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Investing in Iowa Reports

Investing in Iowa: Q2 2019

July 29, 2019

The following is a list of all known investments raised by Iowa companies in the second quarter of 2019. In Q2, Iowa-based companies raised $7,555,000. That combined with the investments from Q1 brings the total amount raised through the first two quarters of 2019 to $14,914,000.

Here is a list of Iowa companies that raised investment money in Q2 of 2019.

Q2 2019

CompaniesLocationAmount RaisedDate
droneSAR Des Moines$40,00005-14-19
Greenfield Nitrogen, L.L.C.Garner$3,000,00004-02-19
Haber TechnologiesAmes$310,00005-24-19
HandrailCoralville$800,00004-11-19
iotaMotionIowa City$100,00004-07-19
HealthTech SolutionsCoralville$50,00005-03-19
Point of Choice, LLCFairfield$1,730,00006-04-19
VetMeasureAmes$25,00006-11-19
WorkhoundDes Moines$1,500,00006-18-19
$7,555,000

Investments happened all around the state this quarter

Q2 of 2019 saw nine different investments to companies from six different cities throughout Iowa. This contrasts with investment data Clay & Milk has tracked up until this point.

In Q1 of 2019, seven of the nine companies that received money were from either Des Moines or Ames, with the other two being from Cedar Rapids and Iowa City. In 2018, 18 of the 31 companies that raised investment money were based in Des Moines or Ames.

Investments continue to see a dip in size

While the number of companies that raised money this quarter stayed roughly the same, the size of the rounds decreased. The average amount raised this quarter was just over $839,000.

For comparison, in 2019, 31 companies raised a total of over $105 million, making for an average round size of nearly $3.4 million. 17 of the 31 companies that raised capital in 2018 had rounds of over $1 million. So far this year, just 5 of the 18 companies to raise money have had rounds of $1 million or larger.

UnityPoint Health launches $100 million venture fund

While Q2 continued to see a decrease in investments compared to 2018, it did see the launch of a new $100 million venture fund.

In May, West Des Moines-based health care organization UnityPoint Health announced the launch of a $100 million venture fund that will invest in early-stage growth health service companies. From our findings, this is the largest venture fund ever that is based in Iowa.

Since announcing the fund, UnityPoint has already made a $1 million investment in Coralville-based VIDA Diagnostics paired along with a strategic partnership with the company.

This list was made from a combination of SEC filings, Crunchbase and previous Clay & Milk stories from throughout the year. If you are aware of investments we have missed, please post them in the comments or send us an email and we will be sure to add them.

Clay & Milk composes a similar list of investments for every quarter to build a credible track record of capital raised throughout Iowa. Over time, we will continue to add analysis to these posts, comparing past time periods and noting trends as they appear.

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Investing in Iowa: Q2 2019 | Clay & Milk
A central Iowa ag-tech accelerator has secured more backers and finally has a name. The Greater Des Moines Partnership first announced the accelerator last year, naming four initial investors. On Monday, the Partnership said the program will be called the "Iowa AgriTech Accelerator" and named three new investors. The new investors include Grinnell Mutual, Kent Corp. and Sukup Manufacturing, all Iowa companies. They join investors Deere & Co., Peoples Co., Farmers Mutual Hail Insurance Co. and DuPont Pioneer. Each investor has agreed to put up $100,000 for the first year of the accelerator. Startups entering the program will receive $40,000 in seed funding in exchange for 6 percent equity. Tej Dhawan, an angel investor and local startup mentor, is serving as interim director until the AgriTech Accelerator names a permanent leader. Dhawan held a similar role with the GIA before Brian Hemesath was named as managing director. As interim director, Dhawan said his main job includes hiring the accelerator's executive director, establishing a business structure and initial recruiting for the first cohort. The accelerator will place few filters, such as location and product, on the applicant pool, Dhawan said. "When you’re seeking innovation, innovation can come from every corner of the world so why restrict ourselves," he said. One area the the AgriTech Accelerator won't recruit from is biotech. For its first cohort, the AgriTech Accelerator will work out of the GIA's space in Des Moines' East Village, Dhawan said. A future, permanent home is still to be decided. The accelerator's program will host startups from mid-July through mid-October, ending with an event connected to the annual World Food Prize. The GIA, which the AgriTech Accelerator is based on, also ends with presentations at an industry event. The accelerator has also started lining up a mentor pool. The Iowa Corn Growers Association, Iowa Soybean Association and the Iowa Pork Producers Association have agreed to provide mentors, as has Iowa State University. While the AgriTech Accelerator is loosely based off of the GIA, it will differ in its business structure, Dhawan said. The GIA runs through a for-profit model for both operations and its investment fund. The AgriTech Accelerator will have a nonprofit model for its operations and a for-profit setup for its fund. Dhawan said the nonprofit model is being used so the accelerator can better work with other nonprofit partners, such as trade associations. "These are all organizations that are nonprofits and can be amazing stakeholders without ever having to be investors in the accelerator," he said. "It becomes easier to work with trade associations in their nonprofit role when we are also a nonprofit." When it's up and running, the AgriTech Accelerator would be one of a handful of ag-focused startup development programs in Iowa. Others include the Ag Startup Engine out of Iowa State University and the Rural Ventures Alliance from Iowa MicroLoan. Matthew Patane is the managing editor and co-founder of Clay & Milk. Send him an email at mpatane@clayandmilk.com.
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