Traction Capital was established with the belief that it can offer higher valuations, faster growth, greater influence, and ultimately stronger returns on capital by investing more than just financial capital in its portfolio companies.
FREMONT, CA: As recently reported in the Star Tribune, Traction Capital, a Minneapolis-based hybrid private equity and venture capital firm, declared the launch of the first of its Focus Funds committed to making investments in, or acquisitions of, early-stage and lower middle market companies that are stuck in the “capital gap.” With $15 million targeted and $5 million already committed, the fund will invest in high potential businesses focusing on promising companies that are owned and operated in Minnesota.
Traction Capital was established with the belief that it can offer higher valuations, faster growth, greater influence, and ultimately stronger returns on capital by investing more than just financial capital in its portfolio companies. By utilizing the relevant experience and knowledge of their impressive roster of investors, the firm will also give businesses valuable human and intellectual capital using a proven business management process that will help boost growth and profitability.
The company is directed by Managing Partner, Shane Erickson, who also oversees the Focus Funds. Erickson is the former CEO and Co-Founder of IMC, a Minnesota-based marketing and promotions company.
Erickson is supported by fellow entrepreneurs and investors including Dan Mallin (Equals 3, Minnesota Cup), Andrew Duneman (Bulkreefsupply.com), Jeff Fritz (Revel Health, Lighthouse 1), Ed Peterson (Ultralox), Jeff Hausmann (Cedar Valley Exteriors), John Folkestad (Salo), Julie Fallenstein (Fun.com), Tom Fallenstein (Fun.com), Matt Meents (Yardstik, Magnet 360), Scott Litman (Equals 3, Minnesota Cup), and Wade Burgess (Ultralox).
“Minnesota has no shortage of great ideas and capable entrepreneurs, but funding availability for these ventures at the early stages lags badly as compared to Silicon Valley, Boston, and other areas with a significant amount of start-ups and early stage ventures. Traction Capital will be a great complement for Minnesota Cup and other organizations and initiatives that are dedicated to promote and enable the success of entrepreneurism in Minnesota,” said Traction Capital investor and Minnesota Cup Founder Scott Litman.