Q1 2017 Capital Review: 22 Ventures Raised ~$51 Million


dundee research underwriterAt least 22 different Minnesota tech ventures received a combined $51m of investment capital during the first quarter of 2017 according to information collected and analyzed from January 1 – March 31, 2017.

This research underwritten by Dundee Venture Capital provides our readers with unparalleled transparency into the funding facts of Minnesota’s tech industry.

It’s compiled from multiple sources as proxy of local market activity: crowdfunding, incubators/accelerators, angel investments, venture capital, corporate arm and private equity. Consider it a worse case scenario as there are always undisclosed transactions not included; therefore the actual figures are higher, although unknown.

+At a high level: the number of unique companies was down from the previous quarter (48) and year over year (33) — thought the aggregate raise is up from $39m in Q4 and $46m YoY.

+ The three largest rounds were: Netgain ($25m), Foodsby ($6m), and Ambient Clinical Analytics ($5.4m).

+ Corporate VC activity notably increased: Allianz Life, Best Buy, Mayo and Blue Cross all made headlines.

+ Out of state capital came from New York, Nebraska, Utah, Illinois, North Dakota, Kansas City and Connecticut.

+ B2B dominated (again), HealthTech led the pack, and majority of funding went to early/mid stage firms.


A Roundup of financial related news from Q1:

+The Minnesota Cup launches with a few hundred thousand in prize money for winning startups.

+Entrepreneurs & investors gathered for the Midwest Capital Call. Nothing was on the record, though attendee Ashley Kruempel caught a good still shot of the experience.

+Minnesota tech entrepreneur Bryn Erickson brought the humility in his “How I did it”.

+ Gene Munster becomes a VC discusses Loup Ventures + backs Neurablecreates a novel investment technique.

+Allianz’s corporate venture arm makes its first deal…in Kansas.

+Mayo doubled down on Silicon Valley digital health startup AliveCor and participated in series B for AI startup Sense.ly.

+Patrick Meenan went for a ride with Jeff Martin

+Dundee Venture Capital, Matchstick Ventures, and Best Buy Capital backed Techstars/Target Accelerator alumni Addstructure.

+Come Up Capital went down.

+NetGain CEO Scott Warzecha expanded on their $25m PE deal.

+Eric Martell is the new face of gener8tor in Minneapolis.

+Arthur Ventures is closing in on $50m fund 3

+Q&A With Minnesotas most active HealthTech investor by portfolio size: TreeHouse Health

+Half of those polled are ready for equity crowdfunding in Minnesota and MNstarter became the third approved state portal.

+Blue Cross has a new head of HealthTech investments.

+Former Medtronic exec Lonny Stormo talks about capitalizing his new startup POPS!

+Chicago VC Jeff Maters is outside looking in

By the numbers in Q1: