The Minnesota startup scene saw a number of notable exits, acquisitions and venture capital fundings during the first month of Q4.
The largest raise on our list this month is Piper Jaffray's Merchant Banking Fund II, which the investment bank closed at $130 million. October's largest venture capital round for a tech company belonged to Arctic Wolf Networks, a California company with growing Minnesota roots, which snagged $45 million to finance growth efforts.
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Read Minne Inno’s past monthly funding roundups here.
FUNDINGS
Arctic Wolf Networks
- Cybersecurity startup Arctic Wolf Networks, a Silicon Valley company with a growing presence in the Twin Cities, closed on $45 million in venture capital. The Sunnyvale, California-based startup said the fresh funds will go toward financing growth efforts such as expanding its service offerings.
Cardialen
- Med-tech company Cardialen has closed on $17 million in venture capital that will go toward ramping up hiring and clinical studies. The Minneapolis-based company is developing tech to treat abnormally fast heart rhythms. Cardialen will put its recently won funding toward a clinical trial. The company has six employees, but expects that number to reach between 10 to 20 in the coming months.
North Sky Capital
- North Sky Capital is seeking $100 million for its latest clean-tech fund. The Minneapolis-based investment firm has already raised nearly $63 million from 40 investors for its Clean Growth Fund V.
Matchstick Ventures
- Matchstick Ventures, which has been an active investor in Minnesota tech startups in recent years, has raised $12.3 million for its planned $25 million fund, according to a regulatory filing. St. Paul-based Matchstick Ventures launched in 2013 and is led by Managing Partner Ryan Broshar, who also runs the Target + Techstars retail program. Matchstick recently expanded its footprint into Colorado, hiring Natty Zola to serve as a partner based in Boulder, Colorado.
Piper Jaffray
- Piper Jaffray Cos.' merchant banking unit closed on $130 million for a fund that will invest in growing companies. The investment bank's Piper Jaffray Merchant Banking Fund II has already put capital into three companies, including Minneapolis-based Foodsby, which raised $13.5 million last month. The fund will back businesses in industries that Piper Jaffray's research and investment banking staff follow, including tech, healthcare and business services.
Total Expert
- Growing financial-technology company Total Expert has closed on a $20 million round of venture capital to accelerate growth. Emergence Capital, a San Mateo, California-based venture capital firm that counts Salesforce, Yammer and Crunchbase among its portfolio companies, led Total Expert’s new round. St. Louis Park-based Total Expert makes marketing, compliance and reporting software.
ACQUISITIONS
Avionté Snaps Up San Francisco Company
- Avionté, which makes staffing and recruiting software, acquired San Francisco, California-based Compas Technology for an undisclosed amount. Compas makes software that companies use to track job applicants, manage job boards and handle other tasks.
Next Coast Ventures Does its First MN Deal
- Mendota Heights-based Navegate was sold to an investor group in a deal led by Next Coast Ventures, a venture capital firm that largely invests in companies based away from the East and West Coasts. The transaction marked Austin, Texas-based Next Coast's first deal in the Twin Cities.
Two Concussion Companies Collide
- Prevent Biometrics, a sports-tech startup that creates a concussion-monitoring mouthguard, acquired the head impact technology of Seattle-based X2 Biosystems. The transaction brings together two growing head monitoring technologies – Prevent’s Impact Monitor Mouthguard and X2’s skin patch-based platform. Terms of the deal were not disclosed.
WholeMe Bought By Log House
- WholeMe, a startup making grain-free snacks, was sold to Twin Cities food manufacturer Log House Foods. Terms of the deal were not disclosed. Former bakery owner Krista Steinback and Mary Kosir, previously a Carlson School of Management dean, launched WholeMe to create healthy snacks about four years ago. The startup raised capital through both a Kickstarter campaign and from private investors. It closed on $1 million from angel investors about two years ago.
