Stories of Technology, Innovation, & Entrepreneurship in the Southeast

A Three-State Initiative:

Multiple media outlets have reported on the formation of a new angel group with the unique name of the United States Angel Collective (USAC). The three-state organization is fostered by the Ohio Angel Collective, which was launched by Vessel in late 2023.

Now, Vessel is partnering with local champions to launch the Kentucky Angel Collective, powered by Render Capital, and the Michigan Angel Collective, the first two expansion states in the USAC vision.

“At the United States Angel Collective, our promise is to be true local partners – boots on the ground doing the hard work of ecosystem building,” the USAC writes on its social media platform, and expands on that in what it calls its Manifesto. “Our mission is to help build robust angel communities in underserved states by activating both existing and new angels to be part of a dynamic community that believes in their state, backs high-potential founders, and proves that great tech companies can be built across the U.S.”

Shore Capital Partners:

Shore Capital Partners, a Chicago-based private equity firm with offices in Nashville, has announced the successful close of its third food and beverage fund, Shore Capital Food & Beverage Partners Fund III (“F&B Fund III”), with more than $450 million in capital commitments. The close brings Shore’s total assets under management to approximately $13 billion.

Advanced Manufacturing Fund:

The Ohio-focused Advanced Manufacturing Fund, a multimillion-dollar seed fund for early stage advanced manufacturing start-ups. The fund is an effort among the Manufacturing Advocacy and Growth Network (MAGNET), Cleveland business development service organization JumpStart, and a group of private stakeholders.

In its first iteration, the fund allocated $2 million to six companies in late 2021, including chemical manufacturer Octet Scientific; live streaming and wearable technology firm ActionStreamer; transportation, infrastructure, and construction solutions provider Asynt Solutions; SweatID, a developer of technologies that measure the user’s sodium concentration in real-time to develop a personalized hydration plan; Agile Ultrasonics; and food automation manufacturer Insitu.

Now, the fund has raised another $4 million to accelerate the growth of manufacturing start-ups.

Traction Capital:

Traction Capital, a Minnesota-based venture capital and growth equity firm, has announced the launch of Fund II, its second investment fund focused on scaling early stage businesses in Minnesota and neighboring states. Since its March launch, Fund II has raised more than $30 million in subscriptions, with a target of a $40–60 million fund.

“We’re excited to launch Fund II and continue our support of outstanding founders,” said Shane Erickson, Managing Partner at Traction Capital. “As entrepreneurs, we know how tough scaling a business can be. That’s why we don’t just invest; we offer hands-on experience to help our portfolio companies grow.  The success of our first fund proved that when you combine capital with the right strategy, expertise, and a solid framework like EOS^®, big things happen. With Fund II, we’re doubling down on our commitment to fueling Midwest businesses.”

Halogen Ventures:

Halogen Ventures has announced the close of its $30 million fund to invest in childcare and the future of the family.

With this fund, Halogen Ventures will prioritize investments in the $7.5T Future of Family category with a focus on childcare, while continuing to invest in female-founded companies that are innovating and solving global problems across industries.

“We’re investing in the Future of Families because it’s a massive and untapped opportunity. Childcare is broken in the United States – options and schooling is completely unaffordable for children under the age of six for 99 percent of society. This leads to neglect, kids falling into the foster care system and as over 70% of the incarcerated today went through our foster care system, something needs to change here. Not only is this a massive business opportunity, but it’s also imperative that we do something differently in childcare,” says Jesse Draper, Founding Partner of Halogen Ventures.

Phosphor Capital:

Kulveer Taggar, a two-time alum of Y Combinator (YC), has launched a new investment firm, Phosphor Capital, that is focused on investing in early stage companies that have participated in Y Combinator. To date, Phosphor Capital has raised and invested $34 million.

Known for his deep relationships within the YC community and for all the research he does while investing, Taggar endeavors to personally meet at least half of the founders in each YC batch, and to invest in the top 15-20 percent of companies in each batch. “Over time, it’s been shown that 6.5 percent of YC companies become unicorns,” he says. “That’s one in 15. It’s a fertile ecosystem for an investor like me who knows the Y Combinator world well.”

Taggar has participated in YC twice as a founder – in 2007 with Auctomatic (co-founded with Harj Taggar, Patrick Collison, and John Collison and acquired by Live Current Media) and in 2011 with Zeus Living (acquired by Blueground).

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