Capital Formation

Access to capital for Indiana entrepreneurs, particularly early‑stage capital, continues to be the most pressing challenge to financing new Indiana business investment and job creation, especially in capital‑intensive, technology‑based enterprises.  In addition, the State must develop a robust infrastructure for entrepreneurial support to increase chances for business success.

Indiana must foster the creation and growth of new, entrepreneurial companies and encourage the development of a vibrant Indiana‑based venture capital community.  Additionally, it is important for policymakers to create a state tax regime where Indiana's tax rates – both in absolute terms and relative to other states – are business‑friendly, enhance our state's economic competitiveness and create new incentives for early stage investments.

Capital Formation Recommendation:

• Implement a program using contingent tax credits to entice private investors to put money into a fund that would invest in new businesses that commit to establishing a presence in Indiana.