A New Funding Approach for Indiana Startups

Our friend Gerry Dick at Inside INdiana Business had an interesting conversation with Kristian Andersen and Ice Miller’s Kristine Danz about Gravity Ventures, a seed stage investing fund for technology companies. Watch the video, and here’s a summary:

A seed stage venture fund is investing in Hoosier technology companies with capital from young investors and entrepreneurs. Gravity Ventures has helped Indiana-based startups including Formspring and Compendium Blogware. Co-founder Kristian Andersen and Ice Miller LLP Private Equity and Venture Services Group Partner Kristine Danz talk withGerry Dick about the fund and the changing landscape of startups.

The fund’s typical investments range from $75,000 to $100,000.

Andersen says it is becoming less expensive to launch a technology company.

He points out what used to require $5 million just a few years ago now costs up to $500,000.

Andersen says one example of the lower costs is equipment. People used to spend up to $1 million to buy hardware to help run the business. Today, they can write a check for around $500 to a company like Amazon.com (Nasdaq: AMZN) to take care of those services.