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50 South updates committee on North Dakota Growth Fund: 29 companies backed and outside capital mobilized
Summary
Cody Furst of 50 South reported the North Dakota Growth Fund had made new commitments and that portfolio funds and co‑investments had directed roughly $164.7 million into North Dakota companies, while reporting active dealflow across the state.
Cody Furst of 50 South Capital updated the Legacy Fund Advisory Committee on activity in the North Dakota Growth Fund, the state’s venture and private‑equity vehicle. Furst said the fund’s work since 2021 has produced a portfolio of fund commitments and direct co‑investments that now touch companies statewide.
Furst told the committee the state’s total Growth Fund commitments reached $250 million after the 2025 legislative appropriation and that 50 South had committed the fund into eight funds and made four direct co‑investments. He said 50 South’s portfolio and the managers it backs have invested more than $164.7 million into 29 North Dakota companies, turning the state’s $121.5 million of commitments into a larger pool of capital for in‑state firms.
The committee heard details on three 2025 fund commitments. Furst described an M25 seed fund that focuses on very early‑stage investments and operates a co‑investor network; Broadwater Capital, a Fargo‑based growth equity manager focused on more mature companies; and Longwater’s SBIC private credit vehicle. He said the additional 2025 capital allows 50 South to “double down” on strategies that are performing and to add complementary vehicles such as private credit and early‑stage venture that increase the breadth of available capital.
Furst highlighted portfolio company stories to illustrate impact: 3 Farm Daughters (Grand Forks), which is expanding retail distribution and will appear on national television; Presscient AI (Hatton), a health‑tech startup that relocated founders back to North Dakota and joined local programming; PaveWise (Bismarck), a construction‑tech company that raised a recent round; and Cypress Rail (Grand Forks), which is expanding operations.
Committee members asked about governance and safeguards. Representative Bosch asked whether 50 South has experienced political pressure about investment decisions; Furst said “not at all.” Representatives and senators asked about pacing and ticket size limits that are set in statute and the IPS (10‑year pacing schedule and per‑investment caps of $10 million with exceptions for $25 million). Furst and others said the program is designed to avoid adverse selection and to work as a capital multiplier that brings outside LP capital into North Dakota.
Furst closed by noting ecosystem work—events, student engagement and accelerator programs—designed to increase deal flow and founder readiness in the state. The committee asked RIO staff to review the IPS language and pacing schedule and to return recommendations if the board wishes to consider different limits for different fund vehicles.
