5 Top Venture Capital Firms in Tennessee

Many factors make Tennessee a great startup ecosystem and venture capital provider. The state has a long history of supporting successful entrepreneurship and innovation, and its business-friendly environment and supportive infrastructure have helped many startups thrive.  

The state's strong venture capital community also provides significant VC funding for early-stage businesses. In addition, its location in the Southeast gives startups access to a large market of potential customers.

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

Top Venture Capital Firms in Tennessee Article.

Best Tennessee VC Firms

1. Pharos Capital Group

  • Location: Nashville, TN
  • Industries: Healthcare
  • Stage: Series C
  • Notable Portfolio Companies: Beacon Specialized Living, Charter Healthcare Group, FasPsych

Pharos seeks to be a value-added partner with detailed healthcare sector experience in order to generate attractive, risk-adjusted returns. They believe that increased transparency in healthcare quality and price, alongside rising cost pressures from insurers, will result in a more receptive market for businesses that improve healthcare outcomes and reduce total healthcare costs. 

Whenever possible, they seek to provide high-quality care and economical healthcare solutions to underserved populations and communities, in addition to small and complex populations, to increase accessibility and ease of healthcare services. They typically invest between $25 million and $50 million in healthcare firms seeking late-stage funding.

2. Claritas Capital

  • Location: Nashville, TN
  • Industries: Technology, Healthcare Management
  • Stage: Seed Stage
  • Notable Portfolio Companies: Apcela, Cogitativo, Alchemy 43

Claritas seeks to partner with entrepreneurs who have an established business model in technology and healthcare to provide $2 million to $5 million in investment capital, either as debt or equity. 

Claritas can assist with developing management teams, acquiring new clients, developing financing strategies, evaluating strategy and business model modifications, and following through on exit opportunities. 

3. Gen Cap America

  • Location: Nashville, TN
  • Industries: Manufacturing, Distribution, Consumer Products, Industrial Goods
  • Stage: Series B
  • Notable Portfolio Companies: Frontier Packaging, TFM Services, Griffin Gear

Gen Cap America was established in Nashville in 1988 as a private investment firm. GCA focuses on investing in privately held middle- and lower-middle-market companies to meet their investment needs. Typically, GCA invests between $10 million and $200 million. 

4. SSM Partners

  • Location: Memphis, TN
  • Industries: Healthcare Software & Services, B2B
  • Stage: Series B
  • Notable Portfolio Companies: Mnet Health, ProviderTrust, SmashFly

This firm has been helping its companies achieve success for over 25 years by providing them with long-term funding and assistance in order to accelerate their progress. 

SSM Partners provides growth capital to profitable healthcare software & services, B2B companies. The firm's investment range is $10 million to $30 million for a minority or majority position. 

5. Innova Memphis

  • Location: Memphis, TN
  • Industries: Technology, Healthcare, AgTech, Logistics & Supply Chain, B2B Tech, Home Services
  • Stage: Seed Stage
  • Notable Portfolio Companies: L7 Logistics, AgriSync, Restore Medical

Innova Memphis, an early-stage VC firm, invests in high-growth companies across a variety of fields. Due to Innova's primary interest in technology, healthcare, and agtech, a large number of companies have helped grow from their pre-seed stages to become fully successful enterprises since 2007. Innova looks for great business innovators to create disruptive products and services.