VisionTech and Elevate Ventures Partner to Expand Investment in Hoosier Startups
INDIANAPOLIS, IN – VisionTech Partners has been selected to participate in Elevate Ventures’ Indiana Seed Fund, a state-supported investment fund that encourages growth among angel investor groups and privately-managed early-stage investment firms and promotes investment in Indiana-based high-potential startup companies, thereby strengthening the State of Indiana’s entrepreneurial and investment network. The move effectively doubles the amount of capital VisionTech Partners is able to invest in any eligible Indiana-based company.
Elevate Ventures, in partnership with the Indiana Economic Development Corporation (IEDC) and with funding provided by the U.S. Department of Treasury’s State Small Business Credit Initiative, launched the Indiana Seed Fund in late 2014 with $5.5 million in total available capital to co-invest in fully-vetted, Indiana-based startup companies alongside selected investment groups. Participating investment groups are chosen based on stringent criteria, including the ability to invest at least $250,000 in Indiana companies by September 2016, by an evaluation committee coordinated by the IEDC. VisionTech Partners is among the first cohort of investment groups selected to participate in the program.
VisionTech Partners Managing Director Oscar Moralez said his group would invest through VisionTech Angels and a separately funded sidecar fund. Elevate Ventures will co-invest with VisionTech up to $500,000 per deal. “The Indiana Seed Fund raises the ceiling on the amount we can invest in a single qualified company, from $500,000 to $1 million. This will strengthen our deal flow and allow us to provide additional support to promising Indiana companies requiring more capital.”
Moralez added that the Indiana Seed Fund significantly lessens the burden of fundraising for entrepreneurs. “They can raise more capital with less effort,” he explained. “It is one more reason for entrepreneurs to come to VisionTech for their investment needs.”
“Indiana Seed Fund is one of Elevate’s primary co-investment vehicles similar to a fund-of-funds setup,” said Chris LaMothe, who will begin his tenure as Chief Executive Officer of Elevate Ventures in July of this year. “We look to partner with organized angel groups and investment firms with solid fund management experience and a credible investment track record. VisionTech’s established angel group investment activities and its domain and operational expertise can help drive more high-growth opportunities in Indiana’s entrepreneurial ecosystem,” LaMothe added.
Elevate Ventures operates two direct investment programs and two fund-of-funds programs, targeting seed and early-stage Indiana-based investment opportunities, and has over 40 companies in its direct investment portfolio.
VisionTech Angels has four chapters across the State of Indiana: Bloomington, Indianapolis, Lafayette, and Warsaw. With more than 65 active investors and $1.4 million in deployed capital in 2014, VisionTech Angels is the largest and among the most active angel groups in the State.