Iowa has become a real startup hub over the past several years, with a small but active bench of angel investors and venture capital firms backing local founders. From entrepreneurs to investors, more and more people have set their eyes on the state's startup market and are working to grow it.
Do you have an idea that could take off with the right funding?
The following list highlights the top angel investors and VC firms in Iowa, along with their investment interests. AngelMatch's database currently lists 90+ investors connected to Iowa.
Top 5 Angel Investors and VC Firms in Iowa
Before we jump onto the list, it is important to understand their portfolio companies, investment range, and interests. Three of the five are venture capital firms rather than individual angels, so we have labeled the list accordingly.
Let's move onto the list.
Eric Engelmann
- LinkedIn: Eric Engelmann
- Investor Type: Individual Investor
- Investment Interests: Fintech, Saas, Digital Business, Consumer Products, Biotech.
- Investment Stage: Early and Seed
Eric Engelmann is one of the most experienced and active investors in Iowa. He has invested in more than 40 companies through accelerator funds and on an individual basis, and he currently serves as General Partner at ISA Ventures, a Cedar Rapids-based multi-stage venture capital studio.
When investing, Eric Engelmann looks for early-stage startups with a strong market plan, as well as growing companies at the seed stage.
Aside from his funding activities, he founded the Corridor Angel Investors program through NewBoCo to connect Eastern Iowa startups with accredited investors. Engelmann also conducts networking events and startup workshops to guide founders through the fundraising process.
The investment range of Eric Engelmann ranges from $25,000 to $1M. Some of his investments include:
Payrailz: Payrailz is a digital payments company offering advanced bill payment and money transfer solutions to banks and credit unions. The company raised over $24M in funding before being acquired by Jack Henry & Associates in 2022.
HowFactory: HowFactory developed a SaaS platform for small to medium-sized industrial companies to easily create, track, update, and manage processes.
Gross-Wen Technologies: Gross-Wen Technologies is a biotechnology company that specializes in algae-based wastewater treatment. The company closed a $6.5M Series A round in 2021, co-led by ISA Ventures and Iowa Farm Bureau's Rural Vitality Fund, with Next Level Ventures also participating.
Next Level Ventures
- Website: Next Level Ventures
- Investor Type: Venture Capital Firm
- Investment Interests: Fintech Agtech, Digital Businesses, Communications, and Software.
- Investment Stage: Early and Seed
Next Level Ventures is a Des Moines-based venture capital firm that invests in tech-related businesses. The firm was co-founded by Scott Hoekman in 2014 and has provided funding to more than 50 startups.
During the investment stage, the firm evaluates the strength of the management team, market size, uniqueness of the idea, and the company's growth potential. Once a startup has been funded, the firm provides mentorship and backs its portfolio companies through different startup stages.
Next Level Ventures now manages over $400 million in assets across a portfolio of more than 45 companies. The investment range of Next Level Ventures ranges from $500,000 to $10M. Some of their notable portfolio companies include:
Payrailz: Payrailz is a digital payments company that offers advanced bill payment and money transfer solutions to banks. The company's platform utilizes AI technology, security, cloud-based software, and a chatbot to expand the range of payment types. Payrailz raised over $24M in funding.
Workgroups DaVinci: Workgroups DaVinci, also known as MetaCommunications, is a provider of productivity and workflow management solutions. It offers project management, digital asset cataloging, and content review. The company has raised a total of $18M in funding.
FarmlandFinder: FarmlandFinder is a provider of an online marketplace intended to make the world's farmland information accessible. The company's marketplace connects farmers with the right farmland and offers information on upcoming land sales. FarmlandFinder has raised a total of $3M in funding.
Prairie Crest Capital
- Website: Prairie Crest Capital
- Investor Type: Venture Capital Firm
- Investment Interests: Agtech, Consumer Products and Software.
- Investment Stage: Seed and Early
Founded in 2016, Prairie Crest Capital is a venture capital firm that invests in tech-related startups. Founders Mark White and Barry Adams have invested in several ventures and continue to expand their portfolio.
Prairie Crest Capital carefully invests in startups and only funds ventures that have significant growth potential. The firm focuses on early to mid-stage investments in technology companies located primarily in the Midwest, with a principal focus on the AgTech sector.
Aside from their investment activities, they assist entrepreneurs by participating in sales calls, providing introductions to strategic partners, and actively recruiting new management team members and independent board members as needed.
The investment range of Prairie Crest Capital ranges from $1M-$5M, depending on the startup. Notable portfolio companies are:
Tradelanes: Tradelanes is a global trade market network platform that connects trade participants into a single document chain over the lifecycle of an international trade shipment. The platform digitizes the global supply chain and has raised a total of $11M in funding.
