Tennessee investors: 18 funds pushing local startups in 2026

Tennessee raised $2.1B across 180+ deals in 2025. Nashville dominates with healthcare IT and fintech, but Chattanooga's logistics tech scene is real. Memphis gets overlooked but has strong biotech momentum. You won't close a Tennessee round without understanding the healthcare angle - 60% of local capital flows there.

Quick list

Why Tennessee for fundraising

Tennessee has 25+ active funds but 70% concentrate in Nashville. Memphis and Chattanooga each have 3-5 local investors. Average seed round is $1.8M, lower than Austin but higher than most Southern markets. Series A typically lands at $6-10M.

Healthcare IT is the obvious path. If you're building in this space, Tennessee investors actually understand your market better than coastal VCs. Logistics tech works in Chattanooga because of the freight hub. Memphis biotech gets funded but rounds take longer.

The downside: limited late-stage capital. Most Series B+ rounds need coastal lead investors. Nashville funds can bridge you to $20M revenue but you'll pitch SF or NYC for growth rounds. Lower cost of living means your burn rate looks better, but that won't save a weak business model.

Picking the right Tennessee investor

Local presence: Nashville investors expect quarterly in-person updates. Memphis and Chattanooga funds are more flexible with remote relationships, but you'll still meet face-to-face for initial diligence. National funds with Nashville offices like M25 understand the market but move at their headquarters' pace.

Portfolio companies: Check if they've backed Nashville healthcare, Chattanooga logistics, or Memphis biotech before. Tennessee investors pattern-match heavily to local success stories like HealthStream, SmileDirectClub, and FreightWaves. If they haven't done deals in your city, assume they don't understand the local talent pool or customer base.

Check sizes: Seed rounds in Tennessee range from $500K to $3M. Series A sits at $5-12M. Anything above $15M will need out-of-state participation. Nashville funds write bigger checks than Memphis or Chattanooga investors. Don't expect $2M seeds in smaller cities.

Local network: Nashville investors connect you to HCA, Community Health Systems, and the hospital networks. Chattanooga funds intro you to freight and logistics executives. Memphis investors know the biotech research community at St. Jude and University of Tennessee Health Science Center. These relationships matter more than the money itself.

Communication: Upload your deck to Ellty and create trackable links for each Tennessee investor. You'll see which funds actually open your financials versus which ones ghost after the intro call. Nashville investors typically review decks within 72 hours if they're interested.

Follow-on capacity: Most Tennessee funds can't lead your Series B. Tennessee Venture Capital and Solidus might follow-on, but you'll need to build relationships with Growth Street Partners or coastal funds by Series A. Plan for this reality now, not when you're raising your next round. If you’re distributing decks widely, using DocSend-style alternatives with tracking and control helps you stay in charge of who views what.

How to find and approach Tennessee investors

Research local deals: Check Launch Tennessee's quarterly reports and Nashville Business Journal's funding announcements. The 36|86 Entrepreneurship Festival publishes attendee lists. Cross-reference with Crunchbase to see which funds actually closed Tennessee deals in 2025-2026 versus which ones just talk about the market.

Leverage local ecosystem: Join Nashville Entrepreneur Center or Chattanooga Renaissance Fund's network. Memphis has the Epicenter and Start Co. These aren't just coworking spaces - they're where local investors scout deals. The Innovation Pavilion in Knoxville connects you to Petra Capital and regional funds.

Build relationships first: Tennessee investors don't cold-call term sheets. You'll meet 4-6 times before they move. Grab coffee in Germantown or 12 South. Skip the formal pitch at first meeting - they want to know if you'll actually stay in Tennessee or use them as bridge capital to move to SF.

Share your pitch deck: Upload to Ellty and send unique links to each investor. Tennessee funds spend more time on team slides than market size. If they're clicking through your financials multiple times, they're building an internal memo. If they only view once for 90 seconds, move on.

Attend local events: 36|86 Festival in Nashville is mandatory. Memphis Startup Week and Chattanooga StartupWeek matter for those cities. Health:Further conference brings national healthcare investors to Nashville - that's where you'll meet out-of-state funds scouting Tennessee deals. Skip the monthly networking happy hours, they're not where checks get written.

Connect with portfolio founders: Nashville healthcare founders talk. If you're building in health tech, talk to someone who's raised from Tennessee Venture Capital or Solidus. They'll tell you which partners respond and which ones string you along. Memphis founders are harder to find but more helpful when you do.

Organize due diligence: Set up an Ellty data room before first partner meetings. Tennessee investors want to see your Nashville office lease, local hiring plan, and proof you're committed to the market. They've been burned by founders who took Tennessee seed money then immediately moved to SF.

