4 Top Venture Capital Firms in Minnesota

VC firms have become more powerful in Minnesota as of late (and particularly showed their investment aptitude during the pandemic). This is brought on by the number of talented entrepreneurs in the state, particularly those in the tech fields. In 2021, successful companies were able to secure more than $1.3 billion in funds. 

It should be noted, though, that there’s still a lot of room for growth in Minnesota. While the funding amount has doubled since 2020, Minnesota companies managed to secure less than 1% of the nation’s total venture capital funds. It’s a great time to get in on a burgeoning scene, one that’s starting a buzz amongst investors and startup owners alike. Let's take a closer look at some of the state's resources!

We also recommend checking out our full list of the top venture capital firms.

Top Venture Capital Firms in Minnesota Article.

Best Minnesota VC Firms

1. Brightstone

  • Location: Minneapolis, MN
  • Industries: Fintech, Cybersecurity, AI, Life Sciences
  • Stage: Crowdfunding, Early Stage Venture, Seed
  • Notable Portfolio Companies: HomeSpotter, VR Chat, FlipGrid

Brightstone manages a venture capital fund of $100 million. The founders, all of whom have an extensive background in successful investment, lean on their expertise to both select and foster promising companies. 

This VC fund works largely with technology and life sciences companies. The investors look for people with big ideas and then help them determine how to build their dreams into reality.

2. Cherry Tree & Associates

  • Location: Minnetonka, MN
  • Industries: Education, Consumer Goods, Agtech
  • Stage: Undisclosed
  • Notable Portfolio Companies: CIM Technology Solutions, Regent Education, Vantage Financial 

Cherry Tree was founded in 1980 as a VC firm. From there, they expanded into investment banking, which is now its largest service. Despite having switched primary focuses, the Managing Directors and Associates have a long history of helping entrepreneurs manage everything from mergers to leadership. 

The CEOS and CFOs have advised on more than $4 billion of financial transactions and the leadership team has held positions on more than 80 boards of directors. The team is in a unique position to leverage funding available, so promising startups can get the resources necessary to thrive.

3. Traction Capital

  • Location: Wayzata, MN
  • Industries: Mobile, Consumer Products, B2B
  • Stage: Seed, Series A
  • Notable Portfolio Companies: TroutRoutes, Control Brite, GoRoute, 

Traction Capital utilizes an eight-step approach in their investment process. Identification, analysis, valuations, negotiations, and development are all critical steps for the VC team to help their portfolio entrepreneurs realize their aspirations.

The company invests in a wide range of companies in the Midwest and helps them through the painstaking process of scaling up. Their private equity deals are based on unmet market opportunity and range from $500,000 to $1.5 million EBITDA.

4. Split Rock Partners

  • Location: Eden Prairie, MN
  • Industries: Healthcare, Software, Internet Services
  • Stage: All Stages
  • Notable Portfolio Companies: BigCommerce, Calix, Code42

Split Rock Partners are known for investing in new software, internet services, and healthcare companies. The team will invest across all stages of company development to ensure their portfolio company’s success. 

The team is known for being flexible when it comes to their investment strategies. So whether an entrepreneur is looking for primary, direct secondary, or a hybrid, they can work with the team and see if they can strike a deal.