❄️MINNEAPOLIS/ST. PAUL ECOSYSTEM

Minneapolis/St. Paul Startup Ecosystem

Enterprise software and healthcare hub with strong corporate presence. Growing tech scene with lower costs and business-friendly environment.

1,500+ startups•5 unicorns•Last updated: January 2025

Ecosystem Overview

💰 Funding

$2B+ in total funding, with growing access to VCs and corporate investors.

👥 Talent

80K+ tech workers and access to University of Minnesota talent.

🏢 Infrastructure

10 accelerators, 20 co-working spaces, and growing support networks.

Key Strengths

Strong enterprise software ecosystemHealthcare and medtech focusStrong corporate presenceLower costs compared to major citiesAccess to University of Minnesota talentBusiness-friendly environment

Key Industries

Enterprise SoftwareHealthcare TechFintechE-commerceLogisticsReal Estate Tech

Cost of Living

$1,300/mo

Average 1BR Rent

$1,700/mo

Average 2BR Rent

105

Cost of Living Index (100 = National Average)

Top Accelerators

Techstars Minneapolis

Techstars accelerator program in Minneapolis

Funding: $120K

Equity: 6%

Duration: 3 months

Co-working Spaces

WeWork

Global co-working space with locations in Minneapolis

Starting at: $300/mo

Top Funding Sources

Matchstick Ventures

Early-stage VC firm focused on Midwest

Check Size: $500K - $2M

Focus: Enterprise Software, SaaS...

Notable Companies

Target

Retail company, founded in Minneapolis

Valuation: $80B+

Frequently Asked Questions

Why is Minneapolis/St. Paul a good city for startups?

Minneapolis/St. Paul offers an enterprise software and healthcare hub with strong corporate presence, lower costs than major tech hubs, business-friendly environment, and growing tech scene. The city has a strong presence in enterprise software and healthcare, with access to major corporate customers.

What are the top accelerators in Minneapolis/St. Paul?

Top accelerators include Techstars Minnesota, gener8tor, and Beta.MN. The ecosystem also benefits from strong corporate partnerships and growing startup community. Many accelerators focus on enterprise software and healthcare.

How much does it cost to start a startup in Minneapolis/St. Paul?

Minneapolis/St. Paul has a cost of living index of 101 (1% above national average), making it one of the most affordable major business hubs. Average rent for a 1-bedroom is around $1,300/month, allowing startups to significantly extend their runway while accessing major corporate customers.

What industries are strongest in Minneapolis/St. Paul?

Minneapolis/St. Paul is particularly strong in enterprise software, healthcare, fintech, and logistics. The city's position as a major business hub with strong corporate presence makes it ideal for enterprise software startups targeting corporate customers.

Is Minneapolis/St. Paul good for enterprise software startups?

Yes, Minneapolis/St. Paul is one of the best cities for enterprise software startups due to its position as a major business hub, strong corporate presence, access to major corporate customers, and growing tech scene. Many Fortune 500 companies are headquartered in the Twin Cities.

What VCs are active in Minneapolis/St. Paul?

Active VCs include Matchstick Ventures, Rally Ventures, and Great North Labs. Many national VCs also invest in Twin Cities startups, recognizing the opportunities in enterprise software and the value proposition of lower costs and access to major corporate customers.