Top 5 Minnesota Fintech VC Firms

The top VC firms funding fintech startups in Minnesota are Matchstick Ventures, Brightstone Venture Capital, Arthur Ventures, Rally Ventures, and Great North Ventures. These early-stage firms back payments, insurtech, and financial-software companies across the Twin Cities and greater Minnesota, typically investing at the seed and Series A stages.

The Government of Minnesota has taken dozens of initiatives to promote the fintech ecosystem. The 2023 Minnesota Legislature reauthorized the Launch Minnesota Grant program and funded it at $3 million, split as $1.5 million for each of fiscal years 2024 and 2025. Through the program's Innovation Grants, eligible early-stage businesses can be reimbursed for up to $35,000 in Minnesota business expenses.

However, it's not just the government that is boosting the fintech sector.

Dozens of VC firms are investing in Minnesota's fintech sector, and AngelMatch's database lists 400+ investors based in Minnesota. To make your research easier, we have prepared the following list of the top investors in Minnesota investing in the fintech sector.

Which 5 VC Firms in Minnesota Fund Fintech Startups?

Here are the five Minnesota-based venture firms most active in fintech, with their focus sectors, funding stages, and notable investments.

Matchstick Ventures

• Contact: matchstick.vc/connect

• Website: Matchstick Ventures

• Focused Sectors: Fintech, Network Security, Software, Delivery Service, Cyber Security, SaaS, Security, Advertising, Marketing, Messaging, E-Commerce, Information Technology, Enterprise Software, Food and Beverage, Supply Chain Management, Charity, Employment, GovTech, Analytics, Business Intelligence

• Funding Stages: Pre-seed and Seed

• Present in: Minneapolis, MN and Boulder, CO

• Notable Investments: Branch, StackHawk, Spekit, and Ordermark

• Total Investments: 100+

Founded in 2015 by Ryan Broshar and Natty Zola, Matchstick Ventures has established itself as a stalwart in Minnesota's venture capital scene.

The firm typically invests in pre-seed and seed-stage startups that are early in their development but have already shown promising traction.

Brightstone Venture Capital

• Contact: [email protected]

• Website: Brightstone Venture Capital

• Focused Sectors: Financial Services, Data Storage and Management, AI/Machine Learning, Enterprise Security, Cloud Infrastructure, Marketplaces, Regenerative Medicine, Next Gen Diagnostics, Genomics/Gene Editing, Medical Device, Drug Discovery Tools and Platforms, Personalized Medicine

• Funding Stages: Early Growth

• Present in: Minneapolis, MN

• Notable Investments: Gravie, VRChat, Celcuity, HomeSpotter, FlipGrid, Bite Squad

• Total Investments: 60+

Brightstone Venture Capital is a Minneapolis-based venture capital firm that was founded in 1985. The firm is led by managing general partner David Dalvey, with a focus on investing in early-growth technology and life sciences companies.

During due diligence, the investors from Brightstone look for companies that have strong leadership, unique services, and significant market potential. They prefer startups that have scalable solutions and have demonstrated traction, typically through early revenue generation or customer validation.

Brightstone invests at the early-growth stage from a $100 million venture fund.

Arthur Ventures

• Contact: [email protected]

• Website: Arthur Ventures

• Focused Sectors: B2B Software, Fintech, Finance, Cybersecurity, Legal Tech, HR Tech, Healthcare IT, GovTech, InsurTech, Analytics, SaaS, Developer Tools, Information Services

• Funding Stages: Early Growth and Series A

• Present in: Minneapolis, MN (HQ) and Fargo, ND

• Notable Investments: Terminus, Leadpages, MacStadium, and CertifID

• Total Investments: 50+

Arthur Ventures is a venture capital firm founded in 2008 by Doug Burgum and James Burgum. The firm is now headquartered in Minneapolis, with its original office still active in Fargo, North Dakota.

Arthur Ventures focuses on B2B software companies outside Silicon Valley, with fintech named as one of its core sectors alongside cybersecurity, healthcare IT, and HR tech. The firm targets non-coastal markets in the U.S. and Canada, helping companies scale in underserved regions.

Arthur Ventures has invested in over 50 startups. The firm typically writes initial checks between $500,000 and $3 million, with larger investments available through its growth vehicle.

