Groove Capital

Groove Capital is an early-stage venture capital firm strategically based in Minneapolis, Minnesota, with a dedicated focus on fostering the growth of startups within Minnesota and the broader Upper Midwest region. Established with a clear mission to cultivate a robust local entrepreneurial ecosystem, the firm provides crucial capital, strategic guidance, and extensive network access to promising nascent companies. Their investment philosophy centers on identifying innovative teams and disruptive technologies that have the potential for significant impact and scalability, thereby contributing to the economic vitality of the region.

The firm primarily targets pre-seed and seed-stage companies, offering initial investments that typically range from $100,000 to $250,000. This strategic check size is designed to provide essential early funding while also allowing for follow-on investments as portfolio companies achieve key milestones and demonstrate further growth potential. Groove Capital successfully closed its inaugural fund at $10 million in 2021, a significant milestone that underscored its commitment to the regional startup community and provided the necessary capital base to execute its investment strategy. They actively seek out companies that are not only innovative but also possess strong leadership and a clear path to market.

Beyond capital deployment, Groove Capital distinguishes itself through its hands-on approach, offering mentorship and connecting founders with a valuable network of experienced entrepreneurs, industry experts, and potential partners. This comprehensive support system is integral to their model, aiming to equip startups with the resources needed to navigate the challenges of early growth and scale effectively. By concentrating its efforts on the Upper Midwest, Groove Capital plays a vital role in strengthening the regional innovation landscape, helping to retain local talent and attract new ventures, ultimately contributing to a more dynamic and interconnected startup community.