TLDR:
Key Points:
- Tennessee changed its Department of Commerce and Insurance’s securities rules to exempt VC firms from full registration as investment advisors.
- Knoxville-based Market Square Ventures, led by five GPs with diverse experiences, launched in 2024.
In late 2023, Tennessee made changes to its securities rules to exempt venture capital firms from full registration as investment advisers. This move was seen as a way to enhance the state’s VC ecosystem. In the wake of this rule change, five General Partners launched Market Square Ventures in Knoxville at the beginning of 2024. The GPs of the fund bring a wide range of experiences to the table, including investors, engineers, and former executive roles in various industries.
Market Square Ventures will focus on investing in Southeast and Appalachian-based startups that are tech or tech-enabled. While the size of the fund has not been disclosed, they are targeting a “median sized fund.” The fund has already made investments in three startups, including Authentrics.AI, VetVerifi, and Daily Crunch. The startup scene in Knoxville, while smaller compared to other regional players, boasts an impressive entrepreneurial ecosystem with a focus on sectors like clean energy and technology.
