Hello There,
Capital can be local in two different ways. A fund can be based in the middle of the country, or an investment can land in a company based there. Those maps overlap, but they are not the same.
Last quarter, companies across the six states tracked by Start Midwest completed nearly the same share of US venture deals as a year earlier, while their share of the dollars fell sharply. Some of that gap is genuine concentration. Some of it is arithmetic—one large round, counted in one quarter, can reset a regional headline.
This month we join Brad Zapp and Rachael Qualls live at 2:00 p.m. ET, then hand you three short reads: a wider map of venture, five reported quarters on one scale, and the documentation behind private-company valuations. This issue is educational and is not investment advice.
A Wider Map of Venture
Where a fund is based, where a company is built, and where a round is financed are related but different facts. In Q2 2026, companies across six Midwest states completed 114 reported rounds—6.0% of the national deal count—carrying 0.90% of reported US funding dollars. Deal share was close to the year-earlier level. Dollar share was not.
The full piece puts five reported quarters on one scale, walks the research on what sits behind a single closed deal, and closes on the structural question a regional statistic never answers: what am I buying, and on what terms?
This commentary is educational and is not investment advice, an offer to sell, or a solicitation to buy any security. VCAFX is a closed-end interval fund designed for long-term investors. It is not a liquid investment. See the important Fund disclosures below and read the prospectus carefully before investing.
Deals Held Up. Dollars Did Not.
Midwest share of reported US totals · Q2 2025 compared with Q2 2026 · six states
That gap does not establish a cause, measure company quality, or predict investment results. It tells us the next question must be more specific than “How much venture capital did the Midwest get?”
The full exhibit puts five reported quarters on one scale and shows how much of any regional headline a single financing can carry.
Source: Start Midwest, July 12, 2026. The publisher draws on Dealroom and covers Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin. Figures are presented as reported and may be revised.
409.AI: Making Private-Company Valuation Workflows Legible
Private markets historically operated around periodic valuations, manual capitalization spreadsheets, and fragmented audit documentation. Founded by CEO Derek Manuge, 409.AI (Spruce Software Inc.) provides a technology-led operating layer for 409A valuations, ASC 718 equity compensation accounting, and ASC 820 portfolio valuations.
Why it matters: Sourcing across a wider map only creates durable value when the underlying securities can be accurately priced and audited.
Spruce Software Inc. (dba 409.AI) was reported as a Connetic Venture Capital Access Fund (VCAFX) portfolio holding as of the Fund’s Schedule of Investments as of July 31, 2026. The company is discussed here for informational and educational purposes to illustrate the private-market infrastructure theme, not as an investment recommendation, endorsement, or indication of Fund or company performance. Operating figures and service descriptions are company-reported and have not been independently verified by Connetic. Fund holdings are subject to change.
Two Reads for the Next Conversation
Both articles were opened and read in full on September 9, 2026, and both are also cited as sources in this issue’s main feature. Summaries are our characterizations of the linked articles. Neither publication evaluates or endorses Connetic, the Fund, or any company named in this issue, and neither is a recommendation. Linked third-party material is provided for education.
