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Bluestem Capital

North America, South Dakota, United States, Sioux Falls

Description

Bluestem Capital is a private equity firm headquartered in Sioux Falls, South Dakota, specializing in providing capital solutions to middle-market companies. The firm's core investment strategies include recapitalizations, management buyouts, and mezzanine financing. Unlike traditional venture capital firms that focus on early-stage startups, Bluestem Capital targets established businesses, aiming to support growth, facilitate ownership transitions, or optimize capital structures. Their regional focus primarily extends to companies located in the Midwest, leveraging their deep understanding of the local economic landscape.

The firm typically seeks to make equity investments ranging from $5 million to $25 million. This substantial check size indicates their commitment to providing meaningful capital infusions for their portfolio companies. Bluestem Capital is particularly interested in businesses with enterprise values generally falling between $20 million and $100 million, signifying their focus on mature, revenue-generating entities rather than nascent ventures. Their investment approach is characterized by a partnership model, working closely with management teams to drive operational improvements and strategic growth initiatives.

Bluestem Capital's portfolio spans a diverse range of industries, including manufacturing, business services, distribution, and consumer products. The firm emphasizes long-term value creation, often participating in situations where a company requires capital for expansion, acquisitions, or shareholder liquidity events. Their expertise in structuring complex financial transactions, combined with a hands-on approach, positions them as a strategic partner for companies navigating various stages of their corporate lifecycle.

Investor Profile

Bluestem Capital has backed more than 28 startups, with 1 new investments in the last 12 months alone. The firm has led 11 rounds, about 39% of its total and boasts 5 exits across its portfolio.

Investment Focus Highlights

  • Concentrates on Series Unknown, Series B, Series A rounds (top funding stages).
  • Majority of deals are located in United States, Israel.
  • Strong thematic focus on Health Care, Medical, Advanced Materials.
  • Typical check size: $5M – $25M.

Stage Focus

  • Series Unknown (32%)
  • Series B (29%)
  • Series A (21%)
  • Series C (14%)
  • Series D (4%)

Country Focus

  • United States (96%)
  • Israel (4%)

Industry Focus

  • Health Care
  • Medical
  • Advanced Materials
  • Developer Platform
  • Robotics
  • Pharmaceutical
  • Medical Device
  • Software
  • Biotechnology
  • Analytics
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FAQ

Frequently Asked Questions

Learn who this investor regularly partners with—both firms and angels—and explore their latest activity.

Who does Bluestem Capital frequently co-invest with?

Baird Capital
North America, Wisconsin, United States, Milwaukee
Co-Investments: 2
Sequoia Capital
North America, California, United States, Menlo Park
Co-Investments: 2
SBI Japan-Israel Innovation Fund
Asia, Tel Aviv, Israel, Tel Aviv-yafo
Co-Investments: 2
KC
North America, California, United States, San Diego
Co-Investments: 2
Endeavour Vision
Europe, Geneve, Switzerland, Geneva
Co-Investments: 2
PrairieGold Venture Partners
North America, South Dakota, United States, Sioux Falls
Co-Investments: 5
Visionary Venture Fund
North America, California, United States, Aliso Viejo
Co-Investments: 5
Maverick Ventures
North America, California, United States, San Francisco
Co-Investments: 2
Arboretum Ventures
North America, Michigan, United States, Ann Arbor
Co-Investments: 2
Edgewater Funds
North America, Illinois, United States, Chicago
Co-Investments: 3

What are some of recent deals done by Bluestem Capital?

Orasis Pharmaceuticals

Ponte Vedra, Florida, United States

Orasis Pharmaceuticals is an ophthalmic pharmaceutical company that develops eye drops for the treatment of presbyopia.

Clinical TrialsHealth CareMedicalPharmaceutical
Series DOct 8, 2024
Amount Raised: $68,000,000
Lentechs

Columbus, Ohio, United States

Lentechs is a medical device company that develops a novel soft bifocal contact lens.

BiotechnologyHealth CareMedical Device
Series UnknownOct 24, 2023
Amount Raised: $6,000,000
Virtual Incision

Lincoln, Nebraska, United States

Virtual Incision develops a miniaturized surgical robotic support device with a focus on colon resection.

Advanced MaterialsDeveloper PlatformHealth CareRobotics
Series CSep 19, 2023
Amount Raised: $30,000,000
Neurolens

Coppell, Texas, United States

Neurolens designs prescription lenses that add a contoured prism to bring the eyes into alignment.

EyewearHealth CareMedicalNeuroscienceSoftware
Series UnknownSep 12, 2022
Amount Raised: $67,642,795
Virtual Incision

Lincoln, Nebraska, United States

Virtual Incision develops a miniaturized surgical robotic support device with a focus on colon resection.

Advanced MaterialsDeveloper PlatformHealth CareRobotics
Series CNov 30, 2021
Amount Raised: $46,000,000
Zerigo Health

La Jolla, California, United States

Clarify Medical is a developer of a handheld medical device used to treat psoriasis, eczema, and vitiligo .

BiopharmaBiotechnologyHealth CareHealth DiagnosticsMedicalMedical DeviceTherapeutics
Series BOct 21, 2021
Amount Raised: $43,000,000
Sydnexis

Del Mar, California, United States

Sydnexis is engaged in the development of a proprietary treatment for pediatric progressive myopia.

ManufacturingPharmaceutical
Series BAug 10, 2021
Amount Raised: $45,000,000
Orasis Pharmaceuticals

Herzliya, Tel Aviv, Israel

Orasis Pharmaceuticals develops a corrective eye drop to treat presbyopia as an alternative to reading glasses.

Clinical TrialsHealth CareMedicalPharmaceutical
Series CSep 10, 2020
Amount Raised: $30,000,000
TearClear

Boston, Massachusetts, United States

TearClear is a pharmaceutical company that specializes in providing a disruptive eye health technology.

Chemical EngineeringMedical DevicePharmaceutical
Series BAug 11, 2020
Amount Raised: $22,000,000
Virtual Incision

Lincoln, Nebraska, United States

Virtual Incision develops a miniaturized surgical robotic support device with a focus on colon resection.

Advanced MaterialsDeveloper PlatformHealth CareRobotics
Series BJan 8, 2020
Amount Raised: $20,000,000