South Dakota is building a strong foundation in tech, with a growing number of successful startups calling the state home. We've explored the startup landscape here to highlight the top investors and VC firms helping South Dakota's expanding market. Using recent data and insights, we've compiled a list of the top 10 VC funds driving growth and innovation across the state.
Here's a table that summarizes the overall VC data for a quick overview:
| VC Firm | Ticket Size | Stages | Founding Year |
|---|---|---|---|
| Homegrown Capital | $500K–$1.5M | Early-stage (Seed to Series A) | 2021 |
| South Dakota Innovation Partners (SDIP) | $6M | Early-stage | 2008 |
| Bluestem Capital | $5M - $10M | Growth-stage | 1989 |
| Enterprise Institute Angel Fund Network | Varies across funds | Seed and early-stage | 2001 |
| Cresten Capital Holdings | Fund Size $40B | Growth-stage | 1991 |
| Gener8tor South Dakota | $100K - $750K | Seed and early-stage | 2012 |
| Second Catalyst | $1M–$5M | Early-stage | 2006 |
| Ernst Capital Group | $1M–$5M | Growth-stage | 2007 |
| Black Kanyon | $1M–$5M | Growth-stage | 2020 |
| Dakota Venture Group | $50K–$500K | Seed and early-stage | 2006 |
1. Homegrown Capital
Homegrown Capital LLC is a South Dakota-based venture capital firm that backs early-stage, tech-driven companies in the Northern Plains. Led by experienced partners Tim Weelborg and Matt Paulson, who have facilitated and invested in numerous angel deals, the firm is supported by a team of advisors. These experts help identify promising opportunities and guide their portfolio companies toward growth and success.
- Website:Homegrown Capital
- Founding Year:2021
- Investment Range:$500K–$1.5M
- Stage:Early-stage (Seed to Series A)
- Sector:Technology-driven businesses, AgTech, FinTech, B2B software
- Geography:Northern Plains, including South Dakota
- Notable Investments:Bushel, ProsperStack, Soiltech Wireless, Grain Weevil, SiteKickHomegrown Capital
- Submit Pitch/ Contact: Link
2. South Dakota Innovation Partners (SDIP)
South Dakota Innovation Partners is a venture capital firm based in Sioux Falls that invests in companies within the agriculture technology, food tech, and life sciences sectors. They focus on supporting innovative solutions that drive progress in these critical industries, helping startups grow and succeed.
- Website:South Dakota Innovation Partners
- Founding Year:2008
- Investment Range:6 Million
- Stage:Early-stage
- Sector:Agriculture, nutrition, environmental technology
- Geography:South Dakota and neighboring states
- Notable Investments:Prairie Aquatech, Medgene Labs, Novita Nutrition
- Submit Pitch/ Contact:mark@southdakotainnovation.com
3. Bluestem Capital
Bluestem Capital Company, LLC is a private equity firm with over 100 years of combined experience among its leadership. The firm actively supports its portfolio companies by holding board seats and working closely with management to provide strategic guidance. Bluestem is dedicated to helping businesses grow by offering hands-on, collaborative direction.
- Website:Bluestem Capital
- Founding Year:1989
- Investment Range:5-10 Million
- Stage:Growth-stage
- Sector:Healthcare, technology, energy
- Geography:Midwest U.S., including South Dakota
- Notable Investments:Various regional businesses
- Submit Pitch/ Contact:info@bluestemcapital.com
4. Enterprise Institute Angel Fund Network
The Enterprise Institute is a non-profit organization that supports high-growth entrepreneurs in South Dakota. They offer business development and market research services and manage angel investment funds that provide early-stage capital to scalable companies. Focused on innovation, these funds invest in startups with strong growth potential. They primarily invests in South Dakota, while sometimes considering nearby states.
- Website:Enterprise Institute
- Founding Year:2001
- Investment Range:Varies across funds
- Stage:Seed and early-stage
- Sector:Scalable tech businesses, AgTech, Biotech
- Geography:South Dakota
- Notable Investments:Black Hills Regional Angel Fund, Hub City Capital, Park Capital Fund
- Submit Pitch/ Contact: info@sdei.org
5. Cresten Capital Holdings
Cresten Capital is an asset management and investment firm focused on growth companies with sustainable business models, strong recurring revenue, and excellent cash flow. By partnering with skilled entrepreneurs and management teams, they unlock value, improve profitability, and scale businesses. Cresten Capital’s approach is hands-on, entrepreneurial, and people-centered, fostering an ownership culture to drive success.
