Top 8 Startup Investors and VC Firms in Tennessee in 2026

Tennessee's top startup investors include growth-equity and venture capital firms like SSM Partners, Martin Ventures, Council Capital, and Innova Memphis, plus Nashville angel investor Brian Shore. Together they back software, healthcare technology, manufacturing, and AgTech companies across Nashville and Memphis. The list below also includes private equity firms that fund established, later-stage businesses rather than early startups.

Tennessee's tech scene is booming. The Middle Tennessee tech industry alone is now valued at more than $8 billion, and Nashville has become one of the country's fastest-growing tech hubs. AngelMatch currently lists 500+ investors based in Tennessee.

But it's not all roses and sunshine. Plenty of Tennessee startups still struggle to find the funding they need to grow.

That's where investors come in. Across the state, VC firms, private equity firms, and individual angels are helping turn big ideas into real businesses. Do you also plan to reach out to these startup investors and secure a funding check?

Let's explore the top investors fueling Tennessee's next wave of innovation. If you're raising specifically for a software company, see our guide to angel investors who fund software startups in Tennessee, and our broader list of top angel investors in Tennessee.

Top 8 Startup Investors and VC Firms in Tennessee

Here's a table to summarize the list quickly.

SSM Partners

• Website: SSM Partners
• Focused Sectors: Healthcare, Software, and Technology-Enabled Services
• Funding Stages: Growth Equity Investments.
• Notable Investments: Apixio, Datacert, Passport Health Communications
• Total Investments: Over 50 companies.

Founded in 1973, SSM Partners is a Memphis-based growth equity firm specializing in growth-stage investments across B2B software, healthcare IT, and tech-enabled services sectors.

Over the years, SSM Partners has made a total of 94 investments, with 45 successful exits.

SSM Partners focuses on sectors where they have deep networks and high levels of investment experience, such as software and tech-enabled services. They do not invest in life sciences, medical devices, or diagnostic companies.

The investment range of SSM Partners is between $8 million and $30 million, and they are open to both majority and minority ownership positions.

Gen Cap America

• Website: Gen Cap America
• Focused Sectors: Diverse industries, including manufacturing, distribution, and business services.
• Funding Stages: Acquisitions and Recapitalizations.
• Notable Investments: Techlight and Lab Products
• Total Investments: 60+

Founded in 1988, Gen Cap America (GCA) is a private investment firm headquartered in Nashville, Tennessee. The firm specializes in acquisitions and recapitalizations of quality middle-market and lower-middle-market businesses, focusing on sectors such as manufacturing, distribution, and basic services.

GCA targets private businesses or divisions of larger corporations with revenues between $5 million and $100 million. It looks for companies with a history of strong cash flow and does not target turnaround or startup situations.

The investment range of GCA can run to several million dollars per deal.

Martin Ventures

• Website: martinventures.com
• Focused Sectors: Healthcare and Technology.
• Funding Stages: Venture Capital and Growth Equity.
• Notable Investments: Livara and Change Healthcare
• Total Investments: 50+

Founded in 2009 by Charles N. Martin Jr., Martin Ventures is a Nashville-based venture capital firm and family office dedicated to transforming the healthcare industry through strategic investments.

The firm has backed more than 50 companies and invests its own capital rather than a traditional fund.

Martin Ventures focuses on healthcare technology-enabled and Software-as-a-Service (SaaS) businesses that show year-over-year growth and have annual revenues exceeding $2 million. They seek companies with valuations rooted in revenue or market multiples, emphasizing sustainable business models and scalable solutions.

The average check size of Martin Ventures is between $2 million and $4 million.

LFM Capital

• Website: LFM Capital
• Focused Sectors: Manufacturing and Industrial Services.
• Funding Stages: Private Equity Investments.
• Notable Investments: Fecon, Vektek.
• Total Investments: 20+ platform investments, plus add-on investments

Founded in 2014 by Steve Cook and Dan Shockley, LFM Capital is a Nashville-based private equity firm. The firm prefers investments in lower middle-market manufacturing and industrial services companies across the United States and Canada.

LFM Capital targets companies with revenues between $10 million and $100 million.

They seek to lead or control investments in businesses with defensible niches supported by engineering expertise, cost position, or proprietary technology. LFM raised an initial fund of roughly $110 million to back these manufacturing investments.

Pharos Capital Group

• Website: pharosfunds.com
• Focused Sectors: Healthcare and Business Services.
• Funding Stages: Growth Equity and Buyouts.
• Notable Investments: Charter Health Care Group and Rental Care 360
• Total Investments: 58

Founded in 1998, Pharos Capital Group is a physician-founded private equity firm with offices in Dallas, Texas, and Nashville.

