Top Startup Investors Who Invest in North Dakota (Healthcare Special)

The healthcare system of North Dakota has faced quite a lot of challenges in the past. In fact, the US Department of Health and Human Sciences quoted:

“North Dakota’s health status is confronted by a variety of challenges, including the unique geography and climate, socioeconomic factors, and demographics of the state”

For startup founders, though, challenges often translate into opportunities, and that's exactly where innovation thrives.

But innovation doesn't happen in isolation; it requires fuel in the form of capital, mentorship, and strategic connections.

So, here’s a brief guide that highlights some of the top-ranked venture capitalists and angel investors in North Dakota. Your perfect source to mentorship, network, and capital!

Top Startup Investors Who Invest in North Dakota (Healthcare Special)

Gener8tor North Dakota

• Website: gener8tor.com
• Focused Sectors: Tech, Healthcare, SaaS, and Consumer Products.
• Funding Stages: Accelerator Programs and Seed Stage Investments.
• Notable Investments: Undisclosed startups from accelerator programs.
• Total Investments: Over 200 companies across all locations.

Gener8tor, a nationally recognized startup accelerator, expanded its operations into North Dakota in 2022. Founded in 2012 by Troy Vosseller and Joe Kirgues, Gener8tor has a successful track record of investing across various regions and demographics throughout the Midwest.

In North Dakota, Gener8tor offers 3 major programs to support early-stage startups:

1. Gener8tor North Dakota Investment Accelerator: This 12-week program, based in Fargo, invests $100,000 in high-growth startups that are either based in North Dakota or have relations with the state.  

2. gBETA Fargo and gBETA Grand Forks: These free, seven-week accelerators are designed for early-stage companies with local roots. Each program is limited to five teams and requires no fees or equity.

3. Gener8tor 1889 Seed Fund: Named after the year North Dakota achieved statehood, this industry-agnostic venture capital fund targets investments ranging from $250,000 to $750,000 into seed-stage North Dakota startups.

Here are the detailed write-ups for the VC firms and angel investors:

Arthur Ventures

• Website: arthurventures.com
• Focused Sectors: Enterprise Software and SaaS.
• Funding Stages: Seed and Growth Equity Investments.
• Notable Investments: Leadpages, Zipnosis, WorkHound, Recapped.
• Total Investments: Over 40 companies

Arthur Ventures is a venture capital firm that invests in early-growth startups related to B2B software.

The network was founded in 2008 by Doug Burgum and James Burgum, making over 100 investments, with a current portfolio of approximately 50 companies and 18 successful exits.

As a VC firm, Arthur Ventures focuses on producing B2B health tech unicorns, beyond Silicon Valley. They mostly invest between $500,000 and $3 million in early-stage companies and participate in later-stage investments alongside other investors.

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 that is known for making investments in high-risk businesses. The team of investors launched the first fund back in 2019 and invested in around 20 startups.

In 2022, the firm launched its second fund, 701 Fund 2, with a capitalization of $5 million, aiming to continue investments in emerging technology industries across the Midwest.

The 701 Fund seeks startups that demonstrate strong growth potential and can generate at least 5-10x ROI. The fund typically invests between $50,000 and $150,000 per startup.

Homegrown Capital

• Website: homegrowncapital.com
• Focused Sectors: AgTech, Renewable Energy, and Local Entrepreneurs.
• Funding Stages: Early Stage Investments.
• Notable Investments: Regional agriculture and renewable energy projects.
• Total Investments: Undisclosed.

Homegrown Capital is a venture capital firm that was founded by General Partners Tim Weelborg and Matt Paulson.

The VC firm focuses on early-stage, tech and health companies in the Northern Plains. They usually invest in startups from Seed to Series A, with the ability to lead or co-lead rounds. Investors prioritize technology-driven companies without high regulatory hurdles and strong scalability.

The investment range of Homegrown Capital is between $500,000 and $1.5 million per company.

Jeremy Neuharth

• Focused Sectors: Technology, SaaS, and Fintech.
• Notable Investments: Undisclosed startups

Jeremy Neuharth is a seasoned entrepreneur and angel investor based in Fargo. In his entrepreneurial career, he co-founded Sycorr and has been a part of many notable businesses.

As an angel investor, Jeremy focuses on early-stage startups within the Healthtech and FinTech sectors. He wants to invest in companies led by experienced entrepreneurs who demonstrate determination and a clear vision for success.

Jeremy typically invests amounts ranging from $25,000 to $200,000.

Dan Hodgson

• Focused Sectors: Technology, Healthcare and Agriculture.
• Notable Investments: : Fairona, Virgin Plants, and Fixes 4 Kids

Dan Hodgson is an experienced angel investor and entrepreneur based in Fargo. Hodgson is also a famous entrepreneur and serves as president of FarmQA.

Before his role at FarmQA, Dan co-founded Linn Grove Ventures, where he served as Managing Director. He also led the Southern Valley Angel Fund and founded the Southern Valley Innovation Center in 2007.

In his investment interests, Dan focuses on early-stage startups, particularly those in the AgTech, SaaS, and IoT sectors. He seeks companies that offer unique solutions, scalability, and a strong management team.

The investment range of Dan Hodgson lies around $100,000.

John Mann

• Focused Sectors: Healthcare, Energy, and Consumer Products.
• Notable Investments: Regional startups in healthcare and energy.

John Mann is an angel investor based in Fargo, North Dakota. He focuses on early-stage startups in the AgTech/health sector and currently serves as the Program Manager at Grand Farm.

Before that, John also held roles at Plug and Play Tech Center, including Ventures Associate and Ventures Analyst in AgTech, from 2020 to 2023. He also served as Vice President of Investments at Bison Investment Fund between 2018 and 2020.

When making investments, John wants to invest in startups that can bring the next big breakthrough. He wants to partner with entrepreneurs who are well-experienced and have in-depth knowledge of their relative fields. As an investor, he aims to solve real-world problems.

John's investment range spans from $30,000 to $500,000, with a typical investment of around $150,000.

Wrap-Up: What You Need To Know

In short, ND is filled with startup investors who can invest huge pools of money into your business.

But, whom should you be pitching to? VC firms or angels that have a relatively lower investment range?

Well, angel investors are usually more approachable and willing to take risks, often focusing on smaller investments and providing mentorship. On the other hand, VC firms are institutions that manage larger pools of money, investing bigger amounts in startups with proven traction and scalability.

If you're in the early stages with just an idea or prototype, an angel investor might be the right fit. They often value potential, passion, and your vision. If you’ve already shown growth, have customers, and need significant funding to scale, VC firms might be better suited.