Midwest venture capital is on a hot streak.
Following last month's news of Drive Capital's $300 million second fund and Hyde Park Venture Partners' $65 million fund, another Midwest firm announced that it has raised $20 million for a fund of its own, and it looking to expand its reach in the Chicago tech community.
Omaha, Nebraska-based Dundee Venture Capital said Tuesday that it has raised $20 million for its third fund, which has a target capital raise of $30 million. Dundee also announced a strategic partnership with Chicago-based Lakewest Venture Partners in a move the firm hopes will result in more deals in Chicago tech companies. Lakewest co-founder David Mann will join Dundee as part of partnership, and Mann and his Lakewest co-founders will now run Dundee’s office in Chicago.
“Lakewest has strong roots in the Chicago startup ecosystem, and by partnering with Dundee, we’re broadening our combined access to many exceptional deals here,” Mann said in a statement.
Along with Chicago, Dundee plans to primarily focus on startups in the broader Midwest region, including Denver, Omaha, Lincoln, Kansas City, Madison, Minneapolis, Indianapolis, and St. Louis. The firm targets e-commerce, B2B SaaS and consumer-network focused startups.
Dundee has already invested in Chicago companies like Blitsy, Shiftgig, Popular Pays, Built In and Inventables. Lakeweat has made 22 investments in Chicago, including Food Genius, Opternative, Shiftgig, Blitsy, and NuCurrent.
“The world is taking notice of the silent wave of creativity and innovation building in the Midwest,” Mark Hasebroock, founder of Dundee Venture Capital, added in the statement. “By providing the fuel, inspiration and hands-on experience to help founders move faster, Dundee is supporting startups with a vision of becoming transformative, emerging market leaders. We are excited to use Fund III to continue our work as an innovation-driving force in the Midwest.”