The firm focuses on investing in growing healthcare companies that aim to improve patient outcomes, increase access to care, and lower healthcare costs, particularly in underserved communities.

Pharos Capital Group targets healthcare companies that can enhance patient outcomes, broaden access to care, and reduce overall healthcare expenses. The firm is particularly interested in businesses serving underserved areas, including rural and urban communities.

Pharos typically invests $25 million to $50 million per company in later-stage growth, acquisitions, and buyouts.

Council Capital

• Website: councilcapital.com
• Focused Sectors: Healthcare and Healthcare IT
• Funding Stages: Growth and Early-Growth Stage Investments.
• Notable Investments: Senior Whole Health, Ingenious Med.
• Total Investments: Growth-stage healthcare portfolio

Founded in 2000 by Dennis C. Bottorff, Council Capital is a Nashville-based private equity and venture capital firm specializing in healthcare services and healthcare technology investments.

Unlike most other VC firms in Tennessee, Council Capital uses a CEO Council business model to support and grow healthcare companies.

The firm targets healthcare businesses with the potential to grow rapidly and efficiently through both organic growth and strategic acquisitions, and it manages around $150 million in assets.

Innova Memphis

• Website: innovamemphis.com
• Focused Sectors: Healthcare, Technology, and AgTech
• Funding Stages: Seed and Early-Stage Investments.
• Notable Investments: HerdDogg, Soiltech Wireless, Rantizo.
• Total Investments: Over 100 companies.

Innova Memphis, founded in 2007 by Ken Woody, is a venture capital firm based in Memphis, Tennessee. Since 2007, Innova has invested in more than 100 companies and remains one of the state's most active early-stage investors.

Innova Memphis focuses on early-stage companies with competitive advantages in the biosciences, technology, and AgTech fields.

The firm seeks opportunities with the potential to grow into significant economic contributors, aiming to nurture the growth of high technology and entrepreneurial efforts. It typically writes seed-stage checks.

Brian Shore

• Focused Sectors: Enterprise software (SaaS), fintech, and health technology startups
• Present In: Nashville (Franklin), Tennessee
• Notable Investments: Ytica (contact-center analytics), Evermind (IoT elder-care monitoring), Contigo Financial (consumer lending fintech)

Brian Shore is a seasoned entrepreneur and angel investor based in the Nashville area. He has a background in technology and business leadership, and serves as the Chief Executive Officer (CEO) of Eleveo, a workforce optimization company for contact centers.

Brian has also served on the board of the Boys & Girls Club and on the Board of Directors of the Greater Nashville Technology Council (2006 to 2010).

When making investments, Brian Shore focuses on early-stage startups in the pre-seed and seed stages. He looks for businesses solving modern fintech, healthcare, or data security problems in both B2B and B2C spaces.

His angel checks have ranged from about $15,000 to $500,000, depending on the round.

Wrap-Up

Tennessee is full of VC firms, private equity firms, and individual investors ready to help your startup scale. The real challenge is convincing them to invest.

Start with a clear, well-structured pitch. Investors value clarity, scalability, and strong leadership, so lead with those. Keep your outreach concise: introduce your startup, explain the problem you solve, and show your traction. Our investor outreach email generator can help you draft that first message.

Good Luck!

Frequently Asked Questions

Which industries do Tennessee's top startup investors focus on?

Tennessee investors concentrate on healthcare and healthcare IT, enterprise software and SaaS, fintech, and AgTech, with several private equity firms also backing manufacturing and industrial businesses. Nashville's investors lean heavily toward healthcare technology, while Memphis firms like Innova Memphis add a strong AgTech and biosciences focus.

How much do Tennessee startup investors typically invest?

Check sizes vary widely by investor type. Nashville angel Brian Shore has written early-stage checks from roughly $15,000 to $500,000, while growth-equity and private equity firms invest far more. SSM Partners funds $8 million to $30 million per deal, and Pharos Capital Group invests $25 million to $50 million.

Where are most Tennessee startup investors based?

Most are concentrated in Nashville, the state's largest startup and healthcare-technology hub, with a second cluster in Memphis, home to SSM Partners and early-stage firm Innova Memphis. AngelMatch currently lists more than 500 investors across Tennessee and over 300 investors in Nashville alone.

How do I get in front of Tennessee investors?

Warm introductions work best, followed by local pitch events, accelerators, and angel networks in Nashville and Memphis. Before reaching out, research each investor's focus and stage, then send a concise, personalized message with a clear problem, traction, and ask. A tight pitch deck makes the difference.