Minnesota firms raked in venture capital in first half of 2016

Venture capitalists from around the country invested $15.3 billion in 961 deals in the second quarter, according to the MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Asssociation, based on data provided by Thomson Reuters.

For the tenth consecutive quarter, venture investment into "innovative" startup companies has suprassed $10 billion, helped by the fact that we hit the ninth straight quarter where 10 or more companies raised mega rounds of $100 million or more, according to PwC.

In Minnesota, seven companies across several industries raised $172.9 million.

"In the first six months of the year, Minnesota is up about 49 percent from last year and last year was a strong year, the second highest total year since the MoneyTree report started in 1995," said Mark Scholtes, a Minneapolis-based PwC partner who analyzes the national data. "The first two quarters of this year are continuing that trend.

"We're at $173 million compared to $116 million last year[through June 30]. There was balance among industries, including medical devices, health care services, energy, financial services…and that's an indicator of a strong environment. Minnesota used to be [mostly about] medical devices. I see positive trends."

Minnesota companies infused with venture capital from firms that invest in emerging companies, often before they sell stock to the public or are acquired by private equity firms or larger operating companies, included TenKsolar ($25.2 million), Zipnosis ($14 million), and Bite Squad ($5 million).

Venture capital raising, like the brisk pace of the business-merger market, generally is regarded as a harbinger of a solid economy, as acquirers and investors see long-term growth and sellers seek to lock in good prices for their stocks.