Report: $38M in Funding for Tech Start-ups in Q1

According to TECHdotMN, more than 20 Minnesota-based start-ups received a combined $38 million in the first quarter-led by 8thBridge and Cima NanoTech, which collectively raised $25 million.

Funding for Minnesota-based tech start-ups is not as scare as many think, according to a report released Monday by TECHdotMN.

According to TECHdotMN-a local technology Web site-more than 20 tech companies in the state together received $38 million in the first quarter.

The funding was led by Minneapolis-based 8thBridge, Inc., and St. Paul-based Cima NanoTech, which collectively raised $25 million.

8thBridge-which creates social commerce channels by integrating social networking, advertising, and e-commerce-received $10 million, and Cima NanoTech-which specializes in the production of nanoparticle-related printed electronic materials-received $15 million.

The remaining 19 start-ups raised a combined $13 million, for an average round of $675,000, TECHdotMN reported.

Those start-ups, along with the dollar amount each received, are:

  • 3d Sports Technology-$50,000
  • 7 Ventures-$1.25 million
  • Argos Risk-$96,000
  • AsystMe-$50,000
  • Cloud Sports Data-$1.2 million
  • Conservis Corporation-$75,000
  • For My Children-$25,000
  • LeagueSafe-$115,000
  • Packet Power-$250,000
  • Seeonic-$200,000
  • GeaCom-$817,000
  • A-Vu Media-$200,000
  • Boost Information Systems-$1.5 million
  • mPay Gateway-$716,000
  • RedBrick Health-$5 million
  • Good Connective-$200,000
  • Midart Communications-$270,000
  • Rapid.IO-$1.1 million
  • Inveni-$283,000

“Things are not as bad as the legacy media makes them out to be,” TECHdotMN said in the report.

The angel investor tax credit spurred $3.3 million in investments that went to 10 companies in the first quarter.

The angel tax credit program was launched in 2010 and gives a 25 percent tax break to individuals and investment funds that provide as much as $4 million in seed money to businesses focused on high technology or new proprietary technology.

Click here to see the complete report from TECHdotMN.