiana
"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."
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 $1.7 billion in private co-investment. IU Ventures assists Indiana University students and faculty to advance high-potential venture opportunities with initiatives including IU Founders & Funders Network, IU Philanthropic Venture Fund, and the IU Angel Network. The Heritage Group Accelerator offers mentorship, collaboration, and R&D assistance for selected startups.
The Central Indiana Corporate Partnership is dedicated to the region’s continued economic growth, offering activities and programs that further develop Indiana’s advanced industries and talent.
Ecosystem by the Numbers
Amount ($)
Count (#)
Exits
(2017-2021)Sub-Sector Strengths
Industry 4.0 and Future Technologies
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
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
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