Top Venture Capital Firms in Minnesota: 2024’s Most Active Investors

Minnesota VC Landscape: What Sets It Apart?

Key Industries Attracting Investment

Minnesota’s venture capital scene stands out for its incredible industry diversity. While healthcare is the state’s claim to fame—think digital health, medtech, and life sciences—there’s also deep VC interest in food and agriculture startups, thanks to Minnesota’s farming legacy and food manufacturing giants. “Bold” isn’t just a local buzzword: fintech, clean energy, and SaaS startups from the region regularly secure capital, often fueled by founders with experience at Fortune 500 companies headquartered in the Twin Cities.

Recent Trends in Minnesota’s Startup Scene

What separates Minnesota from other startup markets is its collaborative ecosystem. Local VCs often work alongside angel groups, family offices, and even major corporations to nurture early-stage founders. Over the past year, more funds have launched targeting seed rounds, making it easier for new ideas to find support. Plus, Minnesota’s increasing number of repeat founders—entrepreneurs building their second or third company—has energized local investors who value grit and practical experience over pure hype.

With this distinctive mix of sectors and community-minded approach, it’s no surprise that a select group of investors consistently lead the charge. Let’s take a closer look at the firms shaping Minnesota’s startup future.

Top Venture Capital Firms in Minnesota

Arthur Ventures

Arthur Ventures stands out for championing B2B software founders across the Midwest. With a focus on early growth rounds, their team moves quickly and partners closely with entrepreneurs, helping SaaS startups scale beyond Minnesota’s borders.

Bread and Butter Ventures

Bread and Butter Ventures channels capital into “bread and butter” industries—food tech, health tech, and enterprise software—reflecting Minnesota’s economic strengths. Their active portfolio includes breakout names you’re as likely to find in St. Paul as Silicon Valley.

Gopher Angels

Gopher Angels isn’t a traditional VC firm, but their wide-reaching member network delivers early-stage support, guidance, and capital. Tech, MedTech, AgTech, and consumer startups all find champions here, often becoming some of the region’s next big exits.

Groove Capital

Groove Capital is synonymous with Minnesota’s seed-stage renaissance. They move early and back local founders, backing more first checks in the state than just about anyone—and bringing visibility and hands-on help to pre-seed businesses with fresh ideas.

Brightstone Venture Capital

Established in the Midwest for three decades, Brightstone runs institutional-sized venture funds. From health care to cloud technology, they invest in transformative startups and offer proven connections that open doors in both Minnesota and beyond.

Matchstick Ventures

With a dual presence in Minneapolis and Boulder, Matchstick Ventures is highly active in the Twin Cities ecosystem. They’re relentless scouts for pre-seed and seed opportunities, known for investing before it’s obvious and believing in founders early.

Atland Ventures

Atland Ventures brings generational insight: a unique college student-powered VC, working alongside professional investors and supporting first-time founders. Their investments reflect the next era of tech, consumer, and impact-driven startups coming out of Minnesota.

Traction Capital

Traction Capital partners with founders scaling real revenue—not just chasing the next round. Their operational focus and willingness to back companies beyond software sets them apart in one of the country’s most quietly productive startup scenes.

Great North Ventures

A firm with national reach but strong Minnesota roots, Great North Ventures writes checks for tech ventures that disrupt old industries. Their playbook is equal parts capital and deep-rooted mentorship, helping local companies chase global ambitions.

Vensana Capital

Vensana is a medtech powerhouse. Their team brings expertise from Silicon Valley and Minnesota’s medical alley, targeting medical device, diagnostics, and digital health companies looking to revolutionize patient care.

Cherry Tree & Associates

Cherry Tree & Associates is a stalwart in the state’s investment landscape, often leading deals where other funds follow. Their recent fundraising progress—now nearing $6.5 million—reflects deep relationships and a steady hand for both early- and growth-stage startups.

Split Rock Partners

Split Rock Partners blends Minnesota know-how with national-caliber deal flow. Their portfolio features digital health leaders and fast-growing SaaS companies, often leading investment rounds that draw attention from co-investors across the country.

Of course, capital is only one piece of Minnesota’s startup puzzle. Beyond investors, the state’s entrepreneurs also tap into a vibrant network of programs, grants, and support groups that help founders thrive at every stage.

Startup Resources Beyond VC Funding

Government Grants and Funding Programs

If you’re building a company in Minnesota, you don’t have to rely solely on VC money. Programs like the Minnesota Innovation Loans for Entrepreneurs (MILE) and Launch Minnesota Innovation Grants offer real dollars for young startups—often without demanding any equity. The Minnesota Department of Employment and Economic Development (DEED) makes early-stage funding more accessible through SBIR/STTR matching funds, helping founders who might not have the network to break into venture circles.

