Tennessee’s tech scene is booming! The state’s IT sector is now worth over $12 billion, and cities like Nashville have seen 20% tech job growth since 2015, creating over 15,000 new jobs.
But it’s not all roses and sunshine.
While IT startups are popping up everywhere, many struggle to find the funding they need to grow.
That’s where investors come in. In Tennessee, many VC firms and individual investors 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 list of top startup investors in Tennessee who are fueling the next wave of IT innovation!
Top 9 Startup Investors in Tennessee Who Fund IT Startups
Here’s a table to summarize the list quickly.
| Investor Name | Focused Sectors | Funding Stages | Notable Investments | Total Investments |
|---|---|---|---|---|
| SSM Partners | Healthcare, Software, Technology-Enabled Services | Growth Equity Investments | Apixio, Datacert, Passport Health Communications | Over 50 companies (94 total, 45 exits) |
| Gen Cap America | Manufacturing, Distribution, Business Services | Acquisitions, Recapitalizations | Techlight, Lab Products | 66 investments |
| Martin Ventures | Healthcare, Technology | Venture Capital, Growth Equity | Livara, Change Healthcare | 50+ investments |
| LFM Capital | Manufacturing, Industrial Services | Private Equity Investments | Fecon, Vektek | 21 platform investments, 32 add-ons |
| Pharos Capital Group | Healthcare, Business Services | Growth Equity, Buyouts | Charter Health Care Group, Rental Care 360 | 58 investments |
| Council Capital | IT, Healthcare | Growth and Early-Growth Stage Investments | Senior Whole Health, Ingenious Med | 80+ investments |
| Innova Memphis | Healthcare, Technology, AgTech | Seed and Early-Stage Investments | HerdDogg, Soiltech Wireless, Rantizo | Over 119 startups (112 total) |
| Sergio Maldonado | Marketing Technology, E-commerce, Big Data Analytics, Privacy Tech | Seed and Early-Stage Investments | SingularPrice | Typical range: $100,000 |
| Brian Shore | Enterprise Software (SaaS), Fintech, Health Technology | Pre-seed, Seed Investments | Ytica, Evermind, Contigo Financial | Typical range: $150,000 |
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 1990, SSM Partners is a Memphis-based private 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 ranges between $10 million to $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: : 66
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 $10 million and $200 million and earnings before interest and taxes (EBIT) of $2 million to $15 million. They seek companies with a history of strong cash flow and do not target turnaround or startup situations.
The investment range of GCA can range up to several million dollars.
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 2015 by Charles N. Martin Jr., Martin Ventures is a Nashville-based venture capital firm dedicated to transforming the healthcare industry through strategic investments.
The firm has funded over 50 companies, with more than 30 currently active in its portfolio, and has achieved 23 successful exits.
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 $3 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 $2M to $4M.
LFM Capital
- Website: LFM Capital
- Focused Sectors: Manufacturing and Industrial Services.
- Funding Stages: Private Equity Investments.
- Notable Investments: Fecon, Vektek.
- Total Investments: 21 platform investments, 32 add-on investments
Founded in 2014 by Stephen 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 $150 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) ranging from $3 million to $15 million.
They seek to lead or control investments in businesses with defensible niches supported by engineering expertise, cost position, or proprietary technology.
The investment range of LFM Capital is around $100M.
Pharos Capital Group
- Website: pharosfunds.com
- Focused Sectors: Healthcare and Business Services.
- Funding Stages: Growth Equity and Buyouts.
- Notable Investments: 58
- Total Investments: Charter Health Care Group and Rental Care 360
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 wants to invest in healthcare companies that have the potential to 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.
The average check size of Pharos Capital Group is around $7M.
Council Capital
- Website: councilcapital.com
- Focused Sectors: : IT and Healthcare
- Funding Stages: Growth and Early-Growth Stage Investments.
- Notable Investments: Senior Whole Health, Ingenious Med.
- Total Investments: 80+
Founded in 2000 by Dennis C. Bottorff, Council Capital is a Nashville-based private equity firm specializing in healthcare services and healthcare technology investments.
Unlike most other VC firms in Tennessee, CC uses a CEO Council business model to support and grow exceptional healthcare companies.
Moreover, the VC firm targets companies with revenues between $5 million and $50 million, generally up to $7 million in EBITDA (operating profit). They focus on businesses that have the potential to grow rapidly and efficiently through organic growth and strategic acquisitions.
The investment range of Council Capital is between $10 million to $50 million.
Innova Memphis
- Website: innovamemphis
- Focused Sectors: Healthcare, Technology, and AgTech
- Funding Stages: Seed and Early-Stage Investments.
- Notable Investments: HerdDogg, Soiltech Wireless, Rantizo.
- Total Investments: Over 119 startups.
Innova Memphis, founded in 2007 by Ken Woody, is a venture capital firm based in Memphis, Tennessee. Over the past 17 years, Innova Memphis has invested in 112 companies, averaging around five new investments annually in the last decade.
Innova Memphis focuses on early-stage companies with competitive advantages in the biosciences, technology, and AgTech fields.
The firm seeks opportunities that have the potential to grow into significant economic contributors, aiming to nurture the growth of high technology and entrepreneurial efforts
The average check size of Innova Memphis is around $1M.
Sergio Maldonado
- Focused Sectors: Marketing technology, e-commerce, big data analytics, and privacy-focused tech
- Present In: Nashville, Tennessee
- Notable Investments: : SingularPrice (AI-driven price monitoring platform)
Sergio Maldonado is a seasoned entrepreneur and angel investor. He is the co-founder and CEO of PrivacyCloud and has also led Sweetspot and Divisadero.
When investing in startups, Sergio looks for businesses that are at the early/seed stages and led by experienced entrepreneurs. He usually invests in startups through accelerators or investor meetings and expects 3-6x ROI.
The investment range of Sergio Maldonado is around $100,000.
Brian Shore
- Focused Sectors: Enterprise software (SaaS), fintech, and health technology startups
- Present In: Nashville, Tennessee
- Notable Investments: Ytica (contact-center analytics, acquired by Zoom International), Evermind (IoT elder care monitoring), Contigo Financial (consumer lending fintech)
Brian Shore is a seasoned entrepreneur and angel investor based in Nashville, Tennessee. He has a background in technology and business leadership, currently serving as the Chief Executive Officer (CEO) of Eleveo.
Before Elevo, Brian Served served on the Board of Directors for the Boys & Girls Club (2007 - 2011) and the Greater Nashville Technology Council (2006 - 2010).
When making investments, Brain Shore focuses on early-stage startups in the pre-seed and seed stages. He wants to invest in businesses that are solving modern Fintech, Healthcare, or data security problems in B2B and B2C spaces.
The average check size of Brian Seed is around $150,000.
Wrap-Up:
In short, Tennessee is filled with VC firms and individual investors to help your startup scale.
The only problem is how would you convince them to invest in your business?
Well, start with writing a well-structured pitch. Investors value clarity, scalability, and strong leadership, so your first approach should highlight these aspects.
Keep your outreach concise: introduce your startup, explain the problem you’re solving, and showcase your traction.
Good Luck!
