Top Minnesota IT Startup Investors

Minnesota is a tech hub and home to numerous IT companies and startups. Some of its major corporations like Artic Wolf, Target, Best Buy, and 3M have been known to generate over $500M-$1B in the past decade.

Moreover, The IT sector contributes approximately $13.5 billion to Minnesota’s GDP. In 2019, the same sector accounted for 380,263 jobs, making up 12.4% of Minnesota’s total non-farm employment.

Thinking about who’s supporting all this growth for the past decades?

Well, it’s the startup investors. But, not all investors have identical investment interests.

That is why we have come up with the list of top startup investors in Minnesota, categorized as per their total investments and active involvement. 

Discover The Top 6 Startup Investors in Minnesota Who Fund IT Startups

Gopher Angels

• Contact: info@gopherangels.com
• Website: Gopher Angels ⋆ The Most Active Investors and Partners in the Midwest
• Focused Sectors: Data Storage and Management, Virtual/Augmented Reality, AI/Machine Learning, Enterprise Security, Blockchain, Cloud Infrastructure, Marketplaces, Regenerative Medicine, Stem Cell, Next Gen Diagnostics, Genomics/Gene Editing, Medical Devices, Drug Discovery Tools and Platforms, Personalized Medicine
• Funding Stages: Early/Seed
• Present in: Minnesota
• Notable Investments: Zipnosis, Foodsby, StemoniX, and Augeo
• Total Investments: 68

Gopher Angels was founded in 2012 by Dan Mallin and David Russick in Minneapolis. It operates as an angel investment network, supporting early-stage startups that introduce modern tech ideas.

Gopher Angels has funded over 60 startups. The team of investors focuses on startups that have a strong management team, scalable business models, and a clear growth path. They seek companies that can demonstrate product-market fit, often focusing on sectors like healthcare, technology, and consumer goods.

Currently, Gopher Angels prefer to invest in seed and early-stage companies, with typical investments ranging from $250,000 to $1 million, though they are open to larger syndications.

Great North Ventures

• Contact: info@greatnorthventures.com
• Website: Venture Capital Fund - Invest in Startups - Great North Ventures
• Focused Sectors: Tech, AI, software Computer, Network Security, Software, Delivery Service, Logistics, Retail Technology, Cyber Security, SaaS, Security, Advertising, Marketing, Messaging, and digital health
• Funding Stages: Early/Seed
• Present in: Minnesota
• Notable Investments: FactoryFix, Branch, LeadSherpa, and Dispatch
• Total Investments: 36

Founded in 2017 by twin brothers Ryan and Rob Weber, Great North Ventures aims to accelerate the growth of startups in underserved regions, particularly in the Midwest.

When funding startups, they focus on early-stage ventures with cutting-edge solutions. They look for companies that can disrupt traditional industries through innovation.

The investment range of Great North Ventures can go up to $5M.

Groove Capital

• Contact:  info@groovecap.com
• Website: Groove Capital | Minnesota's First Check Fund
• Focused Sectors: Artificial Intelligence, CRM, Health Care, Machine Learning, Consulting, Developer Tools, Information Technology, Information Services, InsurTech, Biotechnology, Analytics, Personal Health, Clinical Trials, Life Science, Software, SaaS
• Funding Stages: Early and Seed
• Present in: Minnesota
• Notable Investments: Phenomix, Stigma App, Token of Trust, and Investiv
• Total Investments: 34

Groove Capital was founded in 2020 by Reed Robinson, who is also known as the founder of Twin Cities Startup Week. 

Like most other VC firms, Groove Capital focuses on investing in profitable startups. The network has a strong interest in the Midwest region and arranges 2-3 pitching competitions every year.  The investors from Groove Capital also seek companies with strong founding teams and those who are dealing in large markets.

The average check size of Groove Capital ranges between $25,000 to $250,000.

