Key Takeaways
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Iowa’s venture capital ecosystem is expanding, with new funds like InnoVenture Iowa and state-backed programs closing early-stage gaps for startups in bioscience, advanced manufacturing, and information technology.
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Founders can leverage Iowa’s interconnected investor community by engaging consistently with statewide events, SBDC centers, and networking hubs in Des Moines, Cedar Rapids, Iowa City, and Ames.
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Public and private capital often work together in Iowa, giving founders a clear path to combine Innovation Continuum funding with angel groups and VCs such as ISA Ventures to build strong early rounds.
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Iowa investors prioritize capital efficiency, milestone-driven execution, and sector alignment, making it critical for founders to show commercial validation and smart use of state and federal resources.
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This guide highlights the most active venture capital firms in Iowa and provides actionable strategies for navigating the local landscape, building relationships, and accelerating your fundraising process.
Raising capital in Iowa looks different from raising in larger coastal hubs, but the state has momentum that founders can use to their advantage. New funds and public programs are working to close early-stage gaps, from the launch of InnoVenture Iowa, the state’s first publicly backed venture fund focused on bioscience, advanced manufacturing, and information technology, to fresh early-stage capital efforts and angel education programs highlighted by innovationIOWA and the Iowa Venture Capital Association. These efforts are helping more Iowa startups access risk capital, while also drawing attention to the fact that many founders still look outside the state for follow-on funding and larger rounds.
This guide is written for founders who are actively raising in Iowa and want a clear picture of how to navigate the local landscape. You will learn which investors are active in the state, what they tend to look for, and how to position your company. You will also find local events, networking opportunities, resources, programs, and communities that can help you build relationships, sharpen your pitch, and stack the odds in your favor when you go out to raise.
Top Iowa Venture Capitalists
InnoVenture Iowa
About: We invest in Iowa entrepreneurs. The InnoVenture Iowa Fund is a $30 million co-investment fund designed to support early-stage startup companies in biosciences, advanced manufacturing, and information technology. As the state’s first public venture capital fund, our fund is uniquely positioned to close the gap in funding for early-stage Iowa startups while spurring future innovation in industries where Iowa is naturally competitive. InnoVenture Iowa is an evergreen venture capital fund, built by (and for) Iowa entrepreneurs.
ISA Ventures
About: Iowa's first multi-stage venture capital studio.
Thesis: ISAV is focused on Iowa's key industry sectors with world-class mentors and industry-leading corporate partners.
- Biotechnology, healthcare, and medical technologies
- Education technologies
- Engineering and automation technologies
- Agriculture, food, and bio-processing
- Insurance & finance technologies
- Transportation & logistics technologies
Next Level Ventures
About: Next Level Ventures is an Iowa-based investment firm that manages over $400 million in assets across a portfolio of over 45 companies, as well as two large-scale strategies. Our Curql Funds focus on building partnerships between fintech companies and credit unions, and our Iowa Funds provide capital investment for technologies in a variety of industries.
Ag Ventures Alliance
About: Ag Ventures Alliance is a business development organization for value-added agricultural ventures. As farmers and agriculture related individuals, the members of Ag Ventures Alliance are taking control of their economic future by participating in value-added agriculture businesses.
ManchesterStory Group
About: ManchesterStory Group is a venture capital firm targeting investments in FinTech and Healthcare, with a particular interest in technologies impacting the insurance industry. Focused on early to growth-stage companies across the United States, ManchesterStory seeks to generate superior returns by connecting exceptional entrepreneurs to strategic capital and relationships.
Prairie Crest Capital
About: Midwest based venture capital firm focused on early stage investments in promising, transformational agriculture and technology innovation. Leveraging their financial and operating experience, the partners identify undiscovered opportunities to provide funding and development assistance to qualifying enterprises poised for accelerated growth.
Plains Angels
About: Plains Angels is a network of Central Iowa angel investors seeking opportunities to invest and grow with startups across diverse industries. Established in 2012, Plains Angels members have invested in medical device, medical discovery, pure technology, social, manufacturing, process improvement, agriculture, fintech, insurtech and more. We also partner with regional angel groups to share innovative opportunities, co-invest, and share best practices.
Networking and Event Opportunities in Iowa
Building relationships is crucial for fundraising in any ecosystem, but especially in Iowa, where the investor community is more concentrated and interconnected. Many of the same individuals are involved in various funds, review committees, and community programs, making consistent engagement and a strong reputation vital.
