If you felt Minnesota’s startup funding slowed down last year, the numbers backed you up.

Minnesota companies raised $1.05 billion in venture capital in 2025, the state’s lowest annual total since 2017, according to the PitchBook-NVCA Venture Monitor data used for this analysis. That was a meaningful step down from the $1.75 billion raised in 2024.

But through the first nine months of 2026, the picture has improved. Minnesota startups have raised $1.18 billion across 124 deals, already exceeding last year’s funding total with a quarter still to go.

Behind those dollars are companies developing treatments for diabetes, destroying forever chemicals, helping employers verify workers and finding new ways to support agriculture. Many are names readers may not recognize. Their work deserves a closer look.

So does the broader region. Iowa has already more than doubled its 2025 funding total. Wisconsin companies are attracting investment for nuclear technology, healthcare and software. In North Dakota, founders are building businesses around ranching technology and agricultural research coming out of the state’s universities.

Here is where Minnesota and its neighbors stood at the end of September.

The clearest improvement is in dollars raised. Minnesota has already passed its full-year 2025 total by approximately $140 million.

If the fourth quarter matches the average of the first three, the state would finish 2026 at approximately $1.57 billion, about 50% above 2025. That is an illustration of the current pace, rather than a forecast. It would still leave Minnesota below its 2024 total, but represent a substantial recovery from last year.

Deal volume tells a steadier story. The 124 financings recorded through September put Minnesota on pace for about 165 deals, close to the 162 recorded in 2025.

More money is flowing into Minnesota companies, while the number of financing transactions is roughly on pace with last year.

Minnesota’s $1.18 billion is nearly twice the combined $625 million raised in Wisconsin, Iowa, North Dakota and South Dakota through September. Its 124 deals also approach those four states’ combined 130.

Source: PitchBook-NVCA Venture Monitor, Q3 2026. 

Iowa stands out. Its $309 million is already more than twice its $130 million total for all of 2025. North Dakota has also exceeded last year’s total.

Wisconsin and South Dakota remain below their full-year 2025 figures, with another quarter still to be counted. That comparison alone does not establish that their funding declined relative to the same period last year.

The gap with Illinois has also narrowed. Illinois startups raised $1.71 billion through September, approximately 1.4 times Minnesota’s total, compared with 2.5 times in 2025. Minnesota ranks 18th among states for venture dollars in the dataset, up from 24th for full-year 2025.

Some of the largest startup fundraises in Minnesota and its neighboring states this year went to companies whose names may be unfamiliar, but whose work could have substantial implications for healthcare, agriculture, manufacturing and everyday business operations.

The companies below were among each state’s largest fundraises through September, based on the financing data reviewed for this article. Round amounts and investors are listed where publicly announced.

Claros Technologies develops technology to destroy PFAS, the pollutants commonly called “forever chemicals,” and operates a laboratory that tests for them. The company has reported destruction rates above 99.99% in demonstrations involving industrial process water and concentrated groundwater contaminants. Its July financing will support manufacturing, laboratory expansion and deployment of its treatment systems in North America, Europe and Asia.

Read our coverage of Claros’ $55 million Series B, and our deeper look at its PFAS destruction results in Lake Elmo.

Endogenex is developing ReCET, an endoscopic procedure that targets tissue in the first section of the small intestine to treat type 2 diabetes. The March extension brought its total Series C financing to $138 million and will support its pivotal clinical study and pursuit of FDA approval. In July, the company reported that the study had finished enrolling 350 patients at approximately 40 sites in the United States and Australia.

Read our March funding roundup, including Endogenex’s $50 million extension.

Yardstik helps employers screen workers, verify identities and monitor risks after hiring, including changes in driving records and expiring professional licenses. The company reported 149% year-over-year revenue growth, and its customers include Gopuff, Liveops and TaskRabbit. The August financing will support additional fraud prevention and monitoring capabilities.

Read our coverage of Yardstik’s $30 million Series B.

Gravie offers employers alternatives to traditional health benefits, including its no-deductible Comfort plan and arrangements that help employees purchase individual insurance coverage. According to its 2026 company fact sheet, Gravie serves approximately 3,300 employers and covers more than 100,000 people, up from more than 1,200 employer customers in 2023. The investment announced in July will support expansion, product development and sales.

4C Medical is developing AltaValve, a catheter-delivered device for treating mitral regurgitation, a condition in which a heart valve leaks and allows blood to flow backward. The device is being evaluated in the company’s ATLAS pivotal trial, including at the Minneapolis Heart Institute. The company’s financing activity this year follows a previously announced Series D of up to $175 million led by Boston Scientific in March 2025.

Vertical Insure helps software platforms offer insurance as part of an existing purchase, such as coverage presented at checkout through a sports, travel or events platform. The company works with more than 100 software platforms, including Blackbaud, LeagueApps and Togetherwork. Its August financing will help expand the infrastructure connecting those platforms with insurance carriers.

