MINNEAPOLIS (AP) -- Start-up companies in Minnesota, Wisconsin and Iowa attracted more than $500 million in investments in the third quarter, including money from corporations, investment bankers and individuals, a survey shows.
The Profits Journal Grant Thornton Private Equity Survey released this week found $510.8 million was invested in 70 private companies in the three states during the quarter ended Sept. 30.
Minnesota received the largest portion of the investments, $416 million, followed by Wisconsin with $73.7 million and Iowa with $21.1 million.
The study found that venture capitalists backed only 67 percent of the investments made in regional companies during the quarter. The remainder of the funding was provided by individuals, corporations and brokerages. Those hidden angels provided $84.8 million to 24 companies.
The purpose of the survey was to more accurately measure investments in emerging private companies by including sources other than venture capitalists. Recent public discussions about whether the region is getting enough support for its new companies have relied on data from quarterly venture capital surveys.
The debate over whether Minnesota start-ups were losing out in the race for venture capital money began building last spring, when University of Minnesota President Mark Yudof and Carlson School Dean David Kidwell painted a dire picture of Minnesota's competitive position.
Brainerd Dispatch ©2013. All Rights Reserved.