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Indiana tech firms saw less venture capital investments in 2025 compared to the previous year, according to a new report from Indianapolis-based TechPoint.
The 2025 Venture Report, released on Monday, says Indiana-based tech companies raised approximately $290 million across 98 separate deals last year. In 2024, companies raised a combined $549 million in 139 separate deals.
TechPoint, the growth initiative for Indiana’s tech sector, said the report highlights “a year defined by recalibration and renewed focus on long-term value creation.”
TechPoint Vice President of Innovation and Entrepreneurship Chelsea Linder told Inside INdiana Business there is optimism to be found despite the drop in venture activity. She said investors are starting to develop a different idea of what they’re looking for in companies.
“It looks a lot more like what Indiana companies have always been great at, which is sustainable, consistent growth and budgeting for profitability, or at least break even, instead of kind of a ‘grow at all costs’ mentality that we see on the coasts,” Linder said. “And so because what we’ve always done in Indiana is becoming more aligned with what investors across the globe are looking for, that gives me a sense of hope and confidence that we’ll be able to gain more support.”
The report said while venture investment activity remains below the high levels set in the early 2020s, the distribution of capital and selectivity among investors suggests a market that is stabilizing rather than contracting.
Linder noted that Indiana also saw more participation from out-of-state investors in addition to Indiana-based capital.
Technology-focused investments accounted for 77% of all venture capital activity in Indiana, according to TechPoint. Linder added that there is a specific continuation of investment interest in artificial intelligence.
“Those mega deals with AI hyperscalers took over a significant amount of the venture capital dollars that were invested across the country,” she said. “As a result of that, Indiana’s performance this year did decline largely because … the companies that are doing really great work developing new AI products in Indiana are at the earlier stages, so we’re seeing continued activity at that early stage level.”
Linder said a primary challenge for investors is predicting what the future is going to look like, especially with the pace of change in AI, which makes it difficult to decide where they will spend their money. That also creates challenges for entrepreneurs looking to build a product that meets investors’ needs.
Despite the challenges, TechPoint said Indiana’s tech ecosystem is “positioned to convert disciplined investment and sector depth into durable, long-term growth.”
Deal of the Year finalists announced
TechPoint also unveiled the finalists for the 2025 Deal of the Year at this year’s Mira Awards, which will be presented on April 24.
The top venture capital deals include Markle-based Sortera Technologies securing $45 million in later-stage VC investment. Additionally, Indianapolis-based Fiber Global closed on a $20 million Series A round, while BiomEdit in Greenfield completed an $18.6 million Series B round.
The top merger and acquisition deals in 2025 were:
- Evansville-based MetroNet was acquired by a joint venture ($4.9 billion) between T-Mobile and New York-based investment firm KKR.
- Indianapolis-based SEI Archway family office services was acquired by New York City-based Aquiline for $120 million.
- Indianapolis-based software provider GeoH received a majority investment of $30 million led by Council Capital, with participation from Boomerang Ventures and VisionTech Partners.
- Springbuk, a health-benefits analytics company founded in Indianapolis in 2015, was acquired by Truven, another health care data and analytics company, for an undisclosed amount.
- Indianapolis-based TRS Group Inc. was acquired by Chantilly, Virginia-based Parsons Corp. in an all-cash transaction valued at $36 million.
You can connect to the full 2025 Venture Report by clicking here.
IBJ’s Holly Hays contributed.
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