In shortNorth Dakota's $250 million Growth Fund, managed by 50 South Capital, has over five years supported more than 25 in-state companies by connecting them with venture capital, private equity, and private credit managers.
3 things to know
1The North Dakota Growth Fund is a $250 million in-state private equity program, part of the North Dakota Legacy Fund, managed by 50 South Capital, an affiliate of Northern Trust.
2Through investment partnerships and co-investments, the fund has helped support more than 25 North Dakota companies across sectors including agriculture, energy, healthcare, and technology.
3More than 40 venture firms have now invested in North Dakota companies, and private equity firms have established offices in the state, compared to limited national investor presence five years ago.
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Five years ago, North Dakota leaders made a decision about the state’s economic future.
While North Dakota had strong legacy industries, talented entrepreneurs, and a growing startup ecosystem, one key ingredient was still limited: access to long-term private capital.
That challenge led state legislators to create the North Dakota Growth Fund, an in-state private equity investment program as part of the North Dakota Legacy Fund. Managed by 50 South Capital, the alternative investment manager of Northern Trust, the program is designed to attract more investment activity to North Dakota and seek long-term returns for the state.
At its core, the idea is to help more North Dakota businesses connect with the capital, expertise, and investor relationships they need to grow.
The North Dakota Growth Fund invests in venture capital, private equity, and private credit managers that bring capital, industry knowledge, and strategic relationships to North Dakota businesses. The program can also co-invest directly alongside those managers in North Dakota-based companies.
Access to capital has long been one of the biggest challenges for entrepreneurs in the state. Many founders can build strong businesses, prove demand, and reach a point of meaningful traction. But when the next stage of growth requires outside investment, historically, there have been fewer venture capital and private equity firms with a regular presence in the region.
The North Dakota Growth Fund is helping close that gap.
By partnering with experienced investment managers, the program is bringing more visibility and stronger investor networks to North Dakota businesses. It is also helping build a more active private capital market inside the state that can support companies at different stages of growth and across a range of industries.
North Dakota’s opportunity is rooted in sectors it already knows well, like agriculture, energy, healthcare, logistics, and manufacturing. As those industries become more technology-driven, North Dakota entrepreneurs are creating new opportunities in automation, software development, data, operational efficiency, and advanced business services.
That is beginning to show up in the kinds of companies growing across the state.
Detect Auto uses technology to improve processes in auto service shops. Tugboat helps people manage insurance claims. FarmQA provides digital tools that help agronomists deliver data-driven recommendations. OAIL develops technology solutions for energy operations. Consumer brands like 3 Farm Daughters bring North Dakota-grown products to grocery shelves nationwide.
Collectively, these businesses show the geographic reach and industry range of North Dakota’s evolving private capital market, with companies growing in Bismarck, Fargo, Grand Forks, Minot, Stanley, Williston, and other communities across the state.
That geographic spread is important.
The story of business growth in North Dakota is not limited to one city or one sector. It includes technology companies, agriculture-focused businesses, energy solutions, consumer brands, manufacturing-related companies, and service businesses finding new ways to scale.
It also includes a broader shift in how entrepreneurs, investors, universities, economic development groups, and state-level organizations think about growth.
Alongside traditional economic development efforts, private investment plays a complementary role by helping businesses access the funding, expertise, and strategic relationships they need to keep growing over time. Stronger private investment networks give North Dakota companies another pathway to expand without having to leave the state to find support.
Five years ago, many national investors were not spending much time evaluating opportunities in North Dakota. Now, more than 40 venture firms have invested in companies in the state, and private equity firms have offices and teams here.
Companies in the North Dakota Growth Fund portfolio employ thousands of people in North Dakota, generate significant revenue, and attract outside investment. More broadly, institutions and organizations across the state are increasingly focused on innovation and entrepreneurship as long-term drivers of growth.
Taken together, these developments point to a private capital market in North Dakota that is broader, more connected, and more active than it was five years ago.
What’s encouraging is not just the number of companies being supported today, but the broader momentum forming around entrepreneurship across the state,” said Kodee Furst, Director at 50 South Capital. “That kind of ecosystem development compounds over long periods of time.
But there is still more work to do.
