Groove Capital has officially closed a $7.5 million raise for its first fund for early-stage startups. Groove didn’t detail exactly where the funds came from, but founder Reed Robinson told Twin Cities Business, “It was a lot of people who have had their own success in tech – a combination of entrepreneurs, people working in tech, former and current c-suite types.” Robinson also noted that most, but not all, investors are from Minnesota.
Of the fund, Robinson said Groove expects to deliver capital to more than 50 companies. The firm has already provided $3 million to 30 companies over the past year.
Founded 2020, Groove focuses on pre-seed investments with an average check size of $50,000 to $100,000. Robinson wrote about his perspective on pre-seed funding in Minnesota in a his “Mind the Gap” series right on here on tech.mn. Read the four-part series:
- Part 1: Mind the Gap: The Problem With Early-Stage Startup Funding
- Part 2: Mind the Gap: Formal Pre-Seed Investments Are Lacking
- Part 3: Mind the Gap: We Need More Minnesota Angel Investment
- Part 4: Mind the Gap: 5 Steps to Increase Pre-Seed Investing
And listen to more about Robinson and Groove on The tech.mn Podcast.