In This Economy?!
(Yes, venture capital is available in Iowa.)
Hi there! I’m Kaylee Williams, Investment Director at InnoVenture Iowa, and I’m here to tell you something you might already know: raising capital for your startup is hard work.
In sales, rejection is both common and necessary - and have no doubt, raising capital for your startup is selling. Learning to effectively metabolize that rejection is key to your success.
It’s natural to question the availability of capital and supportive resources, especially in Iowa. We’re a small state, we don’t have the critical mass you’ll see in places like San Francisco or Boston - but I'm here to assure you that not only is venture capital accessible in Iowa, it’s thriving. There are more programs, funding opportunities and networking events for founders today than there were even five years ago.
A Flourishing Venture Capital Scene
Iowa's venture capital ecosystem has seen significant growth, with several key players contributing to this dynamic environment:
InnoVenture Iowa Fund: As the state's first publicly funded venture capital fund, InnoVenture Iowa manages a $40 million fund dedicated to Seed and Series A financing. Our mission is to support innovative startups that have the potential to drive economic growth within the state.
Next Level Ventures: Based in Des Moines, Next Level Ventures manages over $400 million in assets across a diverse portfolio of more than 45 companies. They recently announced the launch of their third fund, focusing on investing in Iowa startups poised for scaling.
ManchesterStory Group: ManchesterStory is a VC fund that focuses on healthtech, fintech and insurtech startups.
AgVentures Alliance: This fund is focused on seeking opportunities in food and agriculture investments within 5 hours drive from Mason City, Iowa.
Iowa Economic Development Authority (IEDA): The IEDA offers programs like the Innovation Acceleration Fund, designed to promote the formation and growth of businesses engaging in technology transfer, thereby accelerating market development and leveraging private investment.
AgStartup Engine: ASE is an ag-tech fund focused on equipping entrepreneurs who focus on solving hard problems in the agriculture industry with the tools needed to build successful, industry-changing solutions.
Renew Rural Iowa: This is an innovative program administered by Iowa Farm Bureau designed to help increase the enterprise value of new and existing businesses in Iowa’s small towns through business education, mentoring, and the financial resources to help businesses grow.
Ames Seed Capital: This is an angel group focused on Story County Iowa early-stage startup companies with business plans and proof of concept determined.
ISA Ventures: a venture capital fund (with corresponding platform services) that invests in Iowa-based startup companies. ISAV helps companies grow through multiple stages, from early-stage startups to more established businesses.
Supportive Initiatives and Accelerator Programs
Beyond venture funds, Iowa provides various initiatives to foster a conducive environment for startups:
JPECs & Venture School: The state features five (5) John PappaJohn Entrepreneurial Centers, each with a unique offering to help entrepreneurs in their region start (or scale) their businesses.
Maple Studios: With locations in West Des Moines and Davenport, Maple Studios is a startup studio for industrial technology start-ups and early-stage companies.
University-Led Funding Opportunities: Institutions like the University of Iowa offer gap funding to support innovative faculty and staff in developing health-related technologies, bridging the early-stage funding gap.
Global Insurance Accelerator: The GIA offers a 12-week, hybrid accelerator program for early-stage insurtech startups that are building disruptive products and technologies in the insurance sector.
BrokerTech Ventures: BTV is an accelerator program and convening platform that helps startups develop and scale insurance technology. This program is managed by Holmes Murphy in Des Moines.
Navigating the Ecosystem
You can grow your startup in Iowa - and for entrepreneurs ready to build, the resources and capital are here for you. If you're a founder seeking funding or an investor looking to be part of Iowa's vibrant startup ecosystem, now is the time to engage.
If you’d like to learn more about the resources available to you here in Iowa, check out the Resource Navigator through Iowa SourceLink or the Iowa Innovation Dashboard.