Arthur Ventures launches $45m software fund, opening Minneapolis office

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Arthur Ventures

Fargo, North Dakota VC firm Arthur Ventures has closed on their second fund (AVII) and now has $45m in dry powder to put behind tech startups.

“Our goal is to discover the best enterprise software applications and software in healthcare, agriculture and the energy space,” says Arthur Ventures Managing Partner James Burgum.   Arthur is looking at $1-3m per round in startups with “some market traction.”

Arthur had cashed its first $11m fund (AVI) in six companies and stretched-out another $9m in additional capitalization.   Half of those investments (Preventice, Workface, LiquidCool) were made in Minnesota, considering that as much as 40% of their deal flow is sourced here.   Between AVI and AVII, Arthur is up to ~$65m in venture capital, a significant amount relative to their location.

KC Associates

The point people far as Minnesota tech entrepreneurs are concerned will be Burgum, Andy Christensen and Patrick Meenan, who will be spearheading the Minneapolis office scheduled to open this year.

“For the entrepreneurs, having an office in Minneapolis means a more direct and consistent line of communication with the firm. For us, its going to offer a deeper understanding to the local market and a formalized presence here,” he says.

“Raising this fund is a testament to the strength and momentum of the broader region,” Christensen notes, pointing to Hyde Park Venture Partners and Chicago Ventures (formerly I2A) similarly recent closings.

Arthur’s localized interests compliment South Dakota’s eyes and Dundee’s hunt (which recently pulled Cympel into its net).

“We want the tech ecosystem across the Midwest to thrive,” Burgum says.  “…and Minneapolis is right in the center of it all.”

Comments

  • lieflarson

    I want to congratulate Arthur Ventures on the new fund and commend them for their investments in the region. I have been working with Arthur Ventures in some capacity for the last four years and I’ve been incredibly impressed not just in the dollar resources, but also the human resources, they are committing to help entrepreneurs succeed.

  • http://twitter.com/casey__allen Casey Allen

    Enterprise startups, are you paying attention?

    This is the third MN fund this year launched so far. Three eight figure funds, all early stage tech, all with a bent towards enterprise, all ready to rock.

    This is beyond huge if you’re a B2B startup. This is a year to remember.

    I’m positively stoked. Congrats to the Arthur crew for persevering and succeeding at assembling this fund. For a firm that’s only been around less than five years this could not have been an easy feat.

  • Justin Barrett

    Congrats to Arthur Ventures! A great team and absolutely supportive of entrepreneurs.

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