tech.mn – Groove Capital Raises $3.8 Million

What to know about the first Groove Capital raise:

• The investment firm, focusing on pre-seed investments and founded by BETA co-founder Reed Robinson, closed the round at $3.8 million
• According to a report, the round exceeded expectations by more than $1 million
• Specific investors weren’t named but reportedly include mentors, entrepreneurs, and higher-ups at large Minnesota companies

Robinson launched Groove Capital in August 2020 with the goal of offering pre-seed funding to early-stage startups in the range of $50,000-$100,000. The firm hasn’t distributed any funds yet.

In Robinson’s guest series, “Mind The Gap,” he broke down the current pre-seed scene in Minnesota and what he thinks can be done to help it thrive. You can read all four parts now:

• Part 1: The Problem With Early-Stage Startup Funding
• Part 2: Formal Pre-Seed Investments Are Lacking
• Part 3: We Need More Minnesota Angel Investment
• Part 4: 5 Steps to Increase Pre-Seed Investing

Shortly after the launch of Groove Capital, Robinson also appeared on The tech.mn Podcast. Listen to his episode to learn more about the firm’s goals.