- Website:Cresten Capital
- Founding Year:1991
- Investment Range:Fund Size 40B$
- Stage:Growth-stage
- Sector:Real estate, energy, private equity
- Geography:U.S., including South Dakota
- Notable Investments:Various U.S.-based companies in real estate and energy cience
- Submit Pitch/ Contact: Link
6. Gener8tor South Dakota
Gener8tor North Dakota invests in five high-growth startups per cohort, without focusing on any specific business model or industry. Each startup receives $100K in funding and joins a 12-week accelerator program. The program provides hands-on mentorship and resources to help entrepreneurs from all sectors grow their businesses.
- Website:gener8tor.com
- Founding Year: 2012 (program launched in North Dakota in recent years)
- Investment Range: $100K - $750K
- Stage: Seed and early-stage
- Sector: Industry-agnostic
- Geography: North Dakota, with programs in Fargo and Grand Forks
- Notable Investments: Startups accelerated through gBETA Fargo and Grand Forks
7. Second Catalyst
Second Catalyst Capital focuses on partnering with management teams to build scalable businesses with sustainable products, processes, and people. They combine deal generation, thorough due diligence, and long-term portfolio support. While managers handle daily operations, Second Catalyst assists with strategic planning, expanding services, optimizing operations, and enhancing management expertise. They also drive growth through acquisitions and upgrading business systems to ensure long-term success.
- Website:Second Catalyst
- Founding Year:2006
- Investment Range:$1M–$5M
- Stage:Early-stage
- Sector:Technology, manufacturing, real estate
- Geography:South Dakota and beyond
- Notable Investments:Multiple regional tech startups
- Submit Pitch/ Contact: Link
8. Ernst Capital Group
Ernst Capital is a South Dakota-based real estate investment firm that connects investors with local real estate projects. Founded in Sioux Falls, the firm partners in commercial real estate development, providing capital, financial expertise, and support services. Ernst Capital offers private real estate funds, asset management, property acquisitions, and 1031 exchange assistance, helping investors diversify their portfolios while benefiting the local community
- Website:Ernst Capital
- Founding Year:2007
- Investment Range:$1M–$5M
- Stage:Growth-stage
- Sector:Real estate, financial services
- Geography:South Dakota
- Notable Investments:Commercial and residential real estate projects
- Submit Pitch/ Contact: Link
9. Black Kanyon
Black Kanyon is a holding company focused on business and real estate acquisitions. Specializing in value-add assets, they work to unlock the full potential of each investment. Backed by a creative and inspiring team of top talent, Black Kanyon is dedicated to executing its vision and driving growth across its diverse portfolio of real estate and active companies.
- Website:Black Kanyon
- Founding Year:2020
- Investment Range:$1M–$5M
- Stage:Growth-stage
- Sector:Financial services, technology
- Geography:South Dakota and Midwest U.S.
- Notable Investments:Financial tech companies
- Submit Pitch/ Contact: Link
10. Dakota Venture Group
Dakota Venture Group (DVG) is a student-run venture capital fund at the University of North Dakota. They give students hands-on experience in the world of investing. DVG manages every part of the process, from researching companies to negotiating deals. They offer a rare opportunity to learn venture capital through real-world practice.
- Website:Dakota Venture Group
- Founding Year:2006
- Investment Range:$50K–$500K
- Stage:Seed and early-stage
- Sector:Technology, agriculture, and healthcare
- Geography:Midwest U.S., including South Dakota
- Notable Investments:Various Midwest-based startups
- Submit Pitch/ Contact: md@dakotaventuregroup.com
FAQ (Frequently Asked Questions)
- Is VC high risk?
Venture capital is a type of investment that can be risky but has the potential for high returns. However, there is no guarantee of success. Investing in startups is always uncertain, and you might lose your money. Even though VC firms try to minimize risks, investing in startups is always uncertain, and you might lose your money. - What is the best country to set up a VC fund?
If you’re looking to set up a VC fund, many people think the United States has the best venture capital (VC) funds worldwide. This is because the US has a big economy, lots of money available, and many successful startups. - What cities have the most VC investments?
The top five cities for venture capital investment are San Francisco, New York City, Boston, San Jose, and Los Angeles. These cities together receive more than two-thirds (67.5%) of all venture capital investments. - What is the minimum amount for a VC fund?
Venture capital funds usually ask for a minimum investment of $250,000 to $500,000, and sometimes even more. Investing a small amount of money can still cost a lot. These funds are usually only open to wealthy people and big organizations that have a lot of money. - How do I choose a VC fund?
To choose a VC fund, check how much experience and success the venture capital firm has had before. Look at the companies they’ve invested in before to see if they match what your business does. This can help you figure out if they’re a good match for you. - Best of luck with your amazing ventures.
Please note that this list is filtered by various metrics, and all the data are collected through various third-party websites, mostly the VC website. Since data such as ticket size or industry may change, you are requested to visit the official website given in the blog for the latest and updated information.