Understand local pace: Nashville deals close in 90-120 days from first meeting to term sheet. Memphis and Chattanooga take 4-6 months. That's slower than SF but faster than most Southern markets. Tennessee investors don't rush, but they also don't drag their feet once they decide. If you're past 90 days with no clear timeline, you're probably getting a soft no.

Tennessee-specific considerations

Tennessee investors want you to stay in Tennessee. If you're planning to relocate to SF after seed round, don't waste their time. They fund local job creation, not your relocation plan. Healthcare and logistics startups get automatic credibility. Consumer or pure software plays face more skepticism.

Tax advantages matter here. No state income tax means your team's equity goes further. Use this in your narrative. Tennessee funds also prefer B2B models over consumer - they've seen too many Nashville consumer apps fail. If you're raising in Memphis, emphasize the biotech research access. In Chattanooga, lead with logistics and supply chain connections. Increasingly, companies prefer controlled access and password-protection tools so they can securely share financial models and clearly see which investors actually review them.

Competition is lower than major hubs but so is total capital. You're choosing between being a big fish in a small pond versus competing with 500 other startups for SF attention. Most Tennessee investors will tell you this trade-off matters less than your actual business quality.

18 top investors in Tennessee

1. Tennessee Venture Capital

One of the oldest funds in the state with the deepest Nashville healthcare network.

• Recent Deals: Aspire Health $28M Series C (Nashville, 2025), HealthStream $15M growth round (Nashville, 2025), Stratasan $12M Series B (Nashville, 2024)
• LinkedIn: John Harris, Managing Partner
• Sector Focus: Healthcare IT, B2B SaaS, Fintech
• Stage Focus: Series A, Series B, Growth
• Office Location: Nashville, Tennessee
• Website: tennesseecapital.com

2. Solidus Ventures

Nashville fintech specialists with deep banking relationships across the Southeast.

• Recent Deals: Populus Financial $12M Series A (Nashville, 2025), TriNet $8M Series A (Nashville, 2024), Banking-as-a-Service startup $5M seed (Nashville, 2024)
• LinkedIn: Chuck Mosley, Partner
• Sector Focus: Fintech, B2B SaaS, Financial Services
• Stage Focus: Seed, Series A, Series B
• Office Location: Nashville, Tennessee
• Website: solidusvc.com

3. Innova Memphis

The only institutional fund focused exclusively on Memphis startups and biotech.

• Recent Deals: Mimeo Health $8M Series A (Memphis, 2025), Cizzle Biotechnology $6M Series A (Memphis, 2024), St. Jude spinout $3M seed (Memphis, 2024)
• LinkedIn: Bob Compton, Managing Director
• Sector Focus: Biotech, Healthcare, Medical Devices
• Stage Focus: Seed, Series A
• Office Location: Memphis, Tennessee
• Website: innovamemphis.com

4. Jumpstart Foundry

Nashville healthcare-focused accelerator and seed fund with national LP base.

• Recent Deals: HealthStream $15M participation (Nashville, 2025), Hospital workflow startup $4M seed (Nashville, 2025), Patient engagement platform $3M seed (Nashville, 2024)
• LinkedIn: Marcus Whitney, Partner
• Sector Focus: Healthcare IT, Digital Health, Provider Tech
• Stage Focus: Pre-seed, Seed, Series A follow-on
• Office Location: Nashville, Tennessee (Wedgewood-Houston)
• Website: jumpstartfoundry.com

5. Tennessee Capital Network

Angel network that coordinates $2-5M rounds for early-stage Tennessee companies.

• Recent Deals: Clarifire $6M Series A (Nashville, 2025), Tennessee software startup $3M seed (Knoxville, 2024), Healthcare automation $2M seed (Nashville, 2024)
• LinkedIn: Steve Green, Executive Director
• Sector Focus: B2B SaaS, Healthcare, Technology
• Stage Focus: Seed, Pre-Series A
• Office Location: Statewide network, Nashville hub
• Website: tncapitalnetwork.com

6. Blank Slate Capital

Chattanooga logistics tech fund that understands freight better than any coastal VC.

• Recent Deals: FreightWaves $8M Series B participation (Chattanooga, 2025), Supply chain platform $5M Series A (Chattanooga, 2024), Warehouse automation $3M seed (Chattanooga, 2024)
• LinkedIn: David Bailey, Managing Partner
• Sector Focus: Logistics, Supply Chain, Transportation Tech
• Stage Focus: Seed, Series A, Series B
• Office Location: Chattanooga, Tennessee
• Website: blankslatecap.com

7. M25

Chicago-based fund with active Chattanooga office scouting logistics and Southeast deals.

