Minnesota’s tech startup funding hits record highs – Q2 2013 Cap Review

by Jeff Pesek

Categories

pile-of-moneySixty-one different local tech ventures raised over $65m during the second quarter of this year, according to verifiable information collected and analyzed from the period of April 1 through June 31, 2013.

Both the number of unique firms that received capital and the cumulative funding amount are the highest on record for Minnesota.

The data on Minnesota’s tech investment activity is compiled from multiple sources, with actual numbers estimated to be even higher according to investors who don’t disclose their transaction activity for one reason or another.  While imperfect, these quarterly capital reviews are a consistent proxy of current local funding activity.

Capitalization means and methods for Minnesota tech companies are increasingly coming from outside the traditional venture capital route — a sign that the real early stage tech market is blossoming.  Although VC is critically important and still very relevant, there was a mix of crowdfunding, accelerators/seed capital, federal funding, and plenty of angel investor activity.

The largest rounds in the quarter went to KeyedIn Solutions ($16m), RedBrick Health ($15m) and Sport Ngin ($6m).  Excluding the those and the three smallest deals, the average would be around $488k.   From apps to fiber to hardware and just about everything in between, there’s a diversity of ventures represented.

In addition to a report claiming that Minnesota has the third most funded tech Kickstarter campaigns, we witnessed two new angel funds emerge: Arthur Ventures 2 and Skyway Fund — further indicating improved market conditions for both the investors and entrepreneurs.

As a comparison, during Q1 of this year, 24 different tech ventures had raised $28m, while in in Q2 2012, 37 ventures raised $28m.  By both measures, month to month and year over year, the numbers are up…but be prepared for a Q3 correction, however, considering that Minnesota’s 25% Angel Investor Tax Credit (AITC) expired during this quarter.

Company / Amount / Date / Source

Sport Ngin – $6m – 4/2 (VC)

ReconRobotics – $252k – 4/2/13 (unknown)

RedBrick health – $15m – 4/13 (VC)

HealthCare Impact Associates – $2m – 4/23 (unknown)

Anser Innovation – $225k – 4/26  (angel)

Zivix – 178k – 4/29 (crowdfunding)

iNeuron (Andiamo) – $25k – 5/16 (crowdfunding)

Primordal – $849k – 5/5 (SBIR)

Spark Core – $567k – 6/1 (crowdfunding)

MobileRealtyApps – $1m – 4/29 (angel)

TrackIF – $1m – 6/14 (angel)

KeyedIn – $16m – 5/31 (VC/Inst)

Cympel – $20k – 6/5 (accelerator)

HealthSense – $5.9m – 5/23 (unknown)

Docalytics – $20k – 5/30 (accelerator)

Activiation Life – $40k – 5/17 (unknown)

Vios Medical – $1.7m – 6/24 (unknown)

3D Sports Technology – $50k – UNKQ2/AITC

Adestinn – $470k – UNKQ2/AITC

Alignamite – $12.5k – UNKQ2/AITC

Apruve – $150k – UNKQ2/AITC

Argos Risk – $180k – UNKQ2/AITC

Asset Record Company – $350k – UNKQ2/AITC

AsystMe – $60k – UNKQ2/AITC

Avabar – $247k – UNKQ2/AITC

Awear Technologies6 – $10k – UNKQ2/AITC

Brilliant Nations – $25k – UNKQ2/AITC

ByME – $225k – UNKQ2/AITC

CasTT – $180k – UNKQ2/AITC

Conservis – $400k – UNKQ2/AITC

DealCurious – $80k- UNKQ2/AITC

Drive Power – $225k – UNKQ2/AITC

eLumen Collaborative – $1m – UNKQ2/AITC

Empathic – $945k – UNKQ2/AITC

Energy Resource Insights (QuadROI) – $25k- UNKQ2/AITC

Epacca- $25k – UNKQ2/AITC

Exosite – $1.438 – UNKQ2/AITC

Fitness on Request – $275k – UNKQ2/AITC

Foodsby – $175k – UNKQ2/AITC

For My Children – $60k – UNKQ2/AITC

IndusTrack – $170k – UNKQ2/AITC

IVDesk - $435k – UNKQ2/AITC

LocaLoop – $1.5m – UNKQ2/AITC

Luminat – $550k – UNKQ2/AITC

MinuteBids – $50k – UNKQ2/AITC

myIceberg – $50k – UNKQ2/AITC

Naiku – $90k -UNKQ2/AITC

Nimbelink – $63k – UNKQ2/AITC

Novu – $2.2m – UNKQ2/AITC

Otterology – $244k – UNKQ2/AITC

Packet Power – $100k – UNKQ2/AITC

PreciouStatus – $100k – UNKQ2/AITC

QFO Labs – $85k – UNKQ2/AITC

RowBot Systems – $145k – UNKQ2/AITC

Seeonic – $500k – UNKQ2/AITC

StoryWorks on Demand – $50k – UNKQ2/AITC

Tarsier – $50k – UNKQ2/AITC

The Learning Bank – $350k – UNKQ2/AITC

Third Iron – $400k – UNKQ2/AITC

Thrill On – $480k – UNKQ2/AITC

Vital Simulations – $395k – UNKQ2/AITC

Comments

  • Rob Weber

    That’s good news for start-ups locally. Excellent summary Jeff!

  • David Bagley

    Great stuff – Thanks jeff

  • Justin Porter

    Great work!

  • Frank Jaskulke

    Great news! We are seeing similar (though not as strong) numbers for the medtech community as well (more soon).

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