In this episode, we share a slice🍕 with Reed Robinson, co-founder and general partner of Groove Capital, a $15.5 million pre-seed fund dedicated to investing in the heart of the Midwest - Minnesota.
Over two decades ago, a college professor introduced Reed to the venture world, igniting a spark that would one day lead to Groove. But it was his experience at a startup he "didn't enjoy" that truly set his entrepreneurial journey into motion.
“I found myself pretty miserable in my job… so I decided to leave and run an organization full-time that I had co-founded seven or eight years earlier,” Reed recalls.
That organization was Beta, a 501c3 Minnesota-based accelerator, and it ended up being the perfect crash course in how to build something meaningful from the ground up.
The experience at Beta gave Reed the confidence to launch Groove Capital, a fund laser-focused on finding and backing the hidden gems within Minnesota’s bustling tech ecosystem. What makes Groove special isn't just its Midwest focus—it’s Reed’s deep, authentic connections within the local community. While many chase opportunities on the coasts, Reed has doubled down on his home state of Minnesota, a state overflowing with untapped potential.
“If you look at the history here, Minnesota is reliably creating businesses that start small, solve big problems, and grow into global success stories," Reed explains. "This is a place of innovation across industries - from healthcare and retail technology to financial services and even a surprisingly strong sports tech scene. Minnesota offers a unique variety of industries - and to top it off, the deals here are half the price of coastal markets.”
Minnesota is also home to the highest number of Fortune 500 companies per capita and has built a reputation for delivering groundbreaking advancements in business and technology. It’s a state where big names and bold ideas flourish, making it the ideal environment for startups to grow and thrive.
Of course, building a venture firm in a non-traditional market comes with challenges, but Reed’s approach is refreshingly humble and community-driven. Rather than trying to be an expert in every field, he relies on a trusted network of seasoned operators to support his portfolio companies. He’s also committed to building trust with his investors through transparent, monthly updates.
“I truly believe that relationships are one of the most important competitive advantages,” Reed says. “Groove is an extension of the relationships I’ve built over my career. I realized I was in the middle of a very unique and special opportunity right here in Minnesota.”
Reed is betting big on overlooked talent in America’s heartland backing startups like:
Aegle: Transforming healthcare risk funding
Vertical Insure: Making embedded insurance a part of every online transaction
VOCxi: Creating a noninvasive, early disease detection system that delivers accurate results with just one minute of breathing
YourPath: Improving access to care for people with substance abuse issues
Whether you’re a Minnesota-based founder looking for a partner who understands the power of community, or an investor seeking fresh perspectives beyond the coasts, Reed and Groove Capital are ready to connect.
You can find Reed at reed@groovecap.com.
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