Minnesota Tech Funding Report Q4 2017: 30 Ventures Raised $27m

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dundee research underwriterAt 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. 

The three largest rounds of Q4 2017 were: Revel ($17m) [Healthtech], Kwibit (MAX4G) ($2.3m) [Hardware] and Oliver Cabell ($1.2m) [Ecommerce].

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:

Notable corporate VC activity for the quarter:

Optum unveils $250m venture fund

+ Tracking Corporate VC activity

…And the snapshot of the local tech companies that raised capital during Q4 2017:


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