Capital

Starting a new business requires financing, and for many entrepreneurs this can be a challenge.  After an entrepreneur has exhausted his or her own savings and personal line of credit, and the goodwill of family and friends, there may be a need to seek out formal sources of capital.  Or an early-stage, high growth company may seek capital from an outside firm to invest in its growth. 

Regardless of the scenario, there is no shortage of capital sources in the region, the states of Minnesota and North Dakota, or the Midwest as a whole. 

Connecting to angel investors and venture capitalists is surprisingly easy in Fargo Moorhead.  In contrast to many big cities, regional capital sources are remarkably accessible, thanks to the small-town feel of the community and the connectedness of its citizens. In addition, angels that invest in North Dakota-based businesses benefit from a 45 percent tax credit, up to $112,500 per year, helping to mitigate the risk that is inherent in investing in start-ups.

Seed Capital

Local and State

The primary angel investment fund in the Fargo Moorhead area is the FM Angel Investment Fund, part of RAIN Source Capital’s RAIN Fund Network.  The FM Angel Investment Fund looks for equity investment opportunities in early to mid-stage private companies located in North Dakota and/or Minnesota, that operate in the manufacturing, software or related technology sectors and have high growth potential.

Valley Angel Investment Fund, based in Grand Forks, North Dakota, is part of RAIN Source Capital’s RAIN Fund Network.  

Venture Capital

Local, State and Region

Arthur Ventures Growth Fund, LLC is a venture capital fund that seeks to identify and invest in well-managed businesses with potential for strong growth to yield significant return on investment for both business and investor. Arthur Ventures will focus 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. The companies that we invest in and partner with will improve the human condition while satisfying the economic conditions that will support a perpetual cycle of innovation, entrepreneurship, investment, and global growth.

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) will invest in a variety of technologies and types of businesses, including North Dakota Department of Commerce strategic target industries of value added agriculture, technology, advanced manufacturing, energy and tourism. BND will also invest in growth and later stage manufacturing, service and businesses with profitable growth potential.

Milestone Growth Fund, Inc., http://milestonegrowth.com
Invests in minority-owned businesses in early and expansion stages with proven track records. 

Square One Ventures, LLC, http://www.smaby.com
Focuses on forming, funding, incubating and advising early-stage IT start ups. 

Split Rock Partners, http://www.splitrock.com
Invests in emerging opportunities in health care (specifically medical devices), software, internet services and business and consumer services. 

StarTec Investments, LLC, (952)883-3210
Invests in early-stage technology companies.

Thomas, McNerney & Partners, http://www.tm-partners.com
Invests in pharmaceutical, medical device, biotechnology and diagnostic service firms.