High Alpha Capital Launches $110M Fund

The Growth of Indianapolis' Startup Ecosystem

The development of a thriving startup ecosystem requires numerous contributing factors. Establishing such a system in cities beyond the primary coastal tech hubs necessitates a focused and intentional approach. In Indianapolis, Indiana, this journey began with the founding of ExactTarget in the year 2000.

The subsequent sale of that company to Salesforce for $2.5 billion in 2013 injected significant capital into the local startup landscape.

High Alpha Capital Announces New Funding

Today, High Alpha Capital, a venture capital firm with roots in the ExactTarget acquisition, has revealed a new $110 million fund. The firm specializes in investments within the B2B SaaS sector.

Kristian Andersen, a partner and co-founder at High Alpha, positions this fund within the context of the pandemic and the resulting shifts in business operations.

“We find ourselves in an era of unprecedented disruption, presenting considerable obstacles for individuals, businesses, and society generally. Despite – or perhaps due to – these challenges, our commitment to supporting the next generation of founders remains strong, as they strive to reshape the world through the synergy of entrepreneurship and technology,” Andersen stated.

Key Ingredients for Startup Success

Access to capital is undeniably a crucial component of any successful startup system. Following the acquisition, ExactTarget’s founders possessed substantial resources and Scott Dorsey, a founding member of the firm, explained their vision to construct a comprehensive system.

This system would encompass education, encouragement of entrepreneurial endeavors, development of mathematical proficiency, cultivation of an engineering talent pool, and, crucially, a venture capital firm to facilitate investment.

“I view the essential elements as talent, capital, support, and mentorship. A concentrated focus on talent is paramount, and this is certainly a priority for High Alpha and the Indianapolis market as a whole. Securing capital is the second key, as markets like Indianapolis often face limitations in this area, making our fundraising efforts particularly important,” he explained.

He further added, “Support and mentorship are also vital, and this is precisely what High Alpha is designed to provide. Our team of 40 experts spans design, marketing, product engineering, finance, and HR – representing the Centers of Excellence necessary for launching and scaling a SaaS company.”

High Alpha's Structure and Growth

The firm operates through two distinct divisions. High Alpha Studio functions as an incubator for very early-stage founders, while High Alpha Capital is the focus of today’s announcement.

This represents the company’s third fund. The initial fund, High Alpha One, totaled $21 million. The second, High Alpha Two, reached $85 million. With today’s announcement, the cumulative amount raised across all three funds is $216 million.

While the first two funds primarily invested within the Indianapolis region, the newest fund intends to broaden its investment scope beyond the immediate area.

The firm concentrates on enterprise B2B SaaS companies, providing funding from the pre-seed stage through Series A investments. This allows them to nurture early-stage companies and leverage the experience gained from building ExactTarget into a thriving enterprise.

Portfolio Companies

Notable companies within their investment portfolio include Attentive, SalesLoft, Zylo, Terminus, The Mom Project, Lessonly, LogicGate, MetaCX and Socio.

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