Capital Midwest Raises $30M of Possible $150M for Third Fund

Capital Midwest Fund, a venture capital fund based in the Milwaukee area, has raised nearly $30 million from 32 investors for its third fund, according to a document filed with the SEC on Thursday.

The investor group plans to raise up to $150 million for its latest fund, according to the filing. That would make it an even bigger player among the small group of VCs based in Wisconsin, where entrepreneurs and startup advocates often lament the lack of available funding.

Dan Einhorn, a general partner with the fund, declined to comment on what types of investments Capital Midwest plans to make with the new money, and whether it has a timeline for raising the remaining $120 million.

In January, Capital Midwest told Xconomy it expected to close on an initial round of money for its third fund—which it said would likely total between $100 million and $150 million—by mid-2015.

One investment Capital Midwest made with its $40 million second fund was in OnKöl, a Milwaukee startup developing a box-shaped, Internet-connected device for people seeking to remotely monitor loved ones, like adults with aging parents. Another was in Therapeutic Proteins International, a manufacturer of generic biologic drugs; in 2012, the company was acquired for more than double Capital Midwest’s investment, Einhorn has said.

Capital Midwest’s first fund, launched in 2008, totaled about $5 million.

Jeff Buchanan is the editor of Xconomy Wisconsin. Email: jbuchanan@xconomy.com Follow @_jeffbuchanan

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