Venture capital fund launches with $17M

Feb. 8, 2022

A venture capital fund formed by well-known names in the entrepreneurship community has launched with more than $17 million available to regional technology startups.

Homegrown Capital was formed by MarketBeat founder and CEO Matt Paulson and Tim Weelborg, former executive director of the Enterprise Institute, who joined forces after they said they recognized a growing need for follow-on funding in South Dakota and surrounding states.

Within months, they had raised $17.2 million to launch Homegrown’s initial fund from individual and institutional investors, including 50 South Capital, the Dakota State University Foundation and several local banks.

“The DSU Foundation is proud to invest in this initiative,” Jon Schemmel, president and CEO of the DSU Foundation, said in a statement. “We believe our investment into the Homegrown Capital Fund aligns with the vision for Dakota State University and that it will increase opportunities for DSU graduates to have more career opportunities in the world of cyber and technology in the state of South Dakota and surrounding areas.”

Startups can apply for up to $1.5 million in funding.

While Homegrown is a new firm, the partners bring a long record of angel investment, entrepreneurial and community-building experience. Weelborg has facilitated over 100 angel deals and established 14 angel funds across South Dakota, and Paulson has invested in more than 75 startups in addition to raising and deploying over $5 million during his time as chairman of the Falls Angel Fund.

“Raising $17 million over several months is a major accomplishment, but it is the starting line for our fledgling venture capital firm,” Paulson said. “We now have the much harder task of deploying that capital into startup technology companies in the region and creating a positive return for our investors. It’s an exciting opportunity to prove ourselves.”

The fund is using the following criteria for the high-growth startups that fit its scope of investment:

  • Stage focus: Homegrown leads or co-leads a seed or series A round with an investment of $500,000 to $1.5 million.
  • Industry focus: Homegrown is specifically interested in high-tech companies in most B2B software, agricultural technology and financial technology companies that demonstrate robust scalability.
  • Geographic focus: Homegrown focuses on empowering companies in South Dakota, North Dakota and contiguous states in the Northern Plains.

Companies that meet Homegrown’s criteria can apply for funding at homegrown.capital.

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Venture capital fund launches with $17M

A venture capital fund formed by well-known names in the entrepreneurship community has launched with more than $17 million available to regional technology startups.

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