The TECHdotMN Quarterly Capital Review underwritten by RedPath & Company is a comprehensive look at all things money in Minnesota tech every quarter.
For five years running, we’ve been following the paper trail to bring clarity around Minnesota’s investment climate. The review serves as proxy for private funding activity, including: crowdfunding, incubators, angel investments, venture capital,
corporate strategic and equity.
At least 52 different Minnesota tech ventures received $155m+
of investment capital during the fourth quarter of last year according to information collected and analyzed from October through December 2015.
Let’s take a closer look at what happened in Q4 2015:
+Q4 saw a big lift in activity when compared to the previous quarter. Double the number of unique companies represented and double the dollars invested ($153m vs.$73m) [source: Q3 2015 Capital Review].
+Looking at the same period last year (YoY), both the number of companies and their total fundraisings were significantly higher. [source: Q4 2014 Capital Review]. In fact, the level of activity in this quarter was the highest on record for any single quarter.
+The three largest funding rounds during the third quarter were: Code42 – $85m (once again a record round), Site Improve – $27m (counting half considering the geography), and Conservis – $10m (Minnesota’s largest ag-tech play).
+Some local attorney’s weighed in on the prospect of equity crowdfunding, which is coming closer to reality.
+New York angel and Edina native Andrew Mitchell talked about his interest in MN-based startups.
+Mayo Clinic ‘granted’ $100k into two different health tech startups, neither of which are locally headquarted.
+TechStars + Target Retail Accelerator named Ryan Broshar as Managing Director in a move seen as complimentary to his role with Matchstick Ventures.
+Minnesota’s Angel Investor Tax Credit was in full effect this term, as half the companies listed used up some $3m in kickbacks to investors. At the same time, the subsidy is being fairly questioned in terms of actual ROI.
Here’s a list of the companies and their corresponding funding amounts for the quarter: