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Venture and Angel/seed funds serving Iowa

The following guide is divided into two lists:

Venture Funds Serving Iowa

Iowa Based Venture Funds

AAVIN Equity Partners

1245 1st SE
Cedar Rapids, IA 52402
Managers: James D. Thorp, Thies Kolln, Kevin Mullane, Kirk Kallberg, Paul Rhines, Eric Hender, David Schroder
Phone: 319.247.1072
Website: www.aavin.com
Preferred geography: Middle America but will invest nationally
Sector preference: None
Preferred stage: Buyouts/Recaps/Expansion financings in companies with at least $1.5 million in cash flow
Preferred investment size: $2-$4 million initially. Can go up to $6 million
Preferred role: Lead investors but will co-invest. Active on board. Control or minority.
Status: Actively seeking deals @ January 2017

Equity Dynamics Inc.

2116 Financial Center, 21st Floor
Des Moines, IA 50309
Managers: John Pappajohn, Matt Kinley
Phone: 515.244.5746
Website: www.pappajohn.com
Contact: Matt Kinley -
Sector preference: Primary areas of investment are high tech and medical.
Preferred stage: Investment is available in all stages of companies with substantial growth opportunities.
Status: Actively seeking deals @ January 2015

Next Level Ventures

Des Moines, IA
Managers: Craig Ibsen, Duane Harris, Scott Hoekman, Ryan Gerhardy
Phone: 515.705.0017
Website: www.nextlevelvc.com
Twitter: @nextlevelvc
Email:
Preferred geography: Iowa
Sector preference: Innovative businesses
Preferred stage: Typically our target opportunities will have $1 million or more in sales
Preferred investment size: $1 million - $4 million per company
Preferred role: We prefer to lead, however, we will follow/co-invest with other capital providers. We like to actively participate in our portfolio by taking board seats. We typically take a minority position.
Other: We focus on companies with scalable models, growing markets, and strong management teams.
Status: Actively seeking deals @ January 2015

Rural Vitality Funds

Iowa Farm Bureau Federation
5400 University Avenue
West Des Moines, IA 50266
Phone: 515.225.5455
Website: www.renewruraliowa.com
Twitter: @ruraliowa
Managers: Adam Koppes, Dave Sengpiel
Contact: Adam Koppes, email:
Preferred geography: Iowa
Sector preference: AgTech, BioTech, Advanced Manufacturing, and Software
Preferred stage: Seed, Series A
Preferred investment size: $250,000 - $2.5 million
Preferred role: Lead
Other: Renew Rural Iowa is an initiative of the Iowa Farm Bureau that brings business Education, Mentoring and Financing to Iowa’s rural communities. The business Financing comes from the Rural Vitality Funds, a partnership between the Iowa Farm Bureau, Wellmark and CMA Ventures.
Status: Actively seeking deals @ January 2015

Iowa Corn Opportunities, LLC

5505 NW 88th Street #100
Johnston, IA 50131
Contact: Brian R. Jones
Phone: 515.225.9242
Website: www.iowacornopportunities.com
Preferred geography: United States
Sector preference: Agriculture, Corn industry preferred
Preferred stage: Seed, Series A
Preferred investment size: $250,000 - $500,000 per company
Preferred role: Sometimes take the lead but prefer follow-on opportunities where we can be active/strategic
Status: Actively seeking deals @ January 2015

Midwest Growth Partners

7049 Vista Drive
West Des Moines, Iowa 50266
Phone: 515.421.4800
Website: www.mgpfund.com
Managing Directors: John Mickelson, Mike Taylor, Dustin Thomas; Operating Partners: Russ Taylor, Joe Greving; Chairman/Senior Advisor: Jim Fogt
Preferred geography: Upper Midwest focus (IA, NE, MN, MO, SD, ND, IL, WI, KS and CO)
Sector preference: Manufacturing, Food & Ag, Distribution and Logistics, Business Services
Preferred stage: Late stage/mature
Preferred investment size: $500,000 to $5 million in aggregate per company
Preferred role: Lead or Partner, Active, Significant Minority or Control
Status: Actively seeking deals @ January 2015

Regional Venture Funds

Tonka Bay Equity Partners

301 Carlson Parkway, Suite 325
Minnetonka, MN 55305
Managers: Cary Musech, Peter Kooman, Steve Soderling, Shane Slominski
Phone: 952.345.2030
Website: www.tonkabayequity.com
Preferred geography: United States
Sector preference: Companies in the highly-engineered manufacturing, value-added distribution and business services sectors
Preferred stage: Growth-oriented companies to support acquisitions/buyouts, shareholder liquidity events, recapitalizations, and growth and expansion
Preferred investment size: $10 million - $15 million per company
Preferred role: Buyouts/control
Status: Actively seeking deals @ January 2015

LFE Capital

60 South Sixth Street, Suite 2320
Minneapolis, MN 55402
Managers: Leslie Frecon, Kellie Bauer, Duane Harris
Contact: Laurent Frecon –
Phone: 612.752.1820
Website: www.lfecapital.com
Preferred geography: Midwest, Northeast, Southeast
Sector preference: Consumer products, health, service companies. Overlying theme of health and wellness. Focus, though not a requirement, on businesses founded or led by women or target women.
Preferred stage: $5 million to $50 million of revenue
Preferred investment size: $2 million to $8 million
Preferred role: Active lead investor who will take minority or control positions. Will consider co-lead or minority investor roles under certain circumstances.
Investment target: Growth and expansion capital in the business services, consumer and health sectors.
Other: LFE Capital is a private equity fund manager that provides flexible financial solutions for companies with strong growth prospects. A relationship with LFE brings capital and an operations-oriented team who will dedicate the time and resources to build successful businesses.
Status: Actively seeking deals @ January 2015

OCA Ventures

351 W. Hubbard St., Suite 600
Chicago, IL 60654
Managers: Jim Dugan; John Dugan, Peter Ianello, Ian Drury, Dave Zyer, Bob Saunders
Phone: 312.327.8400
Website: www.ocaventures.com
Preferred geography: United States
Sector preference: Technology, Financial technology services & trading, Education technology, Healthcare technology, Consumer internet & mobile commerce
Preferred stage: Seed, Series A, Series B
Preferred investment size: $1 million -$4 million
Preferred role: Lead
Status: Actively seeking deals @ January 2015

Open Prairie Ventures/SWMF Life Science Fund

400 East Jefferson
Effingham, IL 62401
Managers: Jim Schultz, Pat Morand, Jason Wrone, Sam Hogg
Phone: 217.347.1000
Website: www.openprairie.com
Preferred geography: Agnostic, but prefer non-coastal
Sector preference: Agriculture technology, Medical devices
Preferred stage: Venture, Growth
Preferred investment size: $2 million to $5 million
Preferred role: Lead, Active, Minority
Status: Actively seeking deals @ January 2015

Petra Capital Partners

3825 Bedford Avenue, Suite 101
Nashville, TN 37215
Phone: 615.313.5994
Website: www.petracapital.com
Contact: Doug Owen, Principal – 615-313-5994
Preferred geography: United States
Sector preference: Business, Healthcare and Technology-enabled service companies
Preferred stage: Later-stage profitable companies generally with greater than $10 million of revenue and $1 million of EBITDA
Preferred investment size: $5 million - $20 million per company
Preferred role: Will lead or co-invest with others. Comfortable in a minority or control ownership position
Status: Actively seeking investment deals @ January 2015

Prolog Ventures

7701 Forsyth Boulevard, Suite 1095
St. Louis, MO 63105
Phone: 314.743.2400
Website: www.prologventures.com
Managers: Greg Johnson, Ilya Nykin, Brian Clevenger, John Steuart
Preferred geography: Agnostic
Sector preference: Healthy Living, Diagnostics, Research Tools, Nutrition, Healthy Life Style Apps, Technology for clean air, food and water
Preferred stage: Early or expansion
Preferred investment size: $300K - $1 million
Preferred role: Lead or follow
Status: Actively seeking investment deals @ January 2015

