Minnesota companies appear to have bucked the trend of a global slowdown in venture capital funding.
For the third quarter of 2022, global venture funding totaled $81 billion, down 53% compared to last year, Crunchbase reported. But in Minnesota, funding in 2022 surpassed last year's total (about $1.3 billion vs. 2021's $935 million), though the number of deals is down, according to Business Journal research of Crunchbase data.
In both years, local cybersecurity firm Arctic Wolf took the top spot in the list, most recently by using convertible note financing. (A convertible note is a type of short-term debt that will convert into equity, often in a future funding round.) Last year, the company raised $150 million in a Series F equity funding.
While 2022 isn’t over – and startups may still yet emerge from stealth mode – below is a list of the top capital deals for Minnesota-based companies of 2022, according to Crunchbase data.
Minne Inno included pre-seed, seed, series, venture, angel and convertible note funding rounds.
$401M, Arctic Wolf: The Eden Prairie-based company raised the funds through a convertible note offering in October. The round was led by existing investor Owl Rock of New York.
$85M, HistoSonics Inc.: The Plymouth-based medical technology company that's developing a non-invasive device to destroy cancerous tissue raised the funds in a convertible-note form of financing. The post-Series C round was led by Johnson & Johnson Innovation. The note will convert to equity in a future Series D round.
$85M, Compute North: The Eden Prairie operator of data centers used to mine cryptocurrency raised the Series C venture capital from lead investors Geneva, Switzerland-based Mercuria and San Francisco-based Generate Capital. In September, the company filed for bankruptcy.
$75M, Branch: The Minneapolis-based tech firm aimed at helping employers speed up paydays for workers, raised the funds in a Series C round, led by New York City-based Addition.
$50M, Dispatch: The Bloomington logistics tech startup secured the Series C funds using money from New York City-based PeakSpan Capital.
$50M, Inspectorio: Minneapolis software firm secured the funds in a Series B round led by New York City-based Insight Partners.
$35.4M, 4C Medical Technologies Inc.: The Maple Grove-based medical device company raised the money through a Series C financing round, led by MicroPort CardioFlow Medtech Corporation (HKEX:2160).
35M, Monteris Medical Inc.: The Minnetonka-based company, which makes laser technology that fights brain tumors, raised the funds in a Series D equity financing round. A new investor, New York City-based investment firm InnovaHealth Partners, led the round.
30M, Nice Healthcare: The on-demand, in-home and virtual clinic based in Minneapolis closed on the Series A funding round in March. Sao Paulo, Brazil-based DNA Capital led the round.
