Feb. 4, 2026

Homegrown Capital has launched its second venture capital fund, raising more than $22 million to invest in regional technology companies.

The firm, co-founded by MarketBeat CEO Matt Paulson and longtime economic development leader Tim Weelborg, launched its initial fund in 2021 with $17 million raised. Paulson said the larger size of the second fund allows Homegrown to continue backing strong technology companies while refining its investment approach.

“We’re pleased with the increase in fund size and what it allows us to do,” Paulson said. “With Fund II, we’ve broadened our focus to look more intentionally at companies between the coasts that share a Midwest mindset around capital efficiency and building durable businesses.”

Homegrown Capital Fund I invested in 15 companies over the past four years, creating a diversified portfolio.

Homegrown Capital Fund II’s investors are a mix of local individuals, regional institutions and family offices, as well as national institutional fund of funds. Paulson said the firm has been encouraged by how the investor base has grown and evolved based on its track record.

“It’s exciting to see continued interest as people become more familiar with our approach and experience from the first fund,” he said.

As part of the firm’s expansion, Homegrown added a full-time associate, Megan Baniecke. Based in Minneapolis, Baniecke works with the managing partners on sourcing and executing early-stage investments. In addition, William Aderholdt joined as a part-time venture partner based in Fargo, specializing in agricultural technology.

With the second fund now underway, Homegrown has already made investments in companies such as Points Path and Chipp.ai.

Julian Kheel, CEO and founder of Points Path, said Homegrown has played an important role as the company continues to grow.

“Homegrown Capital has been exactly the kind of partner we were looking for at this stage,” Kheel said. “They understand what it takes to build a durable business and not just chase short-term wins. They’ve been a true partner to our team, providing honest feedback and support as we scale.”

Homegrown is focused on the following investment criteria:

• Stage: Homegrown leads or co-leads a seed or Series A round with an investment of $500,000 to $2 million.
• Industry: Homegrown is specifically interested in high-tech companies in B2B software, agricultural technology, financial technology and digital media and subscription businesses that demonstrate robust scalability.
• Geography: Homegrown focuses on empowering companies in South Dakota, North Dakota, Minnesota and other Midwestern states.

Companies that meet Homegrown’s criteria can apply for funding at homegrown.capital.