ASAP! Wisconsin Angel & Seed Acceleration Program

Overview

Wisconsin’s Act 255 Early Stage Business Investment Program – established in 2005 by the Wisconsin State Legislature and administered by the Wisconsin Economic Development Corporation (WEDC) – has been recognized as a leading national program. The Program supports a critical need to drive new business formation in Wisconsin by incenting investments in, and development of, high-potential opportunities in the state.

Tax credits authorized under the Act require private investment by individual investors or venture capital funds into companies, and have successfully stimulated new angel investment, angel network development, business start-ups and job creation in the state. Over 115 start-up companies have seen investments made with assistance under the Act since 2005 through the end of 2011.

While this program has had a dramatic effect in catalyzing additional investments, more pre-VC-stage risk capital is needed to drive business start-up performance in Wisconsin and achieve parity with the region and nation. The Angel & Seed Acceleration Program (ASAP!) builds on the successful Act 255 early-stage program design and management, compliments WEDC’s strategies to increase the number of entrepreneurs in the state, and can be implemented with minimal cost to taxpayers.

The WEDC’s plan is to work with the Governor and State Legislature to introduce enabling legislation to monetize unused Act 255 tax credits through the upcoming budget process in early-2013 to create ASAP! The proposed structure will not impact tax credits available for individual angel or VC investments. These have proven successful over the years and will continue to be available for investments made into Wisconsin-based companies.

We will posting updates regarding ASAP! as it moves through the budget and legislative process.

For additional information, contact us at ASAP@wedc.org