# Southeast Minnesota Capital Fund Southeast Minnesota Capital Fund is a Venture Capital based in Rochester, United States. ## Overview - **Organization type:** Venture Capital - **Headquarters:** Rochester, United States - **Region:** North America - **Address:** Rochester, MN, United States - **Founded:** 2017 - **Assets under management:** Undisclosed - **Website:** semncapital.com - **LinkedIn:** https://www.linkedin.com/company/smcf ## Regulatory record - **Reports private funds:** No ## About The Southeast Minnesota Capital Fund provides early-stage investment capital to Minnesota entrepreneurs building innovative, high growth companies. We invest across the state, with a preference for companies located in or connected to Rochester and SE Minnesota. ## Sectors - MedTech - Life Sciences - Digital Health - Healthcare Services ## People - David Herbert — Co-Manager - Harry Hoffman — Co-Manager ## Questions ### Who runs investment decisions at SMCF? David Herbert and Harry Hoffman co-manage the fund. They screen all potential portfolio companies and conduct final due diligence, but only after the full membership has heard live presentations from founders and endorsed moving forward. The Board of Managers formally approves all investments the co-managers recommend. ### How does SMCF involve its limited partners in deal evaluation? SMCF invites all fund members — many former or current Mayo Clinic physicians, scientists, and business leaders — to attend presentations by CEOs of companies under consideration. Members ask questions, and the co-managers only proceed to final due diligence on companies that receive member endorsement. Members with specific med tech or life sciences expertise are frequently called upon to assist. ### Is SMCF structured like a traditional venture fund? No. While it operates two classic closed-end funds, the investment process is closer to a members-driven syndicate. LPs play an active, gated role in evaluation and endorsement, and the fund also offers members the opportunity to make personal side investments in portfolio companies on the same terms as the fund. ### What stages and sectors does SMCF target? SMCF invests in seed and early-stage rounds, predominantly in medical technology and life sciences. Its disclosed portfolio spans devices, diagnostics, biotech, healthcare IT, and precision medicine. The fund will consider opportunities outside those sectors and states a strong preference for Minnesota-based companies, especially those in Southeast Minnesota or with a Mayo Clinic nexus. ### How large are SMCF's funds and what is the return target? Fund I closed at $2 million and was deployed across 14 Minnesota startups between 2018 and 2021. Fund II closed at $7 million in early 2022. The co-managers target a 2.5x return on committed capital over an expected 8- to 10-year fund life. ### Does SMCF consider economic development in its investment decisions? No. While SMCF hopes its investments contribute to economic development in Southeast Minnesota and help transform Rochester into a bio-business hub, the firm explicitly states that metrics like jobs created are not factored into any investment decisions. ### What is the connection between SMCF and Mayo Clinic? SMCF is independent of Mayo Clinic, but the connection is structural. Co-managers David Herbert and Harry Hoffman built Mayo Clinic's venture co-investment program in 2012, and many SMCF members are current or former Mayo physicians, scientists, and business leaders. The fund favors companies with a Mayo Clinic nexus and leverages members' clinical and scientific expertise in deal evaluation. ## Related profiles - [Southeastern Trust Company](https://altss.com/profile/southeastern-trust-company) - [Southern Alaska Carpenters Retirement Plan](https://altss.com/profile/southern-alaska-carpenters-retirement-plan) --- Last updated: 2026-06-03T20:00:00.000Z Canonical page: https://altss.com/profile/southeast-minnesota-capital-fund Maintained by Altss — https://altss.com — methodology: https://altss.com/methodology