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Allos Ventures, an Indianapolis-based venture capital firm focused on Midwest technology companies, announced Tuesday that it has raised $40 million for its latest fund, Allos III, and has begun making investments.
Allos III’s first investment is in Perq, an Indianapolis-based marketing technology firm with about 115 employees. Allos declined to disclose how much it is investing in Perq, which in October announced it raised $5 million in growth capital. Perq markets artificial intelligence-driven software that helps clients generate, track and convert web and in-store traffic into sales.
The Allos III fund received investments from the Next Level Indiana Fund and Indiana University Foundation, as well as prominent tech executives such as David Becker, founder and CEO of First Internet Bank of Indiana, and Mark Hill, managing partner of Collina Ventures and CEO of Lumavate.
While the fund primarily will lead Series A and B venture rounds, it also will join seed-stage investors in smaller rounds for startups.
Allos officials said the fund will focus on early-stage business-to-business software and tech-enabled service companies based in the Midwest.
In June, Allos filed plans with the Securities and Exchange Commission to raise $50 million to $100 million for the Allos III fund. At that time, it also announced the hiring of former Octiv CEO David Kerr, who joined Allos founders Don Aquilano and John McIlwraith as managing directors. Prior to leading Octiv, Kerr held senior executive positions with Groupon, Angie’s List and GHX.
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It’s not clear whether Allos is continuing to raise funds for Allos III. Allos officials said that due to Securities and Exchange Commission regulations, they couldn’t comment.
Allos raised $23 million for its first fund, Allos I, in 2010, and $40 million for its second fund, Allos II, in 2013.
The company has made investments in more than 20 companies since its founding, including Assurex Health, Aprimo, Blue Pillar, Bolstra, Emplify, Lessonly, Lumavate, Octiv, OneCause, Weblink, eTapestry and WebMD.
Allos has achieved several successful business exits, including Cincinnati-based Assurex Health, which was sold to Myriad Genetics for $290 million; Detroit-based PeachWorks, which was sold to Beyond; Indianapolis-based Octiv, which was acquired by Conga; and Chicago-based Revenew, which was sold to Aprimo.
Previous fund investors include a number of wealthy tech entrepreneurs and institutional investors such as the Indiana University Foundation and Purdue University.
“The human capital in our state and region is incredible, and we have the opportunity to invest in passionate, Midwest entrepreneurs who build innovative and disruptive companies,” said Aquilano, an Allos co-founder. “Building startups to financial success has positive, community-wide implications, and we’re proud to continue supporting the ecosystem in Indiana and the Midwest with Allos III.” 28