Groove Capital supports small teams with high potential, who have detailed plans for achieving larger, later stage milestones. We’re interested in bold ideas backed by action. Investments will target companies with a/an:
Market thesis
Minimal Viable Product
Sales pipeline
Proven track record to execute upon a plan
Ability & determination to persevere
The Groove Capital fund will be investing in many industries, but will favor the verticals that can be supported by Minnesota’s most robust resource networks; think ag tech, food, healthcare, education, energy, enterprise SaaS, financial services, medical device, retail, and sports & fitness.
As your venture partner, we will provide you with capital along with introductions to angel investors and advisors, increasing your likelihood of success.
Investment Criteria
Early Stage
Leading or joining Pre-Seed and Seed Stage funding rounds
Minimal Viable Product
Past Concept Stage, with a working prototype or proof of concept
Drive to Win
Evidence of an ability to expand product or service offerings and secure market share, favoring those with an unfair advantage
Extreme Resiliency
A clear purpose and demonstrated perseverance to meet or exceed goals
Minnesota Based
Focused on companies headquartered or operating in Minnesota, but will make an exception for compelling startups located in neighboring ecosystems
Industry Agnostic
We invest in many industries, but favor those verticals that can be supported by Minnesota’s most robust resource networks
Looking for an Investment?
Groove Capital is actively investing. Please send us your information, and we will get back to you shortly.
Investment Process
Application
We'll ask you to provide high level information to help us understand if you meet our basic investing criteria.
Step 1
Step 2
Team Review
We’ll review your materials, ask additional questions, and determine if we’d like to see a full pitch. This process usually takes a week, but can vary depending on when all materials are submitted.
The Pitch
This is your time to shine! It’s also a chance to meet your team and see you in action. Following the pitch, we'll turn around a decision shortly after your presentation.
Step 3
Step 4
Due Diligence
You’ll be asked to share detailed information about your company. Additionally, we may pull in other subject matter experts to help evaluate your company.
Investment Offer
We’ll work together to ensure that we find a deal structure that aligns incentives for both your company and Groove; this should be win-win for everyone.
Step 5
Step 6
Investment Accepted
We finalize the investment documents and begin onboarding you as a portfolio company.
Co-Investment
For companies that choose (most do), Groove immediately shares the deal with our Limited Partners and Groove Investment Group, an angel network, allowing others to commit additional funding to your company.
Step 7
Step 8
Sign and Close the Deal
Additional co-investment funding is typically added to Groove’s investment using the same term sheet, leaving your cap table nice and tidy.
Not Yet Ready to Apply?
Groove hosts regular office hours to answer any questions you might have about us, the investment process, areas of interest, etc. This is NOT an opportunity to pitch, it's simply a space for helping you better understand what to expect.
