Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
Venture investments in Indiana’s tech sector dropped significantly in the third quarter as compared with the first half of the year, a new report shows.
According to Indianapolis-based TechPoint’s third-quarter venture report, released this week, the state’s tech companies received a total of $51.3 million in venture funding from a total of 27 deals last quarter. That’s down from 46 deals totaling $215.8 million in the second quarter, and 29 deals totaling $348.9 million in the first quarter.
During the third quarter of last year, Indiana tech companies received a combined $93.9 million in venture investment from a total of 19 deals.
TechPoint CEO Ting Gootee said she’s not surprised by the report’s findings, noting that the third quarter is traditionally a slower period for venture investing activity.
“I think the data is actually pretty spot-on in terms of what we’ve been seeing in the trenches across the board, what’s happening with founders and investors,” Gootee said.
Gootee said venture investors remain cautious in light of the tech-industry slowdown that began in mid-2022. Investing activity also tends to slow down amidst the uncertainty that surrounds elections, she said.
But Gootee said she’s “cautiously optimistic” about the venture market, especially given the network of entrepreneurial support available from the state of Indiana, the state’s universities and other entities, including TechPoint.
Carmel-based MBX Biosciences Inc.’s initial public offering last month is also encouraging, Gootee said. The company, launched five years ago, is developing treatments for a variety of endocrine and metabolic disorders.
Because MBX is a biosciences company, its public offering is not part of TechPoint’s third-quarter venture report. The deal, though, is a sign of market confidence—and it provides liquidity for MBX’s early investors, who could then use that money to invest in other Indiana companies, Gootee said.
The full report is available here.
Please enable JavaScript to view this content.