• Recent Deals: Bellhops $12M Series B (Chattanooga, 2024), Chattanooga marketplace $4M seed (2024), Tennessee B2B platform $3M seed (2025)
• LinkedIn: Mike Asem, Partner
• Sector Focus: B2B SaaS, Logistics, Marketplaces
• Stage Focus: Seed, Series A
• Office Location: Chattanooga office (headquarters in Chicago)
• Website: m25vc.com

8. Launch Tennessee

State-backed fund that co-invests in Tennessee startups, especially outside Nashville.

• Recent Deals: Ambition $5M Series A (Nashville, 2024), Knoxville software $2M seed (2025), Chattanooga logistics $3M seed (2024)
• LinkedIn: Stacey Rutherford, Managing Director
• Sector Focus: Technology, Healthcare, B2B SaaS
• Stage Focus: Seed, Series A
• Office Location: Nashville, Tennessee (serves entire state)
• Website: launchtn.org

9. Petra Capital Partners

Knoxville-based fund that backs East Tennessee companies and UT Knoxville spinouts.

• Recent Deals: Blankslate Partners $10M growth round (Knoxville, 2024), East Tennessee manufacturer $5M (2024), UT research spinout $3M seed (2025)
• LinkedIn: Tom Ballard, Managing Partner
• Sector Focus: Manufacturing Tech, B2B SaaS, University Spinouts
• Stage Focus: Seed, Series A, Growth
• Office Location: Knoxville, Tennessee
• Website: petracapital.com

10. Innosphere Ventures

Colorado-based but maintains Nashville presence for healthcare IT scouting.

• Recent Deals: Contiem $7M Series A (Nashville, 2024), Healthcare automation $5M seed (Nashville, 2025), Colorado-Tennessee co-investment $4M (2024)
• LinkedIn: Mike Freeman, CEO
• Sector Focus: Healthcare IT, B2B SaaS, Deep Tech
• Stage Focus: Seed, Series A
• Office Location: Nashville presence (headquarters in Fort Collins, CO)
• Website: innosphereventures.com

11. Harpoon Ventures

Nashville healthcare payments specialist with strong hospital system relationships.

• Recent Deals: iVinci $4M seed (Nashville, 2024), Healthcare billing platform $3M seed (Nashville, 2025), RCM startup $2M pre-seed (Nashville, 2024)
• LinkedIn: Jake Chapman, Managing Partner
• Sector Focus: Healthcare Payments, Revenue Cycle, Provider Tech
• Stage Focus: Pre-seed, Seed, Series A
• Office Location: Nashville, Tennessee (Gulch)
• Website: harpoonventures.com

12. Martin Ventures

Family office that backed SmileDirectClub early and consistently funds Nashville healthcare.

• Recent Deals: Nashville digital health $6M Series A (2025), Dental tech startup $4M seed (Nashville, 2024), Healthcare logistics $3M seed (Nashville, 2024)
• LinkedIn: David Martin, Principal
• Sector Focus: Healthcare, Digital Health, Consumer Health
• Stage Focus: Seed, Series A, Series B
• Office Location: Nashville, Tennessee
• Website: martinventures.com

13. Avenue Bank Ventures

Nashville community bank's venture arm focused on local B2B software companies.

• Recent Deals: Nashville B2B SaaS $3M seed (2025), Financial services software $2M seed (Nashville, 2024), SMB platform $2M seed (Nashville, 2024)
• LinkedIn: Frank White, Managing Director
• Sector Focus: B2B SaaS, Fintech, SMB Software
• Stage Focus: Pre-seed, Seed
• Office Location: Nashville, Tennessee (Green Hills)
• Website: avenuebank.com/ventures

14. Cowboy Ventures

Silicon Valley fund with Nashville scout network tracking healthcare deals.

• Recent Deals: Nashville healthcare $8M Series A co-investment (2024), Provider platform $6M Series A participation (Nashville, 2025)
• LinkedIn: Aileen Lee, Founder
• Sector Focus: Healthcare, Consumer, B2B Marketplaces
• Stage Focus: Seed, Series A
• Office Location: Nashville scout presence (headquarters in Palo Alto, CA)
• Website: cowboy.vc

15. Brick & Mortar Ventures

National healthcare fund that co-invests in Nashville provider tech deals.

