Top 10 VC Funds in Tennessee

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Tennessee has a lively startup scene with well-known startups like Monogram Health, GoNoodle, Campaign Monitor etc. Investors are more interested than ever in investing in the startups of this state. Setting up a business is relatively easy here. More and more investors and venture capital firms are coming here to support entrepreneurs. We have made a list of Top 10 VC Funds in Tennessee.

Here's a table that summarizes the overall VC data for a quick overview:

VC Firm

Ticket Size


Founding Year

Pharos Capital Group

$25M - $50M

Later (Buyout)


Claritas Capital

$2M - $5M

Early, Late, Private Equity 


Gen Cap America

$10M - $200M

Middle Market


SSM Partners

$10M - $30M



Innova Memphis


Pre Seed, Seed, Early


Council Capital

$5M - $50M

Early Growth, Growth


Frist Cressey Ventures

$10M - $50M

Early, Seed


Mountain Group Capital

$5M - $10M

Early, Late, Seed


NueCura Partners

 $1M - $5M



Altitude Ventures

$7M (avg.)

Early, Seed


1. Pharos Capital Group


Pharos Capital Group is a private equity firm founded by physicians. Specializing in healthcare, they invest in companies aiming to reduce healthcare costs, improve patient outcomes, and increase access to care. With over $1 billion in assets under management as of March 31, 2023, Pharos has invested in 58 companies. They typically invest $25-$50 million in rapidly growing middle market companies for various purposes like internal growth, acquisitions, or management buyouts.


Founding Year: 1998

Investment Range: $25M - $50M

Stage: Later (Buyout)

Sector: Healthcare, Business Services and Technology

Investment Geography: United States

Notable Investments: Charter Healthcare Group, Behavior Care Specialists, Providence Home Health, THEMA Health Services, Vantage Outsourcing 

Submit Pitch/ Contact: Link

2. Claritas Capital


Claritas Capital, based in Nashville, partners with entrepreneurs and developers to invest in innovative opportunities across private equity, private credit, and real estate. With over 20 years of experience, they offer investment programs for family offices, institutions, and strategic investors. In private equity, they focus on growth-oriented teams in healthcare, technology, and services. In private credit, they provide financing solutions for middle-market companies. Their real estate arm partners with Southeast developers, offering both debt and equity structures for various asset classes.


Founding Year: 2002

Investment Range: $2M - $5M

Stage: Early, Late, Private Equity 

Sector: Healthcare, Technology, Media/Entertainment, Real Estate

Investment Geography: Nashville, Southeast (United States)

Notable Investments: Benefit Solutions, LearnVest, Edo Interactive

Submit Pitch/ Contact: Link

3. Gen Cap America


Based in Nashville, Gen Cap America (GCA) partners with management teams seeking investment through buyouts or recapitalizations. GCA targets middle to lower middle-market businesses with revenues ranging from $10 to $200 million. Their investments primarily focus on privately held companies or divisions of larger corporations with proven track records and strong management. GCA provides capital and strategic support to fuel growth while allowing owners to maintain operational control.


Founding Year: 1988

Investment Range: $10M - $200M

Stage: Middle Market

Sector: Manufacturing and distribution sectors, and also in basic service companies with strong market shares in focused niches

Investment Geography: Tennessee 

Notable Investments: Aquasol Corporation, Lab Products, Frontier Packaging (Tukwila), Eastern Business Forms, TFM Services

Submit Pitch/ Contact: Link

4. SSM Partners


SSM focuses on investing in growing software and tech service companies, especially in B2B and healthcare. They've been doing this for over 20 years, working closely with business owners and teams to help them grow. They invest between $8 to $30 million and offer support throughout the company's growth journey.


Founding Year: 1973

Investment Range: $10M - $30M

Stage: Growth/Expansion 

Sector: Software and tech-enabled services across B2B & healthcare

Investment Geography: United States, Canada

Notable Investments: Mnet Health, KEEPS Corporation, Apixio, Revel, NovuHealth

Submit Pitch/ Contact: Link

5. Innova Memphis


Innova invests in fast-growing startups in biosciences, technology, and agriculture. They focus on helping new businesses succeed from the start. They work closely with entrepreneurs, investing in areas that matter locally, to make sure the startups thrive in the long run. They use their industry know-how to support promising ventures and aim for big returns.