Important Events and Organizations
While specific event dates vary, look for recurring opportunities hosted by these organizations:
- innovationIOWA Annual Event (Des Moines): Hosted by Business Record/ innovationIOWA, this annual lunch event in Des Moines features Iowa innovators on stage, networking, and recognition of innovation award winners. The 2025 event, for example, ran on July 10 at the Des Moines Heritage Center with dedicated networking time before the program.
- EntreFEST (Cedar Rapids): A multi-day conference and festival focused on entrepreneurs and innovators
- Iowa Venture Capital Association (IVCA): The IVCA hosts events that bring together venture capitalists, angel investors, and entrepreneurs from across the state. These events are prime opportunities to meet institutional investors and understand market trends.
- Iowa Angel Investor Summit (Des Moines): An annual summit that brings together angel investors, founders, and ecosystem leaders. The 2025 summit is scheduled at the Krause Gateway Center in downtown Des Moines and includes an investor pitch event, sessions on VC-style deal analysis, and a pre-summit workshop for aspiring angels. It’s hosted by the Greater Des Moines Partnership, InnoVenture Iowa, Iowa Area Development Group, and Plains Angels.
Recurring Community & Pitch Platforms
- 1 Million Cups (Des Moines and Eastern Iowa): Weekly/regular pitch and feedback gathering where founders present and get input from a community of entrepreneurs and mentors.
- Gravitate Coworking Events (Des Moines): Gravitate is explicitly referenced by IVCA as a hub that “promotes local startup events,” including meetups, founder talks, and community gatherings in Des Moines.
Key Hubs for Connecting
Iowa’s startup and investment activity is centered in a few key cities, each offering distinct opportunities:
- Des Moines: As the state capital and a hub for insurance and financial services, Des Moines is a focal point for venture capital and angel investors. Events here often draw a broader range of public and private decision-makers.
- Cedar Rapids/Iowa City: This corridor is known for its strong ties to the University of Iowa and Iowa State University, fostering innovation in biosciences, advanced manufacturing, and technology. You'll find a mix of academic, corporate, and startup-focused events.
- Ames: Home to Iowa State University, Ames is particularly strong in AgTech and advanced manufacturing, with events often reflecting these specializations.
Leveraging State-Backed Networks
The Iowa Economic Development Authority (IEDA) and the Small Business Development Centers (SBDC) play a significant role in connecting founders with resources and capital.
- SBDC Centers: Located across the state (including Ames, Cedar Falls, Cedar Rapids, Council Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Mason City, and Sioux City), SBDC centers offer resources such as workshops, pitch events, and one-on-one counseling. These are excellent entry points for networking, as they often host or promote events where local investors and mentors are present.
- IEDA Innovation Continuum Events: The application processes for POCR, Demonstration Fund, and Innovation Acceleration Fund often involve panel reviews and presentations to committees. These are not just funding opportunities but also structured networking chances to get your company in front of influential individuals who are often investors themselves or connected to investor networks.
Iowa Venture Capital Landscape
If you are raising capital in Iowa, you are working in a smaller and more concentrated venture market than coastal hubs, with fewer institutional funds and a heavier reliance on a mix of angels, state-backed programs, and regional investors.
The Iowa Venture Capital Association notes that the state’s venture community continues to seek strong opportunities in an environment with limited liquid capital and tax credits, and that many promising startups look outside Iowa for larger rounds once they scale. This means early rounds often come together locally, while later rounds may involve out-of-state leads.
This reality is part of why the state has invested in new tools for founders, including InnoVenture Iowa, a publicly funded, $30 million co-investment venture fund created to close early-stage gaps for Iowa startups in biosciences, advanced manufacturing, and information technology.
These funds are built on federal State Small Business Credit Initiative dollars, with $96 million allocated to Iowa to support small businesses, manufacturers, and startups, which shapes how risk capital is structured and how public and private dollars interact in your round.
Geography And Community Dynamics
Iowa’s capital and support ecosystem is spread across multiple cities, with programs, funds, and resources concentrated in hubs such as Des Moines, Cedar Rapids, Iowa City, and Ames. The headquarters address for InnoVenture Iowa in downtown Des Moines reflects the capital city's role as a focal point, especially given its strong insurance and financial services base.
