Allos Ventures Closes Allos IV Fund for Midwest Tech Companies

Venture capital firm Allos Ventures has closed the Allos IV fund, which invests in high-growth technology and early-stage B2B software companies in the Midwestern United States, according to a Wednesday (Feb. 16) press release.

The Allos IV fund will target Series A financing rounds but will also be used for seed-stage investments in smaller rounds for startups, the release stated.

“The need for early-stage capital in Indiana and the greater Midwest continues to grow as highly talented founders launch and build innovative and disruptive technology companies,” said Managing Director Don Aquilano in the release.

In addition to Aquilano, David Kerr and John McIlwraith are also managing directors, according to the release. Allos has offices in Indianapolis, Cincinnati and Chicago.

Allos IV investors include the Indiana Next Level Fund, 50S Capital and First Internet Bank of Indiana, as well as several tech entrepreneurs and Fortune 500 executives, the release stated.

Since its founding in 2010, Allos has invested in more than 40 growth companies, according to the release. Among Allos’ notable investments are Lessonly, Assurex Health, Aware, Encamp, OneCause, Rimsys, Authenticx and Maven.

Last week, S&P Global Market Intelligence released an analysis that showed that venture capital funding of U.S. FinTechs almost doubled in both transaction value and volume. The company said the jump in transaction value was especially surprising but cautioned that 2022 could be a different story.

Read more: VC Funding to US FinTechs Doubled in 2021

“Sagging valuations in the public equity market and potential interest rate hikes do not bode well for future investing activity,” according to the report.

“Private capital remained plentiful in January 2022, based on the aggregate total for all U.S. industries, but we will be watching for signs of a slowdown,” the report stated. “The aggregate value of venture capital funding to U.S. financial technology companies soared in 2021, led by startups focused on investment and capital markets technology.”