May 19, 2026

This piece is sponsored by MarketBeat.

There’s a stage in building a company where things start to feel real.

The idea has moved beyond a concept. There might be early traction, maybe even a few customers.

But when it comes time to raise that first round of capital, many founders hit the same wall. They’re too early for traditional investors but too far along to keep building without outside support.

And more often than not, that’s where things start to stall.

In South Dakota, that moment historically has been difficult to navigate — not because of a lack of ideas but because of limited access to early-stage capital that can help turn promising startups into investable businesses.

Over the past several years, the state’s startup ecosystem has expanded with accelerators, incubators and coaching programs providing founders with mentorship, education and connections. What has been harder to access is the capital needed to keep those businesses moving forward.

For some founders, the lack of early funding means slowing down or giving up. For others, it means seeking financial support outside the state.

The Dakota Seed Fund is built for that moment.

By providing early-stage capital in stages as companies meet specific goals, the fund aims to help founders continue building in South Dakota.

The fund was launched through the Enterprise Institute, a nonprofit venture development organization that supports high-growth startups in South Dakota. Developed under the leadership of executive director Tom Eitreim, the Dakota Seed Fund is positioned to serve as the state’s “first check” for companies working toward proof of concept or early revenue. Investments will be milestone-based and tied to measurable progress.

The fund plans to invest between $25,000 and $75,000 per company across an initial portfolio of 10 to 20 South Dakota startups. Capital will be deployed in stages as companies meet agreed-upon milestones, giving founders access to early funding while creating clear expectations for progress.

“At this stage, founders don’t just need encouragement. They need a clear next step,” Eitreim said. “This fund gives them capital tied to specific goals so they can prove what’s working and be better prepared when they approach angel groups, venture firms or other follow-on investors.”

The Dakota Seed Fund prioritizes technology-driven startups with scalable business models, early traction and a clear path toward becoming venture-backable companies. Businesses are expected to be based in South Dakota, with key personnel operating in the state or maintaining a significant local presence.

The fund reached its first close March 31, securing $500,000 in initial commitments and formally launching operations. Additional capital will continue to be raised as the fund begins sourcing and evaluating investments.

MarketBeat, the largest digital media company in the Dakotas, is one of the Dakota Seed Fund’s initial contributors, providing $50,000 via the Enterprise Institute. Based in Sioux Falls, MarketBeat provides market news, data and research tools to millions of investors.

“If we want more companies to start and stay in South Dakota, we need to make it easier to move from an idea to a viable business. This fund creates a more defined path for founders to do that,” said Matt Paulson, founder and CEO of MarketBeat.

Paulson has played a long-standing role in South Dakota’s startup ecosystem. In 2019, he founded Startup Sioux Falls as a community organization to connect founders, small-business owners and startup resources in the region. The organization later merged with the Zeal Center for Entrepreneurship, helping form what is now Startup Sioux Falls.

“We’ve benefited from having access to early-stage capital in South Dakota, and we’ve seen how important those first investment dollars are,” Paulson said. “There are strong ideas here, but without early capital, many of them don’t get the chance to develop into something investable. This is another way we’ve been able to support the startup community and help more companies get off the ground.”

The Enterprise Institute’s creation of the Dakota Seed Fund is supported in part by a federal Economic Development Administration grant focused on strengthening South Dakota’s innovation infrastructure and expanding access to early-stage capital for high-growth companies.

The Enterprise Institute will continue to work with its network of programs and partners to identify companies that align with the fund’s investment criteria.

“A lot of this comes down to staying connected to what’s already happening across the state,” Eitreim said. “There are strong companies being built, and this helps create a clearer path for the ones that are in a position to take that next step.”

Paulson echoed the sentiment, noting that “if we can help more companies get through that early stage, it provides more opportunities for growth and investment down the line.”

For founders, that support comes with clearer expectations and a more structured path forward.

It also brings more clarity to a stage that often has been difficult to navigate: the point between an idea gaining traction and becoming a business ready for outside investment.

Additional information about the fund can be found at dakotaseedfund.com.