Supporting investment in Wisconsin’s young companies
Wisconsin’s Qualified New Business Venture (QNBV) Program offers incentives for investment in early-stage Wisconsin businesses with the potential for significant economic impact and job growth. This program creates mutually beneficial outcomes for investors, businesses and Wisconsin’s economy.
How it works
Early-stage businesses developing innovative products, processes or services may apply to the Wisconsin Economic Development Corporation (WEDC) for QNBV certification. When an angel investor, angel investment network or Qualified Venture Fund (QVF) invests in a QNBV company, the entity making the investment is eligible to receive a tax credit equal to 25% of the amount of the equity investment.
To achieve QNBV certification, companies must meet the following criteria, among others:
- Headquartered in Wisconsin
- At least 51% of employees and payroll based in the state
- Have fewer than 100 employees
- In operation for 10 consecutive years or less
- Offer significant potential for increasing jobs or increasing capital investment in Wisconsin
- Have not received aggregate private equity or venture capital investment of more than $10 million
With a focus on technological advancement, QNBV certification does not apply to companies primarily engaged in real estate development, insurance, banking, lending, lobbying, political consulting, professional services, wholesale or retail trade, leisure, hospitality, transportation or construction (except the construction of power production plants that derive energy from a renewable resource).
Claiming investment tax credits*
Businesses can receive up to a total of $12 million in tax-eligible cash equity investment (for up to $3 million in tax credits for the investors). There is no limit on the amount of credits investors can claim.
*The Wisconsin Economic Development Corporation (WEDC) does not endorse the quality of management or the potential for earnings for the certified Qualified New Business Venture. Furthermore, the Qualified New Business Venture’s use of the phrase “certified” and/or “qualified new business venture” is not a recommendation or endorsement of the investment or the company by WEDC.
**Certification of a fund by WEDC is not an endorsement of the quality of management of that fund. WEDC is not liable for damages or losses to an investor.