What You Should Know
- The News: Crossroads Health Ventures (CHV) has launched a new early-stage venture fund with over $21M in capital to support Indiana-based life sciences startups.
- The Backers: The fund represents a rare collaboration between the state (IEDC), academia (Indiana University), and three global industry leaders: Eli Lilly (human health), Elanco (animal health), and Corteva (plant health).
- The Strategy: CHV aims to bridge the early-stage funding gap for companies operating at the intersection of “One Health,” capitalizing on Indiana’s status as the top U.S. exporter of life sciences products. Capital deployment begins in early 2026.
Bridging the “Valley of Death”
For decades, the Midwest has suffered from a capital disconnect. While universities like Indiana University (a partner in the fund) produce world-class IP, startups often die in the “Valley of Death”—the period before they are mature enough to attract coastal venture capital.
CHV is designed to function as a bridge. With plans to invest in 15–20 early-stage companies, the fund isn’t just offering capital; it’s offering “proprietary deal flow” and mentorship from the corporate giants backing it. This model allows startups to survive the volatile early years while remaining in the local ecosystem, rather than relocating to Boston or the Bay Area to chase funding.
The “One Health” Supercluster
The involvement of Elanco, Lilly, and Corteva suggests a strategic alignment that goes beyond philanthropy. These corporations are effectively outsourcing a portion of their innovation pipeline to the local startup ecosystem.
Jeff Simmons, President and CEO of Elanco Animal Health, calls the initiative a pipeline for “next-generation technologies.” By leveraging a “One Health” ecosystem—where insights in animal biology might inform human therapeutics, or plant genetics might solve nutritional challenges—CHV is creating a feedback loop that benefits all three sectors.
“We believe Indiana is the most ideal location to accelerate life sciences innovations given the collaboration of leading global companies,” Simmons noted.
A Sovereign Strategy
The fund is also a piece of a larger economic puzzle. With the State of Indiana investing through the Indiana Economic Development Corporation (IEDC), the government is doubling down on its strongest export sector.
“This collaborative initiative is a transformative opportunity to propel Indiana’s already strong One Health economy,” said Secretary of Commerce David J. Adams.
By aligning state money with corporate expertise, Indiana is attempting to “moneyball” the venture capital model—using strategic partnerships to de-risk investments in a way that traditional VC firms cannot. If successful, CHV won’t just generate returns for its partners; it will cement Indiana’s reputation as a global command center for the entire biological spectrum.
“Indiana is one of the nation’s strongest and most vibrant life sciences hubs,” says Vince Wong, President and CEO of BioCrossroads and CHV. But Wong acknowledges a structural weakness that plagues even the most robust R&D hubs: the gap between the lab bench and the Series A. “Crossroads Health Ventures fills a critical early-stage funding gap to help translate breakthrough ideas into high-growth Indiana companies.”