Founding Year: 2007

Investment Range: Undisclosed 

Stage: Pre Seed, Seed, Early

Sector: High-growth companies in the Biosciences, Technology, and AgTech fields

Investment Geography: Tennessee

Notable Investments: ACT, SixFix, Coursicle, Sigma0

Submit Pitch/ Contact: Link

6. Council Capital


Council Capital invests in healthcare businesses. They focus on companies that want to grow in healthcare services and IT, aiming to make healthcare better, cheaper, and more available. They invest between $5 and $50 million in revenue and support entrepreneurs. They care about results, growing companies, and personal growth. They want to be the top choice for healthcare entrepreneurs and investors who want to make a difference in the industry.


Founding Year: 2000

Investment Range: $5M - $50M

Stage: Early Growth, Growth

Sector: Healthcare, Healthcare IT

Investment Geography: Tennessee 

Notable Investments: Accuro Solutions, Alivia Analytics, EVault, Lancope

Submit Pitch/ Contact: Link

7. Frist Cressey Ventures


First Cressey Ventures is a company that invests in healthcare and well-being. They don't just give money, they also give advice to help businesses succeed and make a difference.


Founding Year: 2016

Investment Range: $10M - $50M

Stage: Early, Seed

Sector: Healthcare 

Investment Geography: United States

Notable Investments: Klara, Aspire Health, Stratasan

Submit Pitch/ Contact: Link

8. Mountain Group Capital


Mountain Group Partners is a venture capital firm in Nashville. They focus on investing in early-stage companies in Life Sciences and Disruptive Technology. With lots of experience, they've supported over 60 companies. They're known for getting involved in their investments to help new technologies succeed. They make sure their interests and their investors' interests are aligned for success.


Founding Year: 2002

Investment Range: $5M - $10M

Stage: Early, Late, Seed

Sector: Life Sciences, Agriculture Technology, Diagnostics, Healthcare Technology, Business Technology, Drug Development 

Investment Geography: United States

Notable Investments: Myomo, Castle Biosciences, G1 Therapeutics

Submit Pitch/ Contact:

9. NueCura Partners


NueCura Partners, founded by experienced healthcare professionals, specializes in angel investments within the healthcare sector. With a focus on the $2.8 trillion U.S. healthcare industry, the company capitalizes on market disruptions and emerging trends to revolutionize healthcare delivery and payment systems. Affiliated members have the autonomy to choose their investment opportunities, guided by NueCura's mission to identify and support companies driving transformative changes in healthcare.


Founding Year: 2013

Investment Range: $1M - $5M

Stage: Early

Sector: Healthcare

Investment Geography: United States

Notable Investments: LeanKit, Bivarus, Expression Health Analytics

Submit Pitch/ Contact: Link

10. Altitude Ventures


Altitude Ventures is a venture capital firm focusing on early-stage healthcare startups. They provide financing to companies developing healthcare services and technology. Leveraging their industry knowledge, connections, and investment experience, Altitude Ventures aims to support entrepreneurs and investors in improving the healthcare system.


Founding Year: 2012

Investment Range: $7M (avg.)

Stage: Early, Seed

Sector: Healthcare, Technology 

Investment Geography: United States

Notable Investments: Nest Collaborative, Doctivity Health, itiliti Health, Opya, Spiras Health, Federation Bio, 7 Springs Orthopedics

Submit Pitch/ Contact: Link

FAQ (Frequently Asked Questions)

Q: What is the minimum amount for a VC fund?

A: 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.

Q: What is the largest VC fund in the US?

A: The largest VC firm in the United States is Andreessen Horowitz (a16z), with assets under management totaling $35 billion. They're in California and started in 2009. They put money into different kinds of companies, like tech and healthcare. Some famous companies they've invested in are Facebook and Airbnb.

Q: Do VC firms pay well?

A: Venture capital usually pays better than corporate development but not as much as private equity and hedge funds. At big VC firms, associates without an MBA can make $150K to $200K, while those with an MBA might rake in $200K to $250K. You might also ask, 'Do startups pay well?' Here's your answer.

Q: How many VC firms fail?

A: According to experts at The National Venture Capital Association, they believe that around 25% to 30% of startups supported by VC funding end up failing.

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.

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