Connecting to angel investors and venture capitalists is surprisingly easy in Fargo Moorhead. Compared to many big cities, regional capital sources are remarkably accessible in Greater Fargo Moorhead, thanks to the community’s small-town feel and the connectedness of its citizens. In addition, angels that invest local companies benefit from income tax credits in both Minnesota and North Dakota, helping to mitigate the risk that is inherent in investing in start-ups.
Seed Capital – Local & State
The primary angel investment fund in the Fargo Moorhead area is the FM Angel Investment Fund. It looks for equity investment opportunities in early- to mid-stage private companies located in North Dakota or Minnesota, that operate in the manufacturing, software or related technology sectors and that have high growth potential. The Fargo Moorhead fund also syndicates deals with the angel funds in Grand Forks and Wahpeton, N.D.
Venture Capital – Local, State & Region
Arthur Ventures Growth Fund focuses its investments in the three target industry sectors of information technology, life sciences and clean technology, and an investment size that is post-angel investment and pre-institutional VC funding. Ideal investment opportunities have established business models, prototypes, and are positioned for rapid growth. However, the company is open to hearing from quality companies and entrepreneurs and evaluating opportunities that fit its investment focus no matter what the industry or investment stage.
InvestAmerica Venture Group manages several funds that make investments in businesses based in Minnesota or North Dakota. InvestAmerica focuses on opportunities with companies with sales typically ranging from $10-$50 million and strong growth potential. The group typically invests in series A financing for companies operating in the manufacturing, service, distribution and technology industries.
Linn Grove Ventures invests in early- and mid-stage life science companies with outstanding technology. It is active in providing strategic financing and business leadership to help innovative companies move beyond the business incubator and accelerator phases to the next level of growth.
The Bank of North Dakota New Venture Capital Fund provides funding for early-stage companies which can show clear proof of completed product development and market acceptance as evidenced by growing sales. The Bank of North Dakota (BND) invests in a variety of technologies and types of businesses, including N.D. Department of Commerce strategic target industries of value-added agriculture, technology, advanced manufacturing, energy and tourism. BND also invests in growth and later-stage manufacturing and service businesses with profitable growth potential.
Milestone Growth Fund invests in minority-owned businesses in early and expansion stages with proven track records.
Square One Ventures focuses on forming, funding, incubating and advising early-stage IT start-ups.
Split Rock Partners invests in emerging opportunities in health care (specifically medical devices), software, Internet services and business and consumer services.
StarTec Investments (952-883-3210) invests in early-stage technology companies.
Thomas, McNerney & Partners invests in pharmaceutical, medical device, biotechnology and diagnostic service firms.