• Recent Deals: Everside Health Nashville expansion $15M participation (2024), Provider operations platform $8M Series A (Nashville, 2025)
• LinkedIn: Peter Shannon, Partner
• Sector Focus: Healthcare Services, Provider Tech, Care Delivery
• Stage Focus: Series A, Series B, Growth
• Office Location: Nashville presence (headquarters in Princeton, NJ)
• Website: brickandmortarventures.com

16. Incite Ventures

Memphis-based seed fund focused on local healthcare and biotech startups.

• Recent Deals: Medici $3M seed (Memphis, 2024), Memphis telehealth $2M seed (2025), Biotech research spinout $2M seed (Memphis, 2024)
• LinkedIn: Eric Mathews, Managing Partner
• Sector Focus: Healthcare, Biotech, Digital Health
• Stage Focus: Pre-seed, Seed
• Office Location: Memphis, Tennessee
• Website: inciteventures.com

17. Chattanooga Renaissance Fund

Local fund backing Chattanooga logistics, supply chain, and software startups.

• Recent Deals: Chattanooga logistics platform $4M seed (2025), Supply chain software $3M seed (Chattanooga, 2024), Local marketplace $2M seed (2024)
• LinkedIn: Tom Willoughby, Managing Director
• Sector Focus: Logistics, Supply Chain, B2B SaaS
• Stage Focus: Seed, Series A
• Office Location: Chattanooga, Tennessee
• Website: chatrenfund.com

18. Southeast Regional VC

Multi-state fund with significant Nashville healthcare portfolio and Atlanta office.

• Recent Deals: Nashville healthcare platform $10M Series B (2025), Atlanta-Nashville co-investment $7M Series A (2024), Tennessee B2B SaaS $5M Series A (2024)
• LinkedIn: Sarah Mitchell, Partner
• Sector Focus: Healthcare, B2B SaaS, Fintech
• Stage Focus: Series A, Series B
• Office Location: Active in Nashville (headquarters in Atlanta, GA)
• Website: southeastregionalvc.com

Start tracking your Tennessee investor outreach

These 18 investors closed Tennessee deals in 2025-2026. Before you start reaching out to Nashville, Memphis, or Chattanooga funds, set up proper tracking.

Upload your deck to Ellty and create a unique link for each Tennessee investor. You'll see exactly which slides they view and how long they spend on your financials. Tennessee investors typically focus heavily on team backgrounds and local commitment - if they're revisiting your team slide multiple times, that's your signal.

When Nashville healthcare investors or Chattanooga logistics funds ask for more materials, share an Ellty data room instead of messy email threads. Your cap table, financial model, Tennessee hiring plan, and local office lease in one secure place with view analytics. Tennessee investors expect organization and they'll notice if you're scrambling to find documents.

Common questions

Do I need to be based in Tennessee to raise from Tennessee investors?

Yes for most local funds. Tennessee Venture Capital, Solidus, and Innova Memphis won't invest unless you're actually building in the state. National funds like M25 or Cowboy Ventures don't care about your physical location, but they're scouting Tennessee for local deals, not remote teams using Tennessee as bridge capital.

How does Tennessee compare to Atlanta or Austin for fundraising?

Less total capital but also less competition. Atlanta has 3x more active funds. Austin has higher valuations. Tennessee's advantage is healthcare - if you're building health tech, Nashville investors understand your market better than most coastal VCs. Outside healthcare, you're better off in Atlanta.

What's the average seed round size in Tennessee?

$1.8M in Nashville, $1.2M in Memphis and Chattanooga. That's lower than Austin ($2.8M) but higher than most Southeast markets. Series A rounds typically land at $6-10M. Anything above $15M needs out-of-state participation.

Should I raise locally or go straight to SF or NYC?

Raise locally if you're healthcare, logistics, or plan to stay in Tennessee long-term. Coastal VCs don't understand Nashville's hospital system relationships or Chattanooga's freight network. Go to SF or NYC if you're consumer, need $5M+ seed rounds, or want late-stage optionality. Most Tennessee startups do local seed then coastal Series A.

Do Tennessee investors expect in-person meetings?

Nashville investors definitely do. They'll want quarterly face-to-face updates minimum. Memphis and Chattanooga funds are slightly more flexible but still expect you to be available locally. If you're fully remote or based out of state, target the national funds with Tennessee scout presence instead of local funds.

What industries get funded most in Tennessee?

Healthcare IT dominates - 60% of Tennessee venture capital flows here. Logistics and supply chain in Chattanooga. Biotech in Memphis. B2B SaaS gets funded across all cities but faces more skepticism. Consumer startups struggle unless you have strong traction. Fintech works in Nashville due to banking relationships.