Securing funds for venture capital a top priority for Indiana tech lobby

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Indiana’s technology-focused support groups’ legislative priority this session is securing additional state investment for tech startups and established companies, they announced during an event Tuesday afternoon.

The Indiana Technology and Innovation Association, which lobbies on behalf of the state’s technology sector, and advocacy group TechPoint are asking lawmakers to re-up their support of the Indiana Next Level Fund, which is used to make venture capital investments in state companies. 

However, an expected tight budget cycle could limit how much lawmakers are willing to designate for existing technical investments—never mind additional requests. Both Democrat Rep. Phil Giaquinta and Republican Sen. Travis Holdman said they want to help the tech industry but are handcuffed by the budget.

“I wish I had flowery, optimistic forecasts of where we’re going this next session,” Holdman told attendees. “I wish I had better news for you.”

The December revenue forecast will shed light on how much legislators will have to work with.

Injecting more venture capital into the state’s startup community is a top priority for ITIA and TechPoint. ITIA Executive Director Jennifer Hallowell said that a lack of financial support is a reason for Indiana entrepreneurs to leave the state for the coasts.

Lawmakers greenlit the Next Level Fund in 2017, replacing the Next Generation Trust Fund. With up to $250 million in its initial investment, Hallowell said a new installment is needed as the first allocation nears its end.

“This is one of the most critical steps that we can take to accelerate Indiana’s innovation economy,” she said.

ITIA and TechPoint are also advocating for continued financial support of the 21st Century Research and Technology Fund, or 21 Fund for short. The fund, which supports early-stage investors, received $33 million a year in the last two-year budget cycle.

As for tech parks, the lobbyist group is seeking to allow member companies of Indiana’s two dozen tech parks to capture an extra $500,000 of annual incremental tax income once they hit their $5 million cap. 

They also seek to pass a Right to Start Act, which is entrepreneurship-friendly legislation crafted by the namesake nonprofit. Republican Rep. Jake Teshka of North Liberty introduced legislation last session that died in committee.

As for building the state’s workforce, ITIA and TechPoint are asking for lawmakers to continue funding the STEM Teacher Recruitment Fund, Next Level Computer Science Program and for robotics and entrepreneurism programs.

They also support continued funding of Career Scholarship Accounts. The CSA program offers high school sophomores, juniors and seniors up to $5,000 a year to offset expenses associated with participating in approved internships, apprenticeships, work-based learning and credential programs.

The Indiana treasurer’s office, which houses the program, introduced a budget to lawmakers last week that included maintaining the same level of funding support.

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