Certintell: Certintell is a care management company that enables safety-net providers to make a lasting impact on the health of underserved patients through telehealth. Certintell has raised a total of $800K in funding.
Hi Fidelity Genetics (HFG): HFG is a computational breeding company that uses sensors, data science, and statistical genetics to help farmers manage yield risks. The company has raised a total of $11.5M in funding.
ManchesterStory Group
- Website: ManchesterStory
- Investor Type: Venture Capital Firm
- Investment Interests: Healthtech and Insure Tech.
- Investment Stage: Seed
Founded in 2017 by Dave Miles and Matt Kinley, ManchesterStory Group is a venture capital firm that has funded dozens of startups across the InsurTech, FinTech, and HealthTech sectors.
Aside from their investment activities, ManchesterStory Group organizes networking events and mentorship programs to guide founders through different aspects of building a startup, backed by an extensive network of mentors.
ManchesterStory Group is backed by insurance carriers, brokers, and wholesalers, and can fund startups up to $4M. Some of their previously funded companies are:
OpenLoop: OpenLoop is a health tech platform. It aims to deliver full-stack, white-labeled clinical support to companies scaling virtual care services. OpenLoop has raised a total of $26M in funding.
Goose Insurance Services: Goose Insurance Services is a consumer-focused insure-tech company. It offers several products and operates as a direct-to-consumer managing general agency & underwriter. Goose Insurance Services has raised a total of $8M in funding.
Joyn Insurance: Joyn Insurance is an insurance technology company. It provides a faster, more accurate, and more transparent experience that saves time, costs, and frustration. Joyn Insurance has raised a total of $17.7M in funding.
XP Health: XP Health is a health tech startup. It has developed an AI-powered vision benefits platform for employees. XP Health has raised a total of $22.1M in funding.
Norman Sorensen
- LinkedIn: Norman Sorensen
- Investor Type: Individual Investor
- Investment Interests: Crypto Market, Sciences, and Healthtech.
- Investment Stage: Early and Seed
Norman Sorensen is an angel investor with a long career in financial services. He served as Executive Vice President of both Principal Financial Group and Principal Life Insurance Company starting in 2007, following senior roles at AIG and Citigroup.
Thanks to his diverse experience in the investment community, Sorensen brings a strong network to the startups he backs and often shows interest in companies with digital and tech-related solutions.
The investment range of Norman Sorensen can range up to several million dollars, depending on the startup sector and its growth potential. Notable portfolio companies are:
Solidus Labs: Solidus Labs is a crypto market integrity platform that safeguards crypto exchanges, financial institutions, and regulators globally against crypto market manipulation. Solidus Labs raised a total of $45M in a Series B funding round.
Chromatan: Chromatan is a biotechnology company that develops a biologics purification technology designed for single-use and continuous bio-manufacturing. The company offers continuous countercurrent tangential chromatography that enables continuous, single-use, and column-free purification. Chromatan has raised a total of $3.84M in funding.
Thrive Bioscience: Thrive Bioscience is a science-based analytical and automation technology company that offers data, imaging, analytics, and automation for live cell biology. Thrive Bioscience has raised a total of $12.5M in funding.
Wrap-Up
In a nutshell, angel investors and VC firms are always looking for startups that show growth potential and can display profitability. It's up to founders to work hard, present a great pitch deck, and secure funding from the right investors. If none of these five are the right fit, AngelMatch's investor matcher can help you find more investors and VC firms connected to Iowa.
Good Luck!
Frequently Asked Questions
How to get a warm introduction to angel investors?
To get a warm introduction to angel investors, make relationships within your professional network.
Search for mutual connections or mentors who can vouch for your credibility and introduce you. Attend industry events, workshops, or startup networking gatherings to expand your network.
How do angel investors differ from venture capitalists?
Angel investors and venture capitalists invest in startups but differ in their funding sources and investment stages. Angel investors use their own funds, while venture capitalists manage pooled funds from institutional investors. Angel investors are more likely to invest in the early stages of a startup when it is still developing its concept and product, while venture capitalists typically invest in later stages when the startup has already demonstrated market traction and growth potential.
What industries do Iowa's angel investors and VC firms fund most?
Iowa's most active investors cluster around AgTech, FinTech, InsurTech, and health tech, reflecting the state's agriculture and insurance industries. Firms like Prairie Crest Capital focus on AgTech, ManchesterStory Group focuses on InsurTech and HealthTech, and Next Level Ventures and individual angels like Eric Engelmann back a broader mix of Fintech and software startups.
