Groove Capital

Groove Capital Research Overview Groove Capital is a Minneapolis, Minnesota-based early-stage venture fund, self-described as "Minnesota's First Check Fund." Founded in 2020 and launched in 2021, Groove Capital has backed nearly 100 companies over its first five years across Funds I, II, and now Fund III. The firm uniquely combines a traditional venture fund structure with Groove Investment Group, an active angel network, allowing it to co-invest alongside individual accredited investors at the pre-seed and seed stages. Investment Thesis Groove Capital's investment philosophy is centered on three beliefs: Every founder deserves an equal opportunity to scale their business. Great teams with the ability to capture compelling market opportunities can be found anywhere in Minnesota—and increasingly in neighboring ecosystems. Capital combined with meaningful mentorship and network access dramatically increases a startup's likelihood of success. The firm targets companies that demonstrate: a market thesis, a minimal viable product, an active sales pipeline, a proven ability to execute, and extreme resilience. Groove explicitly avoids pre-product concepts. Groove's key differentiators: Leads pre-seed deals (does not follow) Targets ~50 investments per fund (high-volume, diversified portfolio) Surrounds investments with additional capital from the Groove Investment Group angel network under the same term sheet ~90% of fund capital stays in Minnesota-based startups Sector Focus While explicitly industry-agnostic, Groove Capital favors verticals that benefit from Minnesota's dense resource networks: Healthcare & Medical Devices : Largest portfolio segment — 25+ companies in digital health, medtech, and medical devices Enterprise SaaS : Horizontal software tools, workflow automation, and vertical SaaS Ag Tech : Leveraging Minnesota's agricultural heritage and supply chain Food & Beverage : CPG, foodtech, specialty food brands Fintech & Insurance : Payments, financial services, and insurtech Clean Energy & Climate : Biomass conversion, PFAS remediation, and sustainable materials EdTech : Digital learning tools for K-12 and professional development Sports & Fitness : Consumer apps, sports analytics, fitness platforms Biotech & Life Sciences : Diagnostics, genomics, and bioprocessing Stage Focus Groove Capital focuses on Pre-Seed and Seed stages , with a strong preference to lead deals. They want companies past the concept stage — a working MVP is required. They do not typically invest at Series A or beyond. Check Size Not publicly disclosed. Based on their high-volume strategy (~50 investments per fund) and positioning as a first-check pre-seed fund, initial investments are estimated to be modest in size. Co-investment from the Groove Investment Group angel network is added on the same term sheet, increasing total round capacity. Investment Process Groove runs a structured eight-step process: Application submission Team review (typically ~1 week) Full pitch presentation Due diligence (with subject matter experts) Investment offer Investment acceptance Co-investment round through Groove Investment Group Signing and closing Regular "office hours" are available for founders not yet ready to apply (not a pitching session). Warm introductions are not required — cold applications accepted through the website. Portfolio Highlights As of mid-2026, Groove Capital has backed nearly 100 companies across multiple funds: Healthcare & Medical Devices : Nice Healthcare, Itiliti Health, Reema Health, WalkWise, Pops, DOCSI, Q-Rounds, Sobrynth, Ladder Health, VOCxi, Bloom Standard, AcQumen Medical, CoraVie Medical, Pevla Health, and others Enterprise SaaS : Parabol (agile meetings), ProsperStack (retention SaaS), Tavolo, Pennant, We Sparkle, Science on Call, Simulacra, DemoHop, and others Fintech/Insurtech : Tandem, Kaleidoscope, 5x5 Insurance, Vertical Insure, Controllr, Onsetto, Agro Centra Food & Beverage : Nordic Waffles, Boozy, Maazah, All Clean Food, Kadeya, Bim Bam Boo, Opsi AgTech : CropConex, Vireo AG, Fractal, Borde, SCO2 Clean Energy : Carbon Bridge, Carba (biomass to carbon), Claros Technologies (PFAS removal) Biotech : Canomiks, LEAH Labs, Sarcio, Organicin Scientific Sports : Adapt Fitness, Refr Sports, Gametime Hero, Local Sports Network, TeamGenius Notable recent investments (cited in January 2026): Maxwell Labs (St. Paul) — data center energy and water efficiency technology Claros Technologies (Minneapolis) — PFAS removal from waste streams Vocxi Health (St. Paul) — lung cancer detection via exhaled breath GUDEA (Minneapolis) — AI detection of inauthentic social media content Carba (Minneapolis) — biomass conversion to carbon for landfill remediation Team Groove Capital is led by a core team of seven: Reed Robinson , Partner & Founder: Co-founder of startup accelerator Beta; named to Twin Cities Business Magazine's "100 People to Know" (2019) and Minneapolis/St. Paul Business Journal's "(Real) Power 50" (2017); MBA from University of Minnesota Carlson School of Management. Lead thought leader on Minnesota's innovation ecosystem. Mickayla Rosard , Partner: Leads diversity and inclusion investment initiatives including the MN Women's Investment Collective. Active blog contributor on investment themes. Prentice Keller , Partner: Partner-level investor active in deal sourcing and portfolio support. Emmet Byron , Principal: Manages founder office hours, deal pipeline, and first-contact for founders. Emily Kist , Operations Manager: Manages firm operations and LP communications. Gwen Regenold , Analyst: Investment analysis and research; active blog contributor on founder topics. James Calubayan , Brand Specialist: Manages Groove Capital brand and marketing. The team is surrounded by an advisory network of successful founders, corporate executives, community leaders, technology experts, and venture partners who assist in diligence, portfolio support, and sourcing. Decision Process & Timeline Groove operates as a partnership with three partners (Robinson, Rosard, Keller) making investment decisions. The typical process runs 1–4 weeks from initial application to decision. They do not require warm introductions — cold applications accepted. Geographic Focus Primarily Minnesota (~90% of fund capital deployed in Minnesota-based startups). Exceptions for compelling startups in neighboring ecosystems (upper Midwest region). Headquartered in Minneapolis, MN. Fund History Fund I : Launched 2021 Fund II : Completed Fund III : Currently raising from accredited investors (as of late 2025/early 2026); targeting approximately 50 investments The Groove Investment Group angel network (accredited investor LPs) co-invests alongside the fund on the same term sheet, increasing total capital deployed per company.