Yeah I'm familiar with the area (about to move from South Bend to Chicago). There's a lot of effort going into building a startup scene in South Bend, both around the Innovation and Ignition Park developments and at Notre Dame. At least a few of the companies that I'm familiar with (Vennli, Carextech) have gotten traction; the existing economy there is pretty manufacturing-heavy, especially around auto, appliances (Whirlpool) and medical devices (J&J has pretty big presence in Warsaw).

I might try and work through the area colleges (St. Mary's, Notre Dame, IU South Bend) if you're looking to recruit there.