Top 10 VC Funds in Tennessee
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 |
Stages |
Founding Year |
|---|---|---|---|
|
Pharos Capital Group |
$25M - $50M |
Later (Buyout) |
1998 |
|
Claritas Capital |
$2M - $5M |
Early, Late, Private Equity |
2002 |
|
Gen Cap America |
$10M - $200M |
Middle Market |
1988 |
|
SSM Partners |
$10M - $30M |
Growth/Expansion |
1973 |
|
Innova Memphis |
Undisclosed |
Pre Seed, Seed, Early |
2007 |
|
Council Capital |
$5M - $50M |
Early Growth, Growth |
2000 |
|
Frist Cressey Ventures |
$10M - $50M |
Early, Seed |
2016 |
|
Mountain Group Capital |
$5M - $10M |
Early, Late, Seed |
2002 |
|
NueCura Partners |
$1M - $5M |
Early |
2013 |
|
Altitude Ventures |
$7M (avg.) |
Early, Seed |
2012 |
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.
Website: pharosfunds.com
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.
Website: claritascapital.com
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.
Website: gencapamerica.com
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.
Website: ssmpartners.com
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.
Website: innovamemphis.com
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.
Website: councilcapital.com
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.
Website: fcventures.com
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.
Website: mtngp.com
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: contact@mtngp.com
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.
Website: nuecura.com
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.
Website: altvc.com
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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