Private markets take time. Venture-backed businesses can take a decade or more to mature. Fund-of-funds strategies are built across multiple investment vintages, long-term partnerships, and networks that compound over time. Many of the most meaningful outcomes associated with private market investing emerge years after the original investments are made.
Still, five years is enough time to see stronger deal flow, more investor participation, and increased entrepreneurial activity across the state.
It is also enough time to see why this work matters.
States across the country are competing for talent, innovation, business creation, and investment. North Dakota’s long-term economic strength will continue to depend on its legacy industries, but it will also depend on whether the state can support the next generation of entrepreneurs and high-growth businesses.
The North Dakota Growth Fund is one part of that effort.
It is not the only answer. Entrepreneurs still need customers, talent, mentors, infrastructure, and community support. But capital matters. Investor networks matter. Visibility matters. And for many growing companies, the right investment partner can help open doors that would otherwise be difficult to reach.
Five years in, the North Dakota Growth Fund has helped strengthen those connections.
The businesses, investor relationships, and momentum being built today will help define what business growth looks like in North Dakota for years to come.
Learn more about some of the Growth Fund Businesses
About Detect Auto
Detect Auto is a Fargo-based AI company serving auto repair shops and dealerships. Its platform streamlines service operations, helping shops save time, boost productivity, and increase maintenance sales without disrupting workflows. Led by CEO Jon Cabak, the company has expanded to over 500 locations and surpassed $1 million in annual recurring revenue.
Tugboat, based in Grand Forks, is an insurance technology company that helps homeowners understand coverage and manage property claims. Founded by Aaron and Cameron Mooney, it offers policy reviews, home inventory tools, claim support, and expert access to help users navigate claims and secure fair outcomes.
FarmQA is a Fargo-based ag tech company providing digital tools for agronomists, consultants, and farmers. Its platform centralizes field scouting, soil sampling, planning, and data analysis, helping users manage operations more efficiently and make informed decisions.
3 Farm Daughters is a Grand Forks-based pasta brand founded by three sisters from a Red River Valley farm. The company produces high-fiber pasta using farm-grown ingredients, bringing their agricultural roots to a growing consumer market.
The North Dakota Growth Fund ("NDGF") is a $250 million multi-stage investment fund that will seek to invest in North Dakota businesses and entrepreneurs. NDGF was created to further advance innovation and private markets investments in North Dakota by seeking investments that provide strong risk-adjusted returns and support the growing entrepreneurial ecosystem in the State. NDGF will do this by making targeted investments with venture capital, private credit (including venture debt), private equity, growth equity, infrastructure and real assets opportunities with a nexus to the State of North Dakota.
VISION
The North Dakota Growth Fund aims to invest up to $250 million in order to further catalyze the investment and entrepreneurial communities and expand investment opportunities in North Dakota.
MISSION
Through the North Dakota Growth Fund, 50 South Capital will make targeted investments in venture capital, private credit (including venture debt), private equity and growth equity opportunities in both companies and private funds that are either based in North Dakota or possess a significant presence in North Dakota.
NDGF GOALS
Deliver competitive investment performance for the State of North Dakota by building a prudently diversified portfolio.
Drive economic activity in North Dakota by making investments in North Dakota firms in order to support the growing entrepreneurial ecosystem in the state.
Foster a strong, vibrant ecosystem for entrepreneurs and raise the national profile of North Dakota's entrepreneurial ecosystem.
VALUES
50 South Capital seeks to optimize transparency, governance best practices, and alignment of interests when investing through NDGF. These values are essential to effective governance and investment outcomes.
HISTORY
In 2021, the State Investment Board of North Dakota announced the formation of the North Dakota Growth Fund. NDGF was created to further advance innovation and private markets investments in North Dakota by seeking investments that provide strong risk-adjusted returns and support the growing entrepreneurial ecosystem in the state.
This historic commitment to North Dakota’s entrepreneur community is funded by the state’s Legacy Fund, which was created in 2010 and approved by voters in the same year. It is comprised of revenues generated from the state’s oil reserves and investment income.
in 2021, the State Investment Board of North Dakota committed $100 million of the Legacy Fund to the North Dakota Growth Fund with a targeted initial investment period of five years. In 2025, the State Investment Board committed an additional $150 million of the Legacy Fund to the North Dakota Growth Fund.
