The year is coming to a close, which means it is time to look back at some of the biggest Minnesota tech and startup stories from 2017. This year's list includes a record number of co-working companies opening in the Twin Cities and Minnesota's largest venture capital raise to date.
Is there a story that you think we missed? Reach out: mkennedy@americaninno.com.
Jamf Software Sold to Vista Equity Partners
Growing Minneapolis-based software company Jamf reached a deal with Vista Equity Partners in October to be sold for an undisclosed amount.
Terms of the deal were not disclosed, but Jamf was valued at around $170 million in 2013 when it raised a $30 million round of funding. Since then, the business has continued to grow, breaking $100 million in annual revenue for the first time in 2016.
This was Vista's second acquisition of a Twin Cities software company in a year. In 2016, the firm paid $153 million for St. Paul-based GovDelivery. It also owns Newscycle Solutions, which is located in Bloomington.
At the time of the announcement, Jamf CEO Dean Hager told the Business Journal that the company expected to maintain its Twin Cities operations after the deal closes. Hager added that Jamf did not put itself up for sale, and that the deal would give Jamf resources to make acquisitions.
Bright Health Raises Largest Funding Round in Minnesota History
In June, health insurance startup Bright Health closed on a $160 million round of venture capital led by Greenspring Associates. The raise is likely the largest in Minnesota history.
Bright Health was launched in 2016 by local health care entrepreneurs Kyle Rolfing and Tom Valdivia, along with former UnitedHealthcare CEO Bob Sheehy. The company raised a $80 million Series A the same year it was launched. Bright Health sells individual health plans, as well as Medicare Advantage plans.
Shortly after closing the $160 million round, Bright Health purchased Spyder Trap, a Minneapolis digital marketing firm. As part of the deal, Spyder Trap's founder and CEO, Mike Rynchek, joined Bright Health as the company's chief technology office.
Minnesota Sees Most IPOs in a Decade
Three Minnesota companies completed initial public offerings in 2017, the most the state had seen in a decade. Prior to this year, Minnesota had not completed more than two IPOs in a year since 2007.
The first IPO of the year was from ASV Holdings Inc., a Grand Rapids-based company that creates compact truck loaders. ASV raised just over $26 million from its May 12 IPO.
Gene-editing startup Calyxt raised the most of the three, bringing in $56 million when it went public in July. Two months later, the company broke ground on its new headquarters in Roseville. Another biotech company, Celcuity, completed its IPO in September, raising around $23M.
The Twin Cities Co-Working Craze
Like other growing tech hubs across the country, the Twin Cities area has seen an increase in co-working spaces over the last several years. In 2017, that number saw its most dramatic uptick yet. Currently, there are more than 20 co-working spaces in the Twin Cities area. Here are some of the most significant co-working headlines this year:
- International co-working giant WeWork opened its first Twin Cities office in the Capella Tower in October.
- Just two months after opening its first location, WeWork announced plans to add another Twin Cities location in Uptown.
- Industrious added a second Minneapolis location in the North Loop.
- COCO completed renovations on its downtown location in the Minneapolis Grain Exchange. The renovations doubled the size of this office, making COCO's largest co-working space even larger.
- German co-working company Space announced plans to move into the North Loop. The company is expected to open the office in the spring of 2018.
- Sports tech hub The Pitch announced that it would suspend its co-working operations starting in 2018.
Amazon's Presence in the Twin Cities
After offering Amazon around $3 million in incentives for its second North American headquarters (HQ2), Minnesota has been labeled by many as a long-shot for the highly-coveted HQ2. The Twin Cities was one of 238 regions to send proposals for HQ2 in October. Several cities, including Chicago and Pittsburgh, have offered Amazon incentives worth around $1 billion.
Amazon has had, and will likely continue to have, a serious presence in the Twin Cities regardless of whether or not Minnesota lands HQ2. In addition to a large fulfillment center in Shakopee, Amazon also has a somewhat stealthy tech office in the North Loop that specializes in transportation technology software. Amazon initially said that it planned to hire 100 people in this office, but its 66,000 square feet of space could accommodate up to 440, the Business Journal reports.
