Round One Capital

High-Level Overview

Round One Capital is an Indianapolis-based seed fund focused on investing in emerging technology startups that have already received initial seed funding but are not yet ready for larger venture or private equity rounds[1][2]. Its mission centers on supporting early-stage companies by providing capital and strategic guidance to help them scale effectively. The fund targets startups primarily in the tech sector, aiming to bridge the gap between seed funding and more substantial growth capital. By focusing on this critical stage, Round One Capital plays a vital role in nurturing startups that might otherwise struggle to secure follow-on funding, thereby strengthening the regional and broader startup ecosystem[1].

Origin Story

Founded by a group of veteran entrepreneurs and angel investors, Round One Capital was launched to address the funding gap for startups in their early growth phase[1]. Key founding partners include Jay Love (co-founder and CEO of Bloomerang and eTapestry), Gary Rush (former CTO of Angie’s List and Exact Target), Todd Katz (former CEO of Bell-Horn), and Scott Brenton (former president and chairman of Orr Fellowship)[1]. Their combined experience in entrepreneurship and technology shaped the fund’s focus on emerging tech startups. The firm’s evolution reflects a strategic intent to provide not just capital but also mentorship and operational support to startups transitioning from seed to growth stages.

Core Differentiators

• Experienced Founding Team: The fund is led by seasoned entrepreneurs and executives with deep operational and technical expertise in tech startups[1].
• Focused Investment Stage: Targets companies that have passed initial seed rounds but are not yet ready for venture capital or private equity, filling a critical funding gap[1].
• Regional Emphasis: Based in Indianapolis, it supports the Midwest tech ecosystem, which is often underserved compared to coastal hubs[1].
• Strategic Support: Beyond capital, the founders’ backgrounds enable them to provide hands-on guidance and networks to portfolio companies[1].

Role in the Broader Tech Landscape

Round One Capital rides the trend of increasing attention to early-stage tech startups outside traditional coastal hubs, particularly in the Midwest. The timing is significant as more startups emerge in these regions but face challenges accessing follow-on funding after initial seed rounds. By focusing on this underserved segment, Round One Capital helps catalyze regional innovation and economic growth, contributing to a more diversified and resilient startup ecosystem. Its presence encourages more entrepreneurs to pursue tech ventures locally, knowing there is a viable funding path beyond the earliest stages[1].

Quick Take & Future Outlook

Looking ahead, Round One Capital is positioned to expand its portfolio with 30 or more investments planned over the coming years, potentially increasing its influence in the Midwest and beyond[1]. As the startup ecosystem matures, the fund’s role in bridging seed and venture capital stages will become increasingly critical. Trends such as remote work, regional tech growth, and diversified startup hubs will likely enhance the fund’s relevance. Its success will depend on continuing to leverage its founders’ expertise and networks to help startups scale efficiently and attract subsequent funding rounds.

In summary, Round One Capital serves as a vital early-growth stage investor with deep entrepreneurial roots, addressing a key funding gap in emerging tech startups and fostering regional innovation.