Throughout the year, we've worked to keep our readers informed on all the latest tech moves happening in Minnesota, but to recap, we've rounded up some of the biggest headlines of 2019.
We cover the state's biggest tech and startup news each day in our Beat newsletter, which you can sign up for here.
In no particular order, here are a few of the stories that shaped Minnesota's tech and startup scene in 2019:
Local Firms Announce New Funds
Great North Labs and Matchstick Ventures, Minneapolis-based venture capital firms with a history of backing local tech startups, both announced this year that they had raised new funds.
In June, Great North Labs closed its first fund at $23.7 million – likely one of the largest debut seed funds raised in the Midwest. Based in Minneapolis and St. Cloud, Great North Labs said at the time that it planned to use the funding to back fledgling startups in the Upper Midwest.
Several months later, Matchstick announced that it closed its second fund at $30 million and would use the capital to support early-stage software companies in the North, the Rockies and companies across the Techstars ecosystem.
Bright Health Breaks Minnesota Funding Record–Again
Minneapolis insurance startup Bright Health announced in late December that it had secured $635 million in a Series D round of funding, bringing the company's total equity raised to more than $1 billion.
Bright's $635 million is likely the largest VC raise in Minnesota history. The previous holder of that record? Bright Health. And prior to that? Also Bright Health. In 2017, the company raised $160 million in a round led by Greenspring Associates. And in November 2018, it secured another $200 million.
The U's Carlson School Turned 100
The University of Minnesota's Carlson School of Management, a pillar in the Minnesota tech and business ecosystem, turned 100 years old this fall.
The MN Cup, the state's largest startup competition, is just one facet of the Carlson School’s expansive entrepreneurship presence in Minnesota. The University itself spins out more than a dozen startups a year on average through its Venture Center. It recently announced that it had spun out a record number of 19 within the last year. The Carlson Center also supports groups like Atland Ventures, a venture capital firm that helps undergraduate students invest in Twin Cities startups.
WeWork Continues MN Expansion
Although coworking giant WeWork wrestled with IPO drama on the national stage, it managed to open a third Minneapolis location in 2019. Located in the North Loop, the new 60,000 square-foot space occupies two floors in The Nordic, a new building under construction in the neighborhood.
The Biz Journal reported later in the year that WeWork was close to reaching a deal with The Dayton's Project to lease the entire third floor of the massive downtown Minneapolis redevelopment project. Things fell through, however, after WeWork's failed IPO.
Angel Tax Credit Returns
Gov. Tim Walz and other state lawmakers announced plans in June to reinstate a program that gives tax breaks to those investing in Minnesota startups. Prior to its two-year hiatus, the program was (in general) popular among local startups, and many were happy to see it return. By the end of the year, the program saw 70 investments totaling $37 million; 348 investors and 25 funds have registered.
New Accelerators
Minnesota's startup scene welcomed at least five new accelerators in 2019.
Med-tech giant UnitedHealthcare, working in partnership with Techstars, selected 10 companies to participate in its first cohort.
Local entrepreneur Rob Walling debuted TinySeed, an accelerator program designed for self-funded (or bootstrapped) software startups.
Midwest startup accelerator gener8tor created new gBETA programs with the University of St. Thomas and the Greater St. Cloud Development Corp. The St. Cloud program marked gener8tor's first expansion into Central Minnesota. Funded by the Richard M. Schulze Family Foundation, gener8tor created gALPHA and gBETA programs within St. Thomas.
Gener8tor also debuted the first cohort of its OnRamp Insurance Accelerator, a new program in partnership with two Twin Cities insurance giants: Allianz Life Ventures and Securian Financial.
Forge North Makes Its Formal Debut
Forge North has been working quietly in the background of Minnesota’s startup community for several years. The initiative started in earnest with support from the Bush Foundation, Beta, gener8tor, Bunker Labs and others who wanted to work together in partnership year-round. It wasn’t enough to just meet for happy hour every couple of months; they wanted to share ideas and resources to help startups inside and outside of their networks.
In July, Forge North hosted an event, called Horizon, to mark the formal launch of what these groups have been building over the past few years. In the coming years, they’ll work together to take on big challenges facing Minnesota’s startup community.