Brown Venture Group

• Contact: info@brownventuregroup.com
• Website: Brown Venture Group
• Focused Sectors: Computer, Network Security, Software, Delivery Service, Logistics, Retail Technology, Cyber Security, SaaS, Security, Advertising, Marketing, Messaging, E-Commerce, Information Technology, Health Care, Home
• Present in: Minnesota
• Notable Investments: TurnSignl and Aventior
• Total Investments: 5

Investing in startups since 2018, Brown Venture Group is also an active VC firm. The network was founded by Dr. Paul Campbell and Chris Brooks in Minneapolis. 

Likewise, Brown Venture Group typically invests in early-stage ventures, particularly those led by BIPOC (Black, Indigenous, and People of Color) entrepreneurs. The firm looks for companies that are led by experienced founders and can easily go international.

The investment range of Brown Venture Group is around $5M, depending upon the startup's targeted market and estimated ROI.

Rice Park Capital

• Contact: Contact Us - Rice Park Capital Management
• Website: Home - Rice Park Capital Management
• Focused Sectors: Real Estate, Analytics, Big Data, Information Services, Retail Technology, SaaS, Software, Logistics, Marketplace, Transportation, Advertising, Consulting, Enterprise Software, Information Technology, Marketing, Freight Service, Artificial Intelligence, Financial Services, Insurance, InsurTech, Drones, Robotics, Automotive, Autonomous Vehicles
• Funding Stages: Early/Seed/Growth
• Present in: Minnesota

Founded in 2019 by Nick Smith, Rice Park Capital is a VC firm that specializes in alternative investments, focusing primarily on real estate and credit markets. 

During the screening events, Rice Park Capital tends to favor investments in sectors like tech, real estate, and credit opportunities. The firm’s strategy centers around long-term value creation, looking for undervalued ideas where they can help the founders with mentorship and capital. 

Unlike other venture capital firms, Rice Park Capital is primarily involved in providing alternative financing and credit-related investments. The investment range varies in the startup sector but most of their investments are around $10M.

Bassett Creek Capital

• Website: Bassett Creek Capital – Where Culture, Grit, and Capital Converge
• Focused Sectors: Artificial Intelligence, Human Resources, Internet, Software, Staffing Agency, Aerospace, Drone Management, Drones, Geospatial, Government, Mapping Services, Automotive, Information Technology, Logistics, Manufacturing
• Funding Stages: Growth
• Present in: Minnesota

Known for its active involvement in the startup community, Bassett Creek Ventures is a private investment firm focused on providing capital to lower-middle-market companies. 

Bassett Creek specializes in acquiring businesses in the industrial, manufacturing, and service sectors, with an emphasis on companies that generate stable cash flows and demonstrate growth potential. The firm mostly targets growth-staged businesses rather than early-stage startups. 

Their team of investors also focuses on companies with strong management teams, predictable revenue streams, and opportunities for operational improvement. 

The average check size of Basset Creek Ventures is $5M. 

What is the Largest Source of Funding for Startups?

Startup leaders can secure funding from a lot of sources, but the most significant ones depend on the company's stage, growth goals, and industry.

Here are four primary sources where startups secure the largest amounts of funding.

Venture Capital (VC)

Venture capital firms are the most common and leading source of funding for startups, especially those in high-growth industries like tech and healthcare. 

Normally, VC funding comes in different stages, including Series A, B, and C rounds, with amounts increasing as the business matures​.

Angel Investors

Angel investors invest early in startups, often before venture capital firms get involved. They provide capital in exchange for equity and can also offer mentorship and industry connections. 

If you are starting with just an idea, it’s best to connect with an angel investor and avoid pitching to VC firms. 

Crowdfunding

Crowdfunding is also a common way for startups to get capital. Platforms like Kickstarter and Indiegogo allow startups to raise funds from a large pool of individual backers. 

However, these crowdfunding campaigns raise smaller amounts compared to VC funding but are crucial for startups needing early customer feedback. 

Corporate Partnerships

Large corporations often provide funding through strategic partnerships or venture arms. These partnerships often give startups access to valuable resources like distribution channels, technology, and industry expertise. 

Wrap-Up:

To sum it up, the best investors or “favorite VC funds” for you are those who share similar interests and have a deep understanding of your business idea. 

Invest time in building connections with angel investors and learn about their motivations for funding startups. This knowledge will help you present your business in a way that attracts investment.