Rally Ventures

• Contact: www.rallyventures.com/team

• Website: Rally Ventures

• Focused Sectors: Fintech, AI/Machine Learning, Cybersecurity, SaaS+, Payments, InsurTech, Enterprise Software

• Funding Stages: Seed and Series A

• Present in: Minneapolis, MN and Menlo Park, CA

• Notable Investments: Total Expert, JustiFi, PayGround

• Total Investments: 75+

Rally Ventures is an early-stage venture capital firm that operates from Menlo Park, California, and Minneapolis, Minnesota. It was founded in 2012 by Jeff Hinck, and Justin Kaufenberg joined the firm as a partner in 2019.

Rally invests exclusively in early-stage business technology, with fintech named as one of its four core focus areas alongside AI/ML, cybersecurity, and SaaS+. The firm closed its $240 million Fund V in December 2023 and typically leads seed and Series A rounds.

Great North Ventures

• Contact: Contact form

• Website: Great North Ventures

• Focused Sectors: Fintech infrastructure, AI, Community-driven applications, Labor and workforce tech, Enterprise Software

• Funding Stages: Seed and Series A

• Present in: Minneapolis area, MN and Silicon Valley

• Notable Investments: Branch, Dispatch, Yardstik, FactoryFix

• Total Investments: 50+

Great North Ventures is a Minneapolis-area venture capital firm founded in 2017 by twin brothers Rob and Ryan Weber.

The firm invests in seed and Series A rounds. Its Fund II themes center on AI-driven digital transformation, community-driven applications, and solving labor problems, and it has backed fintech companies like Branch, a Minneapolis firm that embeds banking and payments into workforce apps. Great North closed its $40 million Fund II in May 2022.

How Do VC Firms Make Money?

Aside from hedge funds or public funding, it sounds like a mystery where VC firms generate so much capital to invest.

Well, VCs rely on long-term gains from high-growth companies, and their profitability depends on both collecting management fees and striking a few highly successful deals.

In short, Venture capitalists have two main mechanisms.

Management Fees

Usually, VCs charge a 2% annual fee on the total capital raised for the fund. Although this isn't their main source of capital, this fee helps cover the operational costs of the venture firm, including salaries and office expenses.

Carried Interest:

The majority of a VC's earnings come from "carried interest," which is usually around 20% of the profits from successful investments. If a startup is acquired or goes public, the VC realizes returns from the sale of its equity stake. These profits are then distributed to the firm's investors (Limited Partners, or LPs), with the VC taking a portion as carried interest.

However, the 20% isn't a "set" or "identical" share for every VC firm. Different ventures have their own rules for setting the equity and these shares are discussed during the investor meetings. 

Frequently Asked Questions

Which VC firms invest in fintech startups in Minnesota?

Minnesota's most active fintech VC firms include Matchstick Ventures, Brightstone Venture Capital, Arthur Ventures, Rally Ventures, and Great North Ventures. They fund startups working on payments, insurtech, lending, and financial software, mostly at the seed and Series A stages across the Twin Cities and greater Minnesota.

How much do Minnesota fintech VC firms typically invest?

Check sizes vary by firm and stage. Arthur Ventures, for example, typically writes initial checks of $500,000 to $3 million into rounds of $1 million to $5 million. Seed-focused firms like Matchstick and Great North generally invest smaller early-stage amounts, with follow-on capital reserved for later rounds.

Do Minnesota fintech VCs fund seed-stage startups?

Yes. Most Minnesota fintech investors focus on early stages. Matchstick Ventures backs pre-seed and seed companies, while Rally Ventures and Great North Ventures lead seed and Series A rounds. Arthur Ventures concentrates on early-growth and Series A deals, so founders can find a fit at nearly every early stage.

What fintech sectors do Minnesota VCs focus on?

Minnesota fintech VCs back payments, embedded finance, insurtech, lending, and B2B financial software. Rally Ventures emphasizes its SaaS+ model, where vertical software embeds financial products. Arthur Ventures and Great North fund fintech infrastructure and workforce-payments companies like Branch, a Minneapolis financial-technology firm for hourly workers.

How can I get in front of Minnesota fintech investors?

Research each firm's portfolio and thesis, then send a tailored pitch deck through a warm introduction where possible. AngelMatch's database lets you filter Minnesota investors by sector and stage, and its VC search tool helps you shortlist firms that actually fund fintech at your stage.

Wrap-Up:

A reliable shortcut for securing investment is pitching the right people with a well-customized pitch deck.

Before you reach out, do your homework: know each firm's portfolio companies, preferences, and target sectors so you can tailor your deck. You can filter Minnesota firms by sector and stage with our Investor Database tool, and if you're building outside fintech, our roundup of Minnesota IT startup investors covers more of the state's active firms.

Good luck with your startup journey!