Indianapolis-Based Allos Ventures Closes $52M For Third Flagship Fund

Indianapolis-based venture capital firm Allos Ventures has secured $52 million for its third flagship venture capital fund.

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It is the firm’s largest fund to date. Founded in early 2010, Allos Ventures raised $23 million for its first fund and $40 million for its second, the latter of which was closed in 2013.

Allos Ventures is led by three managing directors. Don Aquilano and John McIlwraith co-founded the firm, and David Kerr joined as an MD in June 2018. Julie Whitehead, who joined the firm in 2013, serves as CFO.

An active investor in Midwestern startups, Allos Ventures has a particular focus on B2B SaaS and similar businesses with strong recurring revenue models and potential for growth.

In a statement provided to Crunchbase News, Aquilano said “With our third fund, we’re focused on continuing to support high-growth, Midwest software companies, as well as expanding our portfolio to new areas of the Midwest and entrepreneurs. The Midwest [ecosystem] is thriving and has matured significantly since we launched Allos a decade ago. Experienced entrepreneurs and founders with deep subject matter expertise are at the heart of our investments—companies able to scale rapidly and attract top talent from across the country.”

Based on Crunchbase data and information provided by Allos Ventures, it looks like the firm typically writes its first checks at Series A, with some seed rounds in the mix as well.

The firm says it has already made investments in eight companies out of Fund III. These include 120WaterAudit (Indianapolis), Abre.io (Cincinnati), BlastPoint (Pittsburgh), Curate Solutions (Madison), Docket (Indianapolis), Encamp (Indianapolis), PERQ (Indianapolis) and Sharpen (Indianapolis).

The firm had initially filed paperwork for Fund III with the SEC back in June 2018; the Form D filing stated the firm expected to raise “between $50,000,000 and $100,000,000.”

Last year, The Indianapolis Business Journal reported on Allos Ventures’s progress in raising its third fund. As of January 2019, the firm had raised $40 million for the fund. According to the Indianapolis Business Journal’s reporting from the time, the fund’s limited partners include the Next Level Indiana Fund, the University of Indiana and area technology executives.

The firm has secured an additional $12 million in LP subscriptions in the past year, and closed out its fundraise at the low end of its initial target range. In 2019, the company opened a new office in Indianapolis and took on an associate.

Allos Ventures was named Indiana Investor of the Year at the TechPoint Mira Awards, and is one of the state’s most active investors.

Illustration: Li-Anne Dias