The 2018 Minnesota Tech Funding Halftime Report

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dundee research underwriterAt least 40 different Minnesota technology ventures received a combined $252m of investment capital during the first half of 2018 according to information collected and analyzed from January 1 – June 30, 2018.

This research underwritten by Dundee Venture Capital provides our readers with unparalleled details that surround 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. Did we miss anything? Drop a comment…

At the high level:

  • Compared to the same time period last year – when 50 ventures had raised $250m – the number of unique companies is down 20% and the gross dollar amount raised is essentially on par.
  • Top 10 largest rounds YTD:
Fintech SaaS Firm Connexeo Raises $110m PE From Great Hill Partners 110,000,000
Bind Banks $60m For On-Demand Health Insurance 60,000,000
Bloomington ERP Software Maker KeyedIn Banks $15m In Growth Equity 15,000,000
[Updated] Sezzle Sizes Up A ~12m Equity Round 10,000,000
RxFunction picked up another $3.5m equity 7,500,000
Gravie Raises Millions More & Approaches ~$50m In Total VC 3,400,000
Minneapolis’ SportsDigita Scores Investment From Chicago-based PEAK6 3,000,000
Learn to Live raises $3.7m 2,900,000
Pharma Tech Firm ExceleraRx Raises $2.5m 2,575,000
phData closes $2.5m 2,500,000

 

75 cents on every dollar is going to a post-revenue company

 

The vast majority of deals involve companies that sell business to business.

Equity is clearly the preferred method of capitalization.


2/3 of deals involved companies 5 years or younger.


…and distribution of dollars by stage


Healthtech, Fintech, and Ecommerce clusters lead by deal count


…as seen by dollar share


A list of 38 known investors backing Minnesota Tech ventures (deals YTD):

Triple Tree Capital Partners
Backstage Capital
Arthur Ventures
The Syndicate Fund – 4
Lemhi Ventures
UHG
Techstars Ventures
Matchstick Ventures
Gopher Angels – 2
M25 Group – 2
Village Capital Investments
Angel Marc Belton
Angel Mark Addicks
Angel Jim D’Aquila
DSM Venturing
PEAK6
Mayo Clinic Ventures
Noaber Foundation
Social Capital
Bluestem Capital
Revolution’s Rise of the Rest Seed Fund
Great North Labs – 2
High Alpha
Matchstick Ventures – 2
Next Frontier Capital
Angel Daren Cotter
Arrowroot Capital
Angel Drew Oetting
Green Bay Ventures
Precursor Ventures
FJ Labs
Seahawk Capital
The House Fund
T-Bird Capital
Escondido Ventures
Router Ventures
Volition Capital Great Hill Partners
University of St. Thomas/Norris

Email us info@tech.mn to inquire about raw data downloads and/or custom research.

 

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