Read our coverage of Vertical Insure’s investment from Updata Partners.

Pivot Bio makes microbial products that supply nitrogen to crops, helping farmers reduce their use of synthetic fertilizer. Founded in Berkeley, California, in 2011, the company moved its headquarters to Minnetonka in March, adding an established agricultural technology business to Minnesota’s ecosystem. 

Niron Magnetics makes permanent magnets from iron and nitrogen, offering an alternative to rare-earth materials used in electric motors, industrial equipment and consumer electronics. Its September investment from Honda will support commercialization and manufacturing expansion. The company says its Sartell plant, about 287,000 square feet, will be able to produce up to 1,500 tons of magnets a year at full operation and will employ 175 people. Niron opened a pilot plant in Minneapolis in 2024 and has previously raised money from Samsung Ventures, Allison Transmission and Magna, along with Stellantis Ventures.

SHINE Technologies uses fusion technology to test industrial components and produce medical isotopes used in cancer care. Its longer-term ambitions include recycling used nuclear fuel and commercial fusion energy. The company says its isotope product has reached customers in 19 countries. Its February financing will support growth in its existing businesses and continued technology development.

ApartmentIQ, formerly Rentable, provides market data, revenue management and AI tools for apartment operators. The company says its software covers approximately 8 million apartments across more than 1,500 portfolios. Its August investment will support product expansion and hiring across engineering, data, product and sales.

Rivermark Medical is developing FloStent, an investigational, reversible implant intended to treat symptoms of an enlarged prostate. A urologist places the device during an office procedure. The May financing will support its pivotal clinical trial, pursuit of U.S. regulatory approval and preparations for a potential commercial launch.

Cardamom Health works with hospitals and insurers on electronic health records, data, analytics and AI. Founded in 2021, the company helps healthcare organizations improve how they use their technology and information. The minority investment announced in January will support expansion of its advisory, electronic health record and managed services businesses.

Centaur Health owns Asto CT, which makes a scanner that can image a standing horse’s legs and head without general anesthesia, and Leo Cancer Care, which develops cancer treatment technology. Asto CT has installed its scanners at equine hospitals in the United States and United Kingdom. Centaur has not publicly detailed how this year’s financing will be allocated between the businesses.

Roboflow makes tools that help developers build software capable of interpreting images and video. Its customers have included Pella and BNSF, and the company has built a substantial developer community around its open-source tools. Financing databases report a Series C in July, although the company has not publicly announced the round. Its last publicly announced financing was a $40 million Series B led by GV in 2024.

MākuSafe combines wearable sensors with analytics to help employers identify workplace safety risks in manufacturing, agriculture and logistics. Its technology helps employers understand the conditions workers encounter and identify potential problems before they result in injuries. In February, the company said it had monitored more than 8.5 million hours of work and had thousands of users at customers around the world.

PowerPollen develops technology to collect, preserve and apply pollen when it is needed, helping seed producers manage a process that normally depends on a narrow biological window. The company works on applications in corn, wheat and rice. In August, it said it worked with seed companies representing approximately 85% of the North American market.

Growers Edge provides agricultural financial products, including crop plan warranties, input financing, farmland valuation and lending. Its warranties help reduce farmers’ financial risk when adopting specified crop plans. In January 2025, the company said the product covered more than 1 million acres and that it worked with four of the ten largest U.S. agricultural retailers.

Proaction, formerly Flete, provides software and services for commercial fleet maintenance, rentals, registrations and insurance claims. The company says its customers include publicly traded and Fortune 500 businesses. Its July financing will support product development, AI-based operations and hiring.

701x makes GPS and health-monitoring ear tags, ranch software and other tools for beef cattle producers. Alongside its June financing, the company reported its first profitable month and said automation had reduced the cost of assembling its satellite ear tag by 75%. The funding will support international expansion. Founder Kevin Biffert previously founded and sold Fargo Automation.

Tugboat helps homeowners document property damage, challenge insurance claim denials and negotiate settlements. Founded by cousins who previously worked as insurance adjusters, the company says its members have recovered more than $15 million in additional settlements. Its June financing will support distribution through landlords, lenders and restoration companies, along with connections to property-management software.

Lilac Agriculture, a North Dakota State University spinout, develops microbial products that help peas, lentils and dry beans obtain nitrogen. Its first product uses a strain licensed from NDSU and entered limited commercial use this year. The September financing exceeded the company’s initial $1.5 million target and will support expansion across the Northern Plains.

PitchBook recorded nine deals totaling $12 million in South Dakota through September, compared with $32 million for all of 2025. The research for this article did not identify publicly documented company rounds that could be confidently matched to those transactions.

Methodology: State totals come from the Q3 2026 PitchBook-NVCA Venture Monitor figures used for this analysis.