Groove Capital

Groove Capital is a Minneapolis-based pre-seed venture capital firm that provides first-check investments to early-stage startups, primarily targeting companies in Minnesota's "friends and family" round that lack immediate capital access. The firm typically deploys $50,000 to $100,000 per investment, supporting high-growth startups across diverse sectors with capital, diligence, and an advisory network of experienced founders and executives. Groove Capital has made over 90 investments since its founding, recently completing a first close of $3.8 million for its fund, which targets a total of $5 million. This capital is raised from a mix of entrepreneurs, mentors, and senior leaders at Minnesota companies, exceeding initial expectations. The firm's leadership includes Partners Reed Robinson, Mickayla Rosard, and Prentice Keller, with Emmet Byron as Principal and Dayo Idowu as Business Development Lead. Groove Capital was founded in 2020 by Reed Robinson.

High-Level Overview

Groove Capital is a Minneapolis-based venture capital firm and angel group founded in 2020, dedicated to providing first institutional checks to Minnesota’s most promising early-stage startups. Its mission is to accelerate the growth of visionary founders by combining the strengths of an active angel network with a traditional venture fund, enabling startups to secure critical early capital and mentorship. Groove Capital’s investment philosophy centers on backing great teams with proven execution ability, a defensible advantage, and the potential to capture compelling market opportunities. The firm invests across diverse sectors, including technology, food innovation, and community-driven solutions, with a focus on companies that create positive local and global impact. By supporting high-growth startups at the pre-seed stage, Groove Capital plays a pivotal role in strengthening Minnesota’s startup ecosystem and fostering innovation.

Origin Story

Groove Capital was founded in 2020 by Reed Robinson, who recognized a gap in Minnesota’s early-stage funding landscape: many talented founders struggled to secure their first institutional investment. Robinson, along with partners Emmet Byron and Mickayla Rosard, set out to build a next-generation platform that would empower both entrepreneurs and investors. The firm quickly evolved from a traditional angel group into a hybrid model, blending the collaborative energy of angel investing with the structured approach of a venture fund. This evolution allowed Groove Capital to scale its impact, launching multiple funds—including Fund II in 2024—and becoming Minnesota’s most active early-stage investor. The firm’s growth reflects its commitment to optionality, enabling investors to participate in ways that align with their goals while supporting a broad range of startups.

Core Differentiators

• Hybrid Investment Model: Groove Capital uniquely combines the agility of an angel network with the resources of a venture fund, offering founders both capital and strategic guidance.
• First-Check Focus: Specializes in providing the first institutional check to Minnesota startups, often at the pre-seed stage, helping founders bridge the gap between idea and traction.
• Active Investor Community: Maintains a vibrant network of accredited investors who collaborate, share insights, and support portfolio companies beyond capital.
• Sector Agnostic: Invests across diverse industries, from tech and food innovation to community-driven ventures, prioritizing teams and market potential over narrow sector bets.
• Proven Track Record: With over $23 million in fund size and multiple closed funds, Groove Capital has established itself as a leading force in the Midwest’s startup ecosystem.
• Operating Support: Offers founders access to mentorship, operational expertise, and connections to help scale their businesses.

Role in the Broader Tech Landscape

Groove Capital is riding the wave of decentralization in venture capital, where regional ecosystems are gaining prominence as founders seek local support and investors look for differentiated opportunities outside Silicon Valley. The timing is critical: as remote work and distributed teams become the norm, regions like Minnesota are poised to attract more talent and capital. Groove Capital’s model taps into this trend by empowering local founders and investors to collaborate, creating a virtuous cycle of innovation and economic growth. The firm’s emphasis on optionality and community-driven investing also aligns with broader shifts toward more inclusive and flexible funding models. By nurturing early-stage startups, Groove Capital is helping to diversify the tech landscape and ensure that innovation thrives beyond traditional hubs.

Quick Take & Future Outlook

Groove Capital is well-positioned to shape the future of early-stage investing in the Midwest. As the firm continues to scale its funds and expand its network, it will likely deepen its impact on Minnesota’s startup ecosystem, attracting more founders and investors to the region. The rise of sector-agnostic, community-driven funds like Groove Capital reflects a broader trend toward democratizing access to capital and fostering innovation in underserved markets. Looking ahead, Groove Capital’s influence could extend beyond Minnesota, serving as a blueprint for regional venture firms nationwide. By staying true to its mission of accelerating visionary founders, Groove Capital will remain a catalyst for change in the evolving world of venture capital.