Minnesota’s growing influence in wellness and healthtech innovation

I’ve noticed that when venture capitalists on the coasts talk about the next big thing in healthtech, they often point to companies in Silicon Valley or to Boston’s massive biotech scene. Minnesota rarely comes up in those conversations. But spend any time following healthcare innovation, and you’ll notice something interesting: Minnesota shows up everywhere. Dig into the data on digital health funding, and you’ll see Minnesota companies quietly securing serious rounds. Talk to founders building the next generation of wellness tools, and many will tell you they chose Minnesota particularly for its healthcare legacy. 

The numbers tell the story. Minnesota ranks as one of the nation’s top three medtech hubs, second behind California and one spot ahead of Massachusetts. In 2023, the state earned official recognition when Minnesota MedTech 3.0 was designated one of America’s leading technology hubs by the U.S. Economic Development Administration. MedTech 3.0 is a strategy that connects the region’s established medical device manufacturers with partners across the healthcare system to drive innovation in AI, machine learning, and data science. Led by Greater MSP (Minneapolis Saint Paul Regional Economic Development Partnership), the initiative positions Minnesota as a global leader in medical technology. 

This isn’t just about legacy players anymore. A quick search on Pitchbook shows that Minnesota healthcare startups received $1.1B in venture capital funding in 2024, a rebound from 2023’s $723M raised. A new generation of Minnesota-based companies are reimagining how we think about health, wellness, and care delivery. And the approach these companies are taking feels distinctly Midwestern: less flash, more function, and focused on outcomes that matter to real people. 

Minnesota’s healthcare evolution

Minnesota’s healthcare foundation is unmatched. The Mayo Clinic processes over 1.3 million patients annually across its network. UnitedHealth Group generated $400.3 billion in revenue in 2024 , making it the largest healthcare company in the world. Medtronic’s devices are used in procedures every three seconds globally. The result of this foundation is a talent ecosystem that has been driving healthcare innovation forward for decades.

What’s changed in recent years is where institutional knowledge is being unleashed. Former Mayo researchers who spent years in clinical settings are launching AI startups. Ex-UnitedHealth executives who saw healthcare’s inefficiencies from the inside are building direct-pay care models. Medtronic engineers who understand medical devices better than most are applying their expertise to consumer wellness tools. The talent pipeline that once flowed exclusively to large healthcare corporations is now contributing to a startup ecosystem that understands both the complexity of healthcare and the urgency of fixing it. 

The new MN entrepreneurs 

To add further context, I wanted to highlight several companies building right here in Minnesota. These entrepreneurs are using expert knowledge to create the next generation of healthcare leaders, and they’re each tackling different aspects of the healthcare system. 

Gravie is a Minneapolis-based health benefits company that’s rethinking how small and medium-sized businesses provide healthcare to their employees. Gravie is one of the fastest growing health benefits companies, offering plans that cover 100% of costs on the most common healthcare services. Founded in 2013, the company has grown by focusing on transparency and simplicity in an industry that’s known for complexity and hidden costs. Their approach reflects a broader Minnesota trend: using technology to make it work better for the families and workers who depend on it. 

Founded by Minneapolis-based couple Kelley and Doug Satoski after experiencing the impact provoked vulvovaginal pain can have on intimate relationships and mental health themselves, Pelva Health is developing therapeutic solutions for women’s intimate health. With 75% of women nationally experiencing vulvovaginal pain during sexual activity and 28% suffering from chronic conditions that are often untreated for 2-7 years, Pelva Health is addressing a massive and underserved healthcare gap. The company recently raised $500,000 in pre-seed funding led by Groove Capital. 

Next there’s Kavira Health, which brings concierge-style primary care to everyday employees. Kavira is an employer-paid, subscription-based primary and urgent care clinic offering care via telehealth and in-person house visits. The Minneapolis-based startup currently services employees in parts of Minnesota, Wisconsin, and North Dakota and is expanding rapidly. By embedding high-quality primary care into existing employer benefit structures, they reflect Minnesota’s approach of working within healthcare systems rather than around them.

GEM Health rounds out this group with a focus on sleep apnea diagnosis and treatment. Founded and led by CEO Brian Sauer, a 20+ year healthcare industry veteran who previously served as COO at Optum Care Services and successfully exited a digital mental health provider called Sanvello, the company brings deep operational expertise to a massive healthcare gap: approximately 80% of people with sleep apnea go undiagnosed and untreated. GEM Health is building end-to-end care pathways that connect patients from initial diagnosis through ongoing treatment and support. 

The ecosystem that’s making it happen

Behind these companies is an increasingly sophisticated support system. Minnesota’s venture capital community has deepened its healthcare expertise in recent years, with partners who’ve spent time in hospitals, worked at medical device companies, or built healthcare businesses themselves. Vensasa Capital focuses specifically on healthcare innovation. Bread & Butter Ventures leverages the state’s strong corporate connections to support the early-stage digital health companies in its portfolio. Capita3 has carved out a niche investing in women startup founders across innovative health sectors. Gopher Angels, Minnesota’s most active angel investment network, has invested over $28 million in 65 companies since 2012, with a strong focus on healthcare and medical devices. 

There are also several programs specifically designed to help founders accelerate. The University of Minnesota’s Medical Devices Center runs accelerator programs specifically for medtech startups, where engineering students work alongside seasoned entrepreneurs. The Mayo Clinic Platform Accelerator offers a 30-week program that helps early-stage health tech AI startups get market ready, with access to Mayo’s data sets, validation frameworks, and clinical workflow planning. Chrysalis, a new medtech incubator, takes a structured, four-phased approach to guide entrepreneurs from initial concept to market readiness.

Since I entered the venture world it’s been great to see members of this ecosystem continue to go above and beyond to build a community of collaboration. Local firms regularly collaborate with coastal partners to bring together healthcare leaders, innovators, and investors from across Minnesota and the country. Medical Alley regularly hosts events to bring together all stakeholders of the state’s healthcare ecosystem. To me, what stands out about these gatherings is their genuine sense of collaboration rather than competition. People share knowledge, make introductions, and celebrate each other’s successes in ways that feel distinctly Midwestern.

The quiet revolution

Minnesota might not be the loudest voice in venture healthtech, but its influence is growing in ways that matter. The state’s combination of healthcare expertise, entrepreneurial energy, and institutional support is creating companies that solve real problems for real people. These companies aren’t chasing the next AI buzzword or promising to revolutionize healthcare overnight, they’re building the infrastructure for a healthcare system that works better, costs less, and keeps people healthier. 

For investors looking beyond the coastal bubble, Minnesota’s healthtech scene offers something increasingly rare: companies led by people who understand healthcare not from spreadsheets but from experience, serving markets they know intimately because they’ve lived in them, with business models that make sense from day one because they’re built on real problems and real solutions. 

This is the time to pay attention. Not because Minnesota is about to become the next Silicon Valley, but because it’s building upon its long-standing healthcare ecosystem to foster an environment where healthtech and wellness startups thrive. 

Elise Riniker is an Associate at Mairs and Power Venture Capital in St. Paul, a firm which focuses its investments on businesses in Minnesota and the Upper Midwest. She holds a Bachelor of Science in Marketing from the University of Minnesota Carlson School of Management, and has previously worked at Techstars and Bread & Butter Ventures.