Gateway Capital Partners Reaches First Close of $25M Fund II to Back Midwest Startups

Milwaukee VC firm Gateway Capital Partners, the venture firm founded by Dana Guthrie, has reached the first close of Fund II, a fund targeting $25 million in capital to deploy to Midwest startups.

While the exact size of the first close was not disclosed, the milestone will enable the firm to begin funding companies in sectors such as supply chain, logistics, and manufacturing AI.

Fund II’s average check size will be between $500,000 and $600,000, with a target of investing in 20 startups

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Gateway Capital is Funding Midwest Overlooked Startups

The venture firm founded by Dana Guthrie in 2020 focuses on investments in Midwest startups. Gateway Capital aims to capture opportunities where technology-driven disruption intersects with legacy sectors. According to Guthrie, fundraising for Fund II has been underway since mid-last year.

The Milwaukee-based startup’s thesis is that overlooked geographies often produce outlier founders and that entering early offers a return advantage and a responsibility. The belief is that Midwest founders build with discipline and focus on fundamentals, creating advantages for all.

Gateway Capital has built a portfolio of high-conviction early bets in promising Wisconsin pre-seed companies. Some startups in its portfolio include Tip A ScRxipt, Houstr, IcTect, Sonoptima, The Pink Bakery, DropCap, Golgix, and more. These investments have attracted follow-on capital from regional and national venture capital firms, with portfolio companies scaling revenue, expanding into new markets, strengthening leadership, and getting acquired.

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While the firm expects the majority of its investments to remain rooted in Milwaukee and Wisconsin, Fund II will expand Gateway’s reach across Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, and Ohio, thus bringing the same early-entry approach to the broader region.

Investment Beyond Cash Infusion

Gateway’s role doesn’t stop at just investment. The VC firm works closely with founders through the early stages of company building, supporting team growth, customer acquisition, and laying the groundwork for future success.

“Our strategy has always centered on finding founders before the opportunity is obvious,” said Guthrie, Gateway Capital’s Managing Partner. “We then work closely alongside the businesses to achieve key business milestones that generate additional funding and support.”

With this move, her firm joins a growing cohort of regional investors proving that venture capital is becoming increasingly distributed. It builds on Gateway Capital’s initial $13 million Fund I, raised in 2020, which reinforces its position as a regional venture player backing early-stage innovation in underserved US markets.

Furthermore, this fund will support companies in the areas of supply chain, logistics, and manufacturing AI. These investments aim to help businesses scale, adapt to market shifts, and capitalize on new opportunities. 

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Ultimately, Fund II’s launch highlights Gateway Capital’s commitment to expanding its regional portfolio and fueling the growth of Midwest companies. As regional ecosystems mature and prove they can generate returns, expect more funds like this to emerge beyond traditional tech hubs. For Midwest founders, the message is clear: local capital is getting deeper and more sophisticated. 

The question now remains whether Gateway Capital can turn these commitments into portfolio wins that make Fund III even easier to raise.

Main Image: Dana Guthrie, Managing Partner, Gateway Capital. Image Credit: Dana Guthrie