In 2020, the tech sector contributed over $3 billion to North Dakota's GDP. This sums up approximately 6% of the state's total GDP of $52.02 billion.
And if you are thinking, is it only the unicorn or big software organizations contributing to this growth?
Nope!
It’s not just those big tech giants that contribute to this growth.
In fact, most of this growth is driven by the proactive role of angel investors and venture capitalists who fund startups like yours. Do you also have a startup that needs funding to grow and thrive?
Well, let’s start unveiling the top 8 VC firms in North Dakota that can invest in your business.
Unveiling The Top 8 VC Firms in North Dakota (Software Special)
| Investor Name | Focused Sectors | Funding Stages | Notable Investments | Total Investments |
|---|---|---|---|---|
| Dakota Venture Group (DVG) | Early-stage startups across Technology, Healthcare, and Agriculture. | Seed and Early Stages. | Pure Blue Tech Inc., Corvida Medical, Youbetme, StemoniX, and Buzz360, LLC | Over 50 investments. |
| North Dakota Growth Fund | Technology, Agriculture, and Renewable Energy. | Early Stage to Growth Stage Investments. | Regional startups in agriculture and tech sectors. | Undisclosed |
| Wonder Fund North Dakota (O'Leary Ventures) | Consumer Products, Tech-Enabled Startups, and Energy. | Seed and Early Stages. | North Dakota-based businesses (part of Shark Tank-style initiatives). | Around 20 companies. |
| Black Kanyon | Technology, Consumer Products, and Energy. | Growth Equity. | Confidential private equity deals. | Undisclosed |
| Susa Ventures | Technology, SaaS, Fintech, and Consumer Products. | Seed and Early Stage. | Robinhood, Flexport, Fast, and Stord. | Over 100 companies. |
| LongWater Opportunities | Manufacturing, Industrial, and Consumer Goods. | Growth Equity and Strategic Buyouts. | Revolution Manufacturing, Apollo Design Technology. | Over 15 companies. |
| 701 Fund | Consumer Goods, dispatching, healthcare, industrial, and software | Growth Equity and Strategic Buyouts. | Solytech Wireless, Sasya, and Airtonomy | 24 companies. |
Dakota Venture Group
- Website: dakotaventuregroup.com
- Focused Sectors: Early-stage startups across Technology, Healthcare, and Agriculture.
- Funding Stages: Seed and Early Stages.
- Notable Investments: Pure Blue Tech Inc., Corvida Medical, Youbetme, StemoniX, and Buzz360, LLC
- Total Investments: Over 50 investments.
Dakota Venture Group (DVG) was established in 2006 through a donation from the Dakota Foundation. It is a student-run venture capital fund based in Grand Forks, North Dakota.
DKG is affiliated with the University of North Dakota's Center for Innovation Foundation. When funding startups, they look for early-stage investments, primarily targeting high-growth companies in the Midwest, with a preference for ventures located in North Dakota, South Dakota, and Minnesota.
Their investors mostly use a triple-bottom-line approach: making 4-5x returns on investment, ensuring sustainable growth in the Midwest, and providing experiential learning opportunities for students.
The average investment size ranges from $15,000 to $100,000.
North Dakota Growth Fund
- Website: ndgrowthfund.com
- Focused Sectors: Technology, Agriculture, and Renewable Energy.
- Funding Stages: Early Stage to Growth Stage Investments.
- Notable Investments: Regional startups in agriculture and tech sectors.
- Total Investments: Undisclosed.
The North Dakota Growth Fund is a $100 million multi-stage investment fund established to support North Dakota businesses and entrepreneurs. Managed by 50 South Capital Advisors, NDGF aims to advance innovation and private market investments within the state.
As of recent reports, NDGF has committed $89 million to five funds and four direct co-investments, resulting in over $145 million invested into 20 North Dakota companies.
Moreover, NDGF usually invests in startups that have bigger goals than ROI and want to contribute towards economic growth, agriculture technology, unmanned aerial systems (UAS) technology, and energy.
Wonder Fund North Dakota (O'Leary Ventures)
- Website: olearyventures.com
- Focused Sectors: Consumer Products, Tech-Enabled Startups, and Energy.
- Funding Stages: Seed and Early Stages.
- Notable Investments: North Dakota-based businesses (part of Shark Tank-style initiatives).
- Total Investments: Around 20 companies.
