Midwest-Based Arthur Ventures Raises $155 Million For 2 New Funds

By Amit Chowdhry ● December 20, 2019
  • Venture capital firm Arthur Ventures announced it raised $155 million for two new funds to invest in the fastest-growing B2B software companies outside of Silicon Valley

Arthur Ventures — a venture capital firm based in Minneapolis and Fargo — announced it raised $155 million for two new funds. The money will be used for continuing to invest in the fastest-growing B2B software companies outside of Silicon Valley.

Of the $155 million, $125 million will be for a “core fund” to invest in new firms. And the other $30 million will be used for putting in additional investments into firms in which it already owns a stake.

This fundraising round — which is the third in the firm’s history — relies on a different group of investors from those in previous rounds. The first fund was $45 million in 2013. And the second fund was $72.5 million in 2017. Now the firm has $270 million in assets under management.

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Arthur Ventures general partner Patrick Meenan told Star Tribune that the prior funds will be used largely of individual investors. And these funds are 75% institutional investors.

Arthur Ventures’ partners including Meenan, James Burgum, and Ryan Kruizenga spent about 5 months to raise the money for the new funds.

Some of Arthur Ventures’ portfolio companies include Nomics, Zipnosis, Total Expert, Flipgrid (acquired by Microsoft last year), Drip (formally called Leadpages), and When I Work.