Allos Ventures, an Indianapolis-based venture capital firm that invests in early stage, B2B tech companies, has announced that is has raised $40 million for a third fund. Existing investors participated in the round.
The company, which has an office in Cincinnati, plans to use the fund to make additional investments in "promising startup ventures in the Midwest," John McIlwraith, Allos' managing director in Cincinnati, told Cincy Inno. He added that this fund would probably support 20 companies within its lifetime.
Historically, the 2010-founded Allos Ventures has worked with companies across the Midwest, in cities like Detroit, Cleveland, Louisville and Cleveland. In Cincinnati, it's known for its work with Assurex Health (which was purchased by Myriad Genetics for a price-tag of $290 million in 2016), Enosix, Foxtrot Code and Assurex Health. It focuses on providing capital "to accelerate that growth and expand [companies'] teams and grow their market saturation," McIlwraith said.
This infusion of financial resource will be a boon for the region, he continued — and creating that kind of influx was exactly the impetus behind Allos.
"There are wonderful opportunities in the Midwest for startups that are high-potential," McIlwraith said. "One of the missing ingredients is capital ... the ecosystem needs more funds like Allos with more capital to invest [and to] support companies and great jobs. The flywheel will spin, but at this point, capital is one of the missing ingredients."