Stone Arch Capital

800 Nicollet Mall, Suite 1150
Minneapolis, MN 55402
Phone: 612.317.2980
Website: www.stonearchcapital.com
Managers: Charlie Lannin, Clay Miller
Preferred geography: Midwest-focused
Sector preference: Generalists – open to most sectors
Preferred stage: We invest in mature, positive cash flow companies
Preferred investment size: We like to deploy $10 - $20 million per company
Preferred role: We are generally lead, active and control investors
Status: Actively seeking deals @ January 2015

Angel/Seed Funds Serving Iowa

Plains Angels

c/o Business Innovation Zone
700 Locust St. Ste. 100
Des Moines, IA 50309
Managers: Mike Colwell, Tej Dhawan
Email: ,
Website: www.plainsangels.com
Other: The Plains Angels are a group of Midwest angel investors dedicated to providing outstanding financial returns to accreted angel investors while assisting early-stage growth companies by being an excellent source of funding and advice. We accomplish our objectives by providing a platform for our members to view and exchange information about investment opportunities in high potential, early-stage and emerging growth companies. Our members collaborate on due diligence but make individual investment decisions.
Status: Actively seeking deals @ January 2015

River Glen Private Capital

2600 Westown Parkway, Suite 346
West Des Moines, IA 50266
Manager: Matt Busick, Heather Welch Puri
Phone: 515.422.9040
Email:
Website: riverglencapital.com
Preferred geography: Iowa/Upper Midwest
Sector preferences: Bio-renewables (fuels, chemicals, building materials), agriculture tech (SaaS, seed/fertilizer, vaccines), healthcare (SaaS, medical devices)
Preferred stage: Seed/Early
Preferred investment size: $250,000 to $1 million
Preferred role: If seed, lead. If early/mid, follow. Active on board. Minority.
Status: Actively seeking deals @ January 2015

Iowa Seed Fund II, LLC

230 Second Street S.E., Suite 212
Cedar Rapids, IA 52401
Managers: Curt Nelson and staff of Entrepreneurial Development Center, Inc.
Phone: 319.369.4955
Email:
Website: www.stonearchcapital.com
Preferred geography: Iowa only
Sector preference: Balanced
Preferred stage: Pre-revenue to growth
Preferred investment size: $100,000 to $200,000
Preferred role: Any
Status: Actively seeking deals @ January 2015

North Iowa Venture Capital Fund II

John Pappajohn Business & Entrepreneurial Center
500 College Drive
Mason City, IA 50401
Manager: Tim Putnam
Phone: 641.422.4162 and 641.422.4111
Email:
Website: www.niacc.com/pappajohn
Preferred projects: North Central Iowa deals preferred, but not limited to region. Early stage, emerging and growth companies, and attractive acquisition opportunities.
Preferred investment size: $100,000 - $240,000 in direct equity or convertible debt financing.
Other: Submit investment information at: gust.com/organizations/north-iowa-venture-capital-fund/apply
Status: Actively seeking deals @ January 2015

Ag Ventures Alliance

2023 South Federal
Mason City, IA 50401
Phone: 641.494.2368
Website: www.AgVenturesAlliance.com
Managers: Jude Conway, Natalie Witschorik
Geographic preference: Within 5 hours of Mason City, IA.
Sector preference: Food and Agriculture
Preferred stage: Seed, Start-up
Preferred investment size: $50,000 to $500,000
Preferred role: Lead or follow, active, minority
Status: Actively seeking deals @ January 2015