Many cities, including Minneapolis and St. Paul, offer their own micro-grants or no-interest loans for local entrepreneurs. These public programs are ideal for bootstrapped teams who need to scale a prototype or run beta pilots before attracting private investors.

Angel Networks and Incubators

Not every pre-seed founder needs a VC right away—especially when Minnesota offers a network of active angel investor groups like Gopher Angels and Twin Cities Angels. These organizations often prioritize regional startups and provide mentoring alongside checks.

Meanwhile, startup incubators and accelerators fill gaps that money can’t. Programs like gener8tor and BETA Minnesota provide months-long cohorts where founders find experienced mentors, get access to educational workshops, and plug into networks that lead to partnerships, first customers, and—eventually—investor introductions. And let’s not forget co-working hubs like Fueled Collective or the Carlson School’s Gary S. Holmes Center for Entrepreneurship: these physical spaces can be just as vital as cash, giving early teams a home base and a built-in founder community.

Navigating the Minnesota startup ecosystem is about much more than hunting for term sheets. But if backing from an active VC is your next milestone, let’s get you acquainted with those making the biggest impact right now.

Ready to Accelerate Your Startup Journey in Minnesota?

Curious which of these Minnesota-based venture capital firms might be the perfect match for your next funding round? Don’t just read the list — use it as inspiration to reach out, make connections, and pitch your vision. The state’s investment scene thrives on personal relationships and bold founders.

Craving an insider’s edge? Subscribe for curated tips, news on the latest Midwest fundraises, and spotlights on founders who’ve broken through in 2024. Get ahead — land in inboxes before your competition even knows which doors to knock on.

You’ve met Minnesota’s frontrunners. Now, let’s dig deeper into the practical steps you can take to land your next meeting — and secure the backing you need to build something great.

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Fundraising in Minnesota: Tips for Founders

How to Connect with Minnesota Investors

Building real connections matters in this tight-knit ecosystem. Don’t blast cold emails—most Minnesota investors respond better to thoughtful, personal outreach. Tap into local networks by attending events like MinneDemo, Twin Cities Startup Week, or industry-specific meetups. These gatherings aren’t just for show; they’re where first introductions often lead to solid partnerships.

Leverage local organizations. Groups like Twin Cities Startup Week, Beta.MN, and local accelerators often know key investors and sometimes make warm introductions for promising founders. Don’t overlook co-working spaces—places like COCO or Fueled Collective frequently host meetups and investor office hours.

If you’re not a Minnesota native, highlight why you’re committed to building your company here. Investors back founders who are plugged into the region, not just passing through for a check.

Common Mistakes and How to Avoid Them

One of the biggest stumbling blocks: approaching VCs before there’s real traction. Most Minnesota firms want proof—revenue, a growing user base, or a concrete pilot—so lead your pitch with evidence, not just ideas.

Another frequent blunder is skipping the research. Each firm has distinct areas of focus (e.g., healthtech, food and agtech, fintech). Sending generic pitches wastes everyone’s time. Review portfolios and only approach investors who have a track record in your sector and stage. Mention a recent portfolio company or news in your outreach to show you’ve done your homework.

Finally, founders underestimate the importance of the local community. Not showing up at ecosystem events or failing to get feedback from Minnesota-based mentors sends the wrong message. VCs look for founders who give back—so volunteer, mentor, or participate where you can. The ecosystem remembers who is invested in the community.

Now that you’re equipped with strategies to approach fundraising locally—and pitfalls to avoid—let’s explore how startups can leverage Minnesota’s robust network of accelerators, grants, and alternative funding sources to kickstart growth before or alongside VC money.

FAQ: Minnesota Venture Capital

How much do partners at VC firms in Minnesota earn?

Partners at Minnesota’s top venture capital firms generally earn total annual compensation ranging from $250,000 up to $1 million or more. The broad range depends on firm size, deals closed, and performance bonuses. Compared to coastal VC hubs, Minnesota partners may earn slightly less in salary, but carried interest on successful exits can be significant, especially in multi-million-dollar seed and Series A rounds.

Which Minnesota cities have the most VC activity?

Minneapolis stands out as the undisputed center for VC activity in the state, fueled by its dense network of accelerators, corporate innovation arms, and research institutions. St. Paul also sees a steady flow of capital, with Rochester and Duluth gaining traction thanks to sector-specific innovation—think medical tech in Rochester. No matter the city, you’ll find a thriving community of founders and investors eager to connect.

Curious about the other resources fueling Minnesota’s startup ecosystem? Read on for diverse funding options and programs that every founder should know.