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