At the same time, many innovation and manufacturing programs supported by the state’s SSBCI allocation serve companies across a network of SBDC centers and economic development partners in cities statewide, which helps founders outside Des Moines plug into funding resources and technical assistance.
For you as a founder, this structure has a few important implications:
- You can build investor and mentor relationships by tapping into city-level ecosystems rather than relying on a single hub, since workshops, pitch events, and counseling are offered through multiple SBDC centers and partner organizations.
- Your reputation and track record will travel across the state, because many of the same people are involved in funds, review committees, and community programs, which makes consistent follow-through important.
- Time spent in Des Moines and other hubs for events, investor meetings, and pitch forums can help you reach both public and private decision-makers who have influence across the Iowa funding stack.
How Public And Private Capital Work Together
For founders, the most important pattern to understand is how state programs and private investors fit together. The Iowa Economic Development Authority’s Innovation Continuum offers non-dilutive loans at different stages through five funds: Proof of Commercial Relevance, the Demonstration Fund, and the Innovation Acceleration Fund’s Launch, Propel, and Innovation Expansion components.
These programs target advanced manufacturing, biosciences, and information technology, require matching private or federal funds, and are designed to help companies reach the point where they can attract follow-on private capital.
At the equity level, InnoVenture Iowa operates as a co-investment fund that aims to take 10 to 25 percent of early-stage rounds between $250,000 and $2 million, alongside private venture funds, businesses, or angel investors.
Multi-stage private funds such as ISA Ventures, which manages a $22 million fund and invests $25,000 to $1 million in Iowa-based companies across early, growth, and expansion stages, add another layer of institutional capital focused on the state.
As a founder, you can often pair an Innovation Continuum loan with a seed or Series A syndicate that includes angels, an Iowa-based VC, and InnoVenture Iowa, which is a common path for companies in the state’s priority sectors.
What Iowa Investors Tend To Look For
Because public and private capital are tightly linked, investors in Iowa tend to focus on a few consistent themes. InnoVenture Iowa concentrate on companies in advanced manufacturing, bioscience, and information technology that can show a path to commercialization.
Committees and review panels look for evidence of market demand, a clear business model, and the ability to use each dollar to reach specific milestones such as prototype validation, first customers, or scaled revenue.
Private funds like ISA Ventures echo similar expectations, focusing on Iowa companies in sectors such as biotechnology and medical technologies, agriculture and food, engineering and automation, education technology, insurance and finance, and transportation and logistics, and writing checks sized to the stage and traction of the business.
Your best move as a founder is to frame your story around capital efficiency, specific milestones, and how you are using state and federal tools to reduce risk before you ask for larger equity checks from Iowa or out-of-state VCs.
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Frequently Asked Questions
How do I raise venture capital in Iowa as a first-time founder?
To raise venture capital in Iowa, start by engaging with local networks, SBDC centers, and pitch events in hubs such as Des Moines and Cedar Rapids. Most Iowa investors expect clear milestones, capital efficiency, and traction. Many founders pair state Innovation Continuum loans with angel and VC co-investors to build strong early rounds.
Does Iowa have state-backed funding programs for startups?
Yes. Iowa offers several state-backed programs through the Iowa Economic Development Authority, including the Proof of Commercial Relevance, Demonstration Fund, and Innovation Acceleration Fund. These non-dilutive options help early-stage startups achieve validation and attract private venture capital. Many Iowa founders use these programs to de-risk their company before raising equity.
What industries do Iowa venture capital firms invest in most often?
Iowa venture capital firms most often invest in biosciences, advanced manufacturing, agriculture and food, information technology, and medical or engineering technologies. These sectors align with the state’s research strengths and workforce. Investors look for companies that can commercialize quickly, demonstrate market demand, and use capital efficiently to reach clear milestones.
Is Iowa a good place to raise seed funding for a startup?
Iowa is increasingly competitive for seed funding, especially with new initiatives like InnoVenture Iowa and growing angel networks. While the market is smaller than coastal hubs, founders benefit from close-knit investor communities, accessible events, and state programs that reduce risk. Many early rounds come together locally before startups pursue out-of-state VCs.
Where do Iowa startups find follow-on funding after raising locally?
Many Iowa startups secure follow-on funding from regional or out-of-state venture capital firms once they reach commercialization or scalable revenue. Early rounds often combine local VCs, angels, and Innovation Continuum programs, while later rounds tend to involve larger Midwest or coastal investors. Building traction and strong capital efficiency helps attract these follow-on partners.
