At least 30 different Minnesota tech ventures received a combined $27m of investment capital during the fourth quarter of 2017 according to information collected and analyzed from October 1 – December 31st, 2017.
This research underwritten by Dundee Venture Capital provides readers with unparalleled transparency into the funding facts that surround 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.
Compared to the prior quarter — both the volume of companies (42 in Q3) and the combined amount raised ($59m in Q3) are way down, and YoY vs. Q4 2017 (38 companies & $39m in Q4 2017) is also considerably lower.
While this does cause pause for consideration, one quarter doesn’t mean much as a given instance; keep an eye out over the next 30 days for a complete tally and analysis of all Minnesota Tech fundraising activity for 2017 and how that compares/contrasts to previous years; that will say much more.
Looking ahead the market will continue to evolve in a more natural and sustainable way absent of the investor tax credit in 2018. This could mean very well result in less overall activity, though sounder investments made more on the merit and less on welfare incentives for the wealthy.
Financial highlights for the quarter include:
- The Aging Startup Challenge Will Give $25k To The Winning Venture
- Q&A With Revel CEO Jeff Fritz On The $17m Round
- Techstars New Farm to Fork Accelerator Is Launching In MSP With Cargill & Ecolab
- Gopher Angels Backs More MN Tech Startups, Names New Leader, And Supports Student Fund
- Three active local investors — Treehouse Health, Arthur Ventures, and Matchstick — all invested during the period, though outside Minnesota.
Notable corporate VC activity for the quarter:
…And the snapshot of the local tech companies that raised capital during Q4 2017: