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HG Ventures operates as the corporate venture capital arm of The Heritage Group (THG), a family-owned company with over 90 years of history based in Indianapolis, Indiana. Launched in February 2018, HG Ventures has been active for eight years, focusing on strategic investments that align with THG's core and adjacent businesses. The firm primarily utilizes evergreen balance-sheet capital, distinguishing itself from traditional GP/LP funds.
As of 2025, HG Ventures has deployed over $200 million across 30 to 35 portfolio companies. The firm is headquartered in Indianapolis and is backed institutionally by the Fehsenfeld family, who own The Heritage Group. This backing provides HG Ventures with a unique operational pull-through into THG's various industrial sectors, including asphalt, environmental services, fuels, and specialty chemicals.
HG Ventures targets investments in sectors that align with The Heritage Group's core businesses, including materials, infrastructure, environmental solutions, and industrial systems. The firm typically invests in companies at the Series A stage through to growth, with initial check sizes ranging from $1 million to $10 million, and potential follow-on investments exceeding $20 million for companies that demonstrate a strong fit.
Geographically, HG Ventures primarily focuses on the United States but remains opportunistic in global markets. The firm has a notable emphasis on cleantech and climate tech, particularly in the context of industrial decarbonization rather than consumer-focused solutions. Their investment thesis emphasizes sustainability, aiming for innovations that are safer, smarter, and more sustainable.
HG Ventures has built a diverse portfolio of companies, focusing on sustainable industrial innovation. Notable portfolio companies include:
Additionally, eight of the 30+ portfolio companies have emerged from The Heritage Group Accelerator, which serves as a proprietary deal flow source for HG Ventures.
Kip Frey — Managing Director. Kip was recruited from North Carolina to launch HG Ventures and has over seven years of experience in venture capital. He leads the firm’s investment strategy and operations.
Mitch Black — Entrepreneur-in-Residence. Mitch serves as the first EIR at HG Ventures, bringing entrepreneurial insights and expertise to the firm.
In 2025, HG Ventures led a $7 million Series A investment in FREDsense, a company specializing in water quality monitoring sensors. They also participated in a $10 million Series C round for ElectraMet, which focuses on wastewater metals recovery. Additionally, HG Ventures led a $2.3 million extension round for PinPoint Analytics.
The firm has shown a strong follow-on investment cadence, completing 10 follow-ons in 2025, indicating a disciplined approach to supporting their portfolio companies.
What are HG Ventures' investment criteria?
HG Ventures focuses on sectors aligned with The Heritage Group's core businesses, including materials, infrastructure, environmental solutions, and industrial systems. They typically invest in Series A through growth stages, with initial checks ranging from $1 million to $10 million.
How can I pitch HG Ventures?
While specific contact information is not publicly available, founders are encouraged to reach out through professional networks or industry events where HG Ventures may be present. A well-prepared pitch deck highlighting the alignment with their investment focus is advisable.
What makes HG Ventures different from traditional VCs?
HG Ventures operates as a corporate venture capital firm, which allows them to leverage operational synergies with The Heritage Group's industrial businesses. This strategic advantage provides portfolio companies with direct access to THG's customer and partnership channels.
What is the geographic scope of HG Ventures?
HG Ventures primarily invests in the United States but is open to opportunities globally, particularly in sectors that align with their sustainability narrative.
What is HG Ventures' follow-on investment strategy?
HG Ventures has demonstrated a strong commitment to follow-on investments, having completed 10 follow-ons in 2025 alone. This indicates their confidence in existing portfolio companies and their willingness to support growth.
What is the typical fund size and check size for HG Ventures?
HG Ventures has deployed over $200 million across its portfolio, with initial check sizes typically ranging from $1 million to $10 million, and potential follow-on investments exceeding $20 million for strong fits.
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