The fund by entrepreneurs,
The Big Idea
Boomerang Ventures was formed to provide capital and other critical resources to aspiring entrepreneurs that are developing big ideas in specific sectors that have traditionally made the Midwest strong. We also aim to generate a high level of capital appreciation for our investors, primarily by making minority investments in privately held companies in life sciences, agricultural technology, advanced manufacturing, and logistics sectors of the Midwest. Our focus will be on identifying emerging technologies like artificial intelligence, machine learning, Internet of Things (IoT), Block Chain, automation and robotics; technologies that are innovating and reshaping these industries.
Our Focus: the Midwest
The Midwest region delivers the highest overall return on investment of any region in the US yet had less than 5% of total 2018 venture capital dollars invested and less than 10% of the venture capital deal flow in the US. Innovation, talent, and resources are strong – a natural extension of a region that makes things, moves things, and grows things. The two most significant drivers of this investment success are operating expenses and valuations for startups.
- Capital Efficiency: the capital needed to start, operate and scale a business in the Midwest is 42% less than in San Francisco
- Reasonable Valuations: when compared to the Midwest, investors in California have to invest 2.2x more capital to maintain 10% ownership from Seed to Series C.
Back Home Again in Indiana
Boomerang Ventures is based in Indianapolis, Indiana, and supplies vital, early to mid-stage capital to Midwest entrepreneurs in emerging technologies and evolving market sectors. Indiana ranks #1 in the US in percentage of both GDP and workforce in manufacturing and ranks #1 in total goods moved in transportation/logistics. It ranks #2 in life science exports in the US and #10 in total agricultural output.
This fertile infrastructure generates and nurtures the best ideas, but with limited capital, the ecosystem has and continues to be incomplete, and these valuable opportunities in many cases, find their way to regions outside of the Midwest. Recent successes and recognition of the value of startups in this region have served as the foundation for the explosive-growth currently unfolding across the Midwest. This is the opportunity for Boomerang Venture Fund investors.
It goes further by creating a network of entrepreneurs and critical resources to help support our portfolio companies to the next stage. The ecosystem starts with Fund Managers who are experienced entrepreneurs and portfolio managers and is further strengthened by other successful entrepreneurs through the Boomerang Entrepreneurial Advisory Council. This alignment helps guide the entrepreneurs in our portfolio companies, by opening extensive networks and adding knowledge to refine concepts into delivery and moving them toward a successful harvest. Our philosophy is to play a very active role as an investor in each of our portfolio companies because our experience has demonstrated the importance of our participation. With each success, the ecosystem of talent, resources and capital expands generating more opportunity…that’s the boomerang effect.