Ames Seed Capital

Ames Economic Development Commission
1601 Golden Aspen Drive, Suite 110
Ames, IA 50010
Website: www.amesedc.com
Phone: 515.232.2310
Contact: Ron Hallenbeck -
Preferred geography: Ames County, Story County in Iowa
Sector preference: Biosciences, Information Technology, Animal Health, Technology-driven ideas.
Preferred stage: Early-stage start-up companies with business plans and proof of concept determined. The Fund’s investment in companies is not designed to liquidate current loans, debt to a family member or to buy a business from a family member
Preferred investment size: Investments will typically not exceed $200,000, with the average being $50,000 to $100,000. Some consideration to smaller investments at $25,000.
Preferred role: Follow-on as the business must demonstrate that it has secured additional and separate financing through other sources such as “family and friends”, founder and senior management personal investment, in addition to other funds and/or financial institution financing. Each opportunity is investigated to determine whether the Fund wants a controlling or minority interest. This determines the requirement for a board seat or board visitation rights.
Status: Actively seeking deals @ January 2015

Iowa Lakes Corridor Angels

Iowa Lakes Corridor Development Corporation
520 2nd Avenue East, Suite 2
Spencer, IA 51301
Website: www.lakescorridor.com
Managers: Brian Dalziel, Network Manager
Contact: Brian Dalziel - 712.264.3474 -
Geographic preference: Prefer Iowa deals but have invested out-of-state
Sector preference: Medical, Manufacturing, Information technology
Preferred stage: Seed to Growth
Preferred investment size: $100,000 to $10,000,000
Preferred role: Lead, follow, active, minority
Status: Actively seeking deals @ January 2015

Hyde Park Angels (HPA)

Managers: Peter Wilkens, Managing Director, Scott Hoekman, Member (in Iowa)
Website: www.hydeparkangels.com
Contact: www.hydeparkangels.com/apply-for-funding
Preferred geography: Based in Midwest (preferably Chicago), or located nationwide, as long as management team includes a graduate of the University of Chicago.
Sector preference: Innovative information technology, Business services, Industrial technology, Financial services, Consumer or industrial products, Healthcare services or technology (Note: Therapeutic and medical devices with large, multiple-round funding needs are typically not a good fit for Hyde Park Angels)
Preferred stage: Seed/angel and Series A/B
Preferred investment size: Initial investment size of $250,000 to $3 million
Preferred role: HPA has led deals and co-invested with other VCs and other angel groups. It has taken on active and passive roles. In all deals, HPA and its co-investors have been minority owners
Other criteria: Early-stage or early-growth companies, Strong management team, Large or rapidly growing market, Proprietary or innovative product or service that has scalable business model, Market-ready platform technology or product
Status: Actively seeking deals @ January 2015

Other Funding Sources

Bridgepoint Merchant Banking – Investment Banking

Bridgepoint Merchant Banking is a lower and middle market investment banking and private equity firm that serves clients over their corporate lifecycles by providing merger and acquisition and capital raising services. Bridgepoint’s principals have completed over $104 billion of M&A and capital raising transactions. Bridgepoint serves the upper Midwest from its locations in Des Moines IA, Lincoln NE and Denver CO.
Contact: Adam Claypool
Phone: 515.491.9009
Email:
Website: www.bridgepointmb.com

Preferred projects: Companies with at least $1mm of EBITDA and/or $10mm of revenue and growing. Industry focus is relatively broad: software, internet-enabled companies, manufacturing, distribution, business services and financial services companies.
Excluded projects: pre-revenue companies, companies that require FDA approvals for their technologies, real estate and project finance situations.

Wellmark Communities Venture Fund

The Wellmark Community Ventures Fund is a $5 million fund committed for investment in Iowa businesses. This fund is sponsored by Wellmark Blue Cross Blue Shield of Iowa and Equity Dynamics. Interested persons can apply through any John Pappajohn Entrepreneurial Center (JPEC) in Iowa. Typical funding is $10,000 to $100,000 in convertible debt financing. Applicant companies must be an Iowa-based, for-profit corporation. Ventures supported by the fund include technology, bio-technology, educational technology, advanced manufacturing, medical, and cutting-edge computer-related products or software.

For more information, contact any of Iowa’s JPECs:
University of Iowa JPEC – www.iowajpec.org
North Iowa Community College JPEC - www.niacc.edu/pappajohn
University of Northern Iowa JPEC - www.jpec.org
Iowa State University - www.isupjcenter.org
Drake University JPEC -