The Role of Technology in Attracting Venture Capital
Let’s get real for a minute. If you’re building a business in 2025 and you’re trying to attract venture capital, you better believe technology is going to be a major part of that conversation. This isn’t just about having an app or a website. We’re talking real innovation — scalable systems, smart automation, and game-changing solutions.
If you want to raise capital, especially from a fund like Innoventure Iowa, here’s what you need to know about why tech matters and how you can bring it into your business.
Why Tech-Enabled Businesses Get Funded
At the Dream City workshop, the Innoventure team was straight up about it:
“There needs to be some type of technology component into what you’re doing for us to even be interested in investing, because technology is really the catalyst”.
They’re not alone in this thinking. Venture capital is designed to fund high-growth, high-return opportunities. Tech is what makes that scale possible.
- Tech can automate and optimize operations
- It opens doors to global markets
- It creates defensibility through innovation
And maybe most importantly? It signals ambition. You’re not just building for now. You’re building for what’s next.
Examples of Tech-Based Business Models
Innoventure Iowa’s current portfolio includes about:
- 60% software companies
- 20% biotech
- 20% hardware/manufacturing
So what does that look like in practice?
Here are a few tech models that VCs love:
- SaaS (Software-as-a-Service): Monthly recurring revenue and low overhead make this a dream.
- Marketplaces: Think Uber or Etsy — tech that connects people and creates value in the middle.
- Health Tech & Biotech: Innovation in diagnostics, therapeutics, or even agricultural tech.
- Hardware with a data play: IoT devices that collect, analyze, and improve operations.
- AI-powered solutions: Predictive tools, automation, or personalization engines.
Even Iowa-grown companies like Roboflow (computer vision) or VolunteerLocal (volunteer scheduling software) are examples of what happens when local founders build tech that solves real problems.
Integrating Technology into Traditional Businesses
Now, don’t worry if you’re not a tech founder. The beauty is, you can layer in tech without starting from scratch.
Let’s say you run a logistics company. You could:
- Use AI to predict delivery routes
- Build a dashboard for clients to track packages in real-time
- Offer APIs for third-party integrations
Or maybe you run a farming operation. You might:
- Develop a soil sensor that gives live feedback
- Build an app to schedule and track harvest logistics
- Use drone tech for crop inspections
The point is this: every business is a tech business now, or at least it can be. In the words of Innoventure’s team:
“I would be shocked if you didn’t have a tech component to your startup idea. Because every business, in my opinion, is a technology business”.
It’s not about being flashy. It’s about being scalable, efficient, and future-ready.
Wrap Up
Technology is the key that unlocks venture capital. It’s what makes your business not just a good idea, but a fundable one. Whether you’re building from the ground up or layering tech onto a traditional model, now’s the time to start thinking like a tech founder.