Wonder Fund North Dakota is a $45 million investment initiative managed by O'Leary Ventures, founded by renowned investor Kevin O'Leary.
Established in partnership with the North Dakota Development Fund, the VC firm focuses on funding high-growth startups at the expansion stage.
Moreover, The Wonder Fund targets early-stage companies that are either based in North Dakota or demonstrate a commitment to providing significant programs. They usually invest in startups that have the potential for profitability and scalability, as well as environmental, social, and governance (ESG) considerations.
Although WFND doesn't have a fixed investment range, the investor focuses on funding rounds under $20 million for companies with fewer than 500 employees.
Black Kanyon
- Website: blackkanyon.com
- Focused Sectors: Technology, Consumer Products, and Energy.
- Funding Stages: Growth Equity.
- Notable Investments: Confidential private equity deals.
- Total Investments: Undisclosed
Funding startups since 2020, Black Kanyon is a private equity firm headquartered in Lake Norden.
The firm's core focus is to provide life-changing opportunities for its people, guided by core values such as grit, teamwork, humble confidence, and fun.
Plus, the investors also gravitate towards multifamily and commercial properties valued at or above $5 million, seeking assets with potential for value addition. For operating businesses, the firm prefers companies in the Midwest with good values and an EBITDA of $5 million or more.
Black Kanyon usually invests in startups with average check sizes of around $3M.
Susa Ventures
- Website: susaventures.com
- Focused Sectors: Technology, SaaS, Fintech, and Consumer Products.
- Funding Stages: Seed and Early Stage.
- Notable Investments: Robinhood, Flexport, Fast, and Stord.
- Total Investments: Over 100 companies.
Susa Ventures is a seed-stage venture capital firm with offices in San Francisco and Los Angeles. The firm was established by Eva Ho and Leo Polovets and makes early-stage investments in technology startups.
Since its inception, Susa Ventures has built a diverse portfolio, investing in over 156 companies. They have achieved 24 successful exits and has 11 unicorns in its portfolio.
Susa Ventures primarily invests in enterprise software, finance, and logistics sectors, with a preference for companies demonstrating strong growth potential and innovative solutions. The firm typically invests between $500,000 to $5 million in seed and Series A rounds, partnering with ambitious founders.
LongWater Opportunities
- Website: longwateropportunities.com
- Focused Sectors: Manufacturing, Industrial, and Consumer Goods.
- Funding Stages: Growth Equity and Strategic Buyouts.
- Notable Investments: Revolution Manufacturing, Apollo Design Technology.
- Total Investments: Over 15 companies.
LongWater Opportunities is a private equity firm targeting control equity investments in family-owned American manufacturing companies within the lower middle market.
The firm was co-founded by Brooks Burgum and Jordan Bastable, who bring extensive experience in leading and growing manufacturing businesses.
Investing in businesses, LongWater's investment strategy centers on partnering with management teams to develop unique value creation plans, known as 'Strategic Playbooks,' prior to acquisition. Post-acquisition, they collaborate closely with management to execute these plans, focusing on growth avenues and long-term success.
701 Fund
- Website: 701 Fund
- Focused Sectors: Consumer Goods, dispatching, healthcare, industrial, and software
- Funding Stages: Growth Equity and Strategic Buyouts.
- Notable Investments: Solytech Wireless, Sasya, and Airtonomy
- Total Investments: 24 companies.
The 701 Fund is a venture capital firm based in North Dakota that invests in early-stage, high-growth technology companies.
Operating since 2015, the fund has invested in over 50 startups. The team of investors prefers companies that are introducing innovative tech and have experienced management teams. Businesses must also have a proven growth model and should be able to generate 3-6x ROI within 24 months of investment.
The 701 Fund invests between $250,000 and $1 million per company and has a strong focus on supporting entrepreneurs in the Midwest region.
Other than funding programs, they also participate in the startup ecosystem through various events such as the 701 Challenge and organize annual summits, including the 701 Summit, to connect entrepreneurs with investors.
Wrap-Up: Our 2 Cents!
Wrapping it up, you now have an overview of some of the leading venture capital firms actively investing in the North Dakota startup ecosystem.
However, a founder should always remember that securing funding isn't just about preparing a nice pitch deck.
When talking with the investors, talk about early traction, such as customer acquisition, revenue growth, and positive user feedback.
Investors love companies that solve modern challenges and create meaningful impact. Talk about how your software solution solves a pressing problem and creates value for your target market.
