Summary:
South Dakota First Capital launched to support local startups.
Focus on early-stage and emerging businesses in biotech and technology sectors.
Founders emphasize a missed investment opportunity in the region.
Evaluated over 100 companies for potential investments.
Hands-on involvement with portfolio companies to ensure growth.
A new fund, South Dakota First Capital, has been launched to support early-stage and emerging businesses in South Dakota, making strides in its initial investments. Founded by Dave Bockorny and Mark Stowers, both of whom have a rich background in the biotech sector, this initiative aims to address the investment gap in the region.
Mission and Vision
The fund prioritizes investments from pre-seed to Series A, focusing on companies within South Dakota and its neighboring states. It caters to a diverse range of sectors, including software, medical devices, food tech, ag tech, animal tech, energy, mining tech, and more. Joni Ekstrum, executive director of South Dakota Biotech, highlights the importance of this fund in nurturing local biotech companies and attracting regional startups.
Rationale Behind the Fund
Mark Stowers emphasized the stark contrast between South Dakota's 7% of U.S. GDP and its less than 1% share of early-stage investment, labeling it a missed opportunity. He and Dave leverage their extensive experience in business operations and corporate financing to provide the necessary capital for local talent to thrive in their home state.
Early Progress and Investments
Since its inception in October 2024, the fund has evaluated over 100 companies, with plans to invest significantly in promising ventures. Their first two investments include StringTree, an online musical instrument auction platform from Sioux Falls, and Roy, a Minnesota-based sports tech innovator.
Investment Criteria
The founders are particularly interested in biotech companies, especially those with medical devices ready for regulatory submission. They focus on businesses that demonstrate strong management, a clear value proposition, and a potential for high returns within a four-to-six-year timeframe.
Engagement with Funded Companies
Bockorny and Stowers plan to be heavily involved with their portfolio companies, often seeking board positions or acting as observers to provide guidance and facilitate growth. They are committed to being part of the innovation ecosystem in South Dakota, operating from Startup Sioux Falls and actively engaging with local entrepreneurs.
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