The U.S. Economic Development Administration has designated Wisconsin as a Regional Technology Hub for personalized medicine and biohealth technology. That designation unlocks up to $75 million in federal funding to power research and development
The launch of the $100 million Wisconsin Investment Fund, the largest public-private investment in startups and entrepreneurs in state history, provides a promising boost to the state’s longstanding commitment to innovation. It also provides another powerful reason for businesses to put down roots in Wisconsin.
Wisconsin’s $50 million investment, with funds from the U.S. Department of the Treasury’s State Small Business Credit Initiative, will be matched by six private venture capital firms. In the fund’s early years, WEDC estimates creating a $500 million impact as companies selected by the funds continue to grow.
“This fund is a win for businesses that will have the support to take their ideas to new heights, and it’s a win for Wisconsin to maintain our position as a competitive leader in business innovation,” Governor Tony Evers said in announcing the fund in late May.
The venture capital firms will match each dollar of public funds with at least one dollar of private money. The state’s returns on these investments will be reinvested into the Wisconsin Investment Fund to generate more capital and fund more emerging Wisconsin companies.
“Wisconsin has always been a leader in bringing great, innovative ideas to the world,” said Missy Hughes, WEDC’s secretary and CEO. “To make those ideas a reality and drive our state’s economy forward, innovators need capital. This public-private effort puts a stake in the ground that Wisconsin is committed to entrepreneurship and innovation.”
The fund will invest in promising companies in technology, health care, agriculture, manufacturing, and other sectors. A major focus will be biohealth, with at least $27 million of the state’s initial investment targeted for that sector.
The U.S. Economic Development Administration has designated Wisconsin as a Regional Technology Hub for personalized medicine and biohealth technology. That designation unlocks up to $75 million in federal funding to power research and development.
The Wisconsin Investment Fund will also provide significant support for diverse businesses and companies located in underserved areas of investment.
HealthX Ventures will receive $15 million of the state’s share to invest. “Wisconsin has a strong health care ecosystem, and this fund will provide great opportunities for health-related startups in Wisconsin seeking to build off of it,” said Mark Bakken, the fund’s founder.
The other private firms receiving part of the state investment are: Venture Investors Health Fund, $12 million; Serra Ventures, $7 million; NVNG Investment Advisors, $5 million; and the Idea Fund of La Crosse, $5 million. A sixth capital management firm will be named soon to handle the remaining $5 million.
“The state has a long and storied history in ag and food, so it is the perfect fit for Serra Ventures’ new fund,” said Tim Hoerr, the Champaign, Illinois-based firm’s CEO and managing partner.
Carrie Thome, managing director and co-founder of NVNG Investment Advisors, was also enthusiastic about the fund’s potential.
“WEDC’s Wisconsin Investment Fund aligns very well with our mission of making Wisconsin’s entrepreneurial ecosystem globally competitive, and we’re looking forward to making meaningful investments in promising startups across the state,” she said.
