Arthur Ventures Management LLC, a venture-capital firm in Minneapolis and Fargo that has backed numerous local tech startups, said Thursday it raised $155 million for two new funds.
In a statement posted on the firm's website, the firm's partners said they will use the money "to continue investing in the fastest-growing B2B software companies located outside Silicon Valley."
The firm raised $125 million for what it calls a "core fund" that will be used to invest in new firms. It raised another $30 million to put additional investments into firms in which it already owns a stake.
The new round of fundraising, the third in Arthur's history, relies on a different group of investors from those in previous rounds.
"Our prior funds were largely made up of individual investors. These funds are 75% institutional investors," Patrick Meenan, a partner in the firm, said via e-mail.
Arthur Ventures raised $45 million for its first fund in 2013. It raised $72.5 million for two funds in 2017.
With the latest funds, the firm's assets under management rose to $270 million from $116 million, Meenan said.
Meenan and the firm's other partners, James Burgum and Ryan Kruizenga, spent about five months to raise money for the new funds.
