At the July 15 meeting of the Wisconsin Technology Council, the State of Wisconsin Investment Board (SWIB) previewed a white paper on "The Wisconsin Venture Capital Landscape." A main point in the paper is company valuations are lower than they would be if they were located in a market with more investment capital. While Wisconsin lacks a "venture capital sub-culture," the report asserts the state is closer than ever to forming the critical mass needed to create a self-sustaining, venture capital market. The Wisconsin Technology Council and Wisconsin Angel Network are highlighted in the report as having a significant, positive impact on the developing market.

Download the white paper here.

The Midwest Co-Investment Network (MIN) was created by the Wisconsin Angel Network and the Illinois Business and Investors Forum to provide an easy way for investors to co-invest in deals together. By establishing and enhancing relationships between investors and providing the infrastructure, the MIN is an impetus for deal sharing.

Deal sharing between investors is vital to entrepreneurial financing because larger investment rounds often cannot be filled by one group alone. Typically referred to as the "funding gap," investments between $1-5 million are difficult to complete. $1 million is the assumed ceiling for angel networks and funds while $5 million is where most venture firms begin taking interest.

For more information on the Midwest Co-Investment Network or to join, contact Joe Kremer, WAN director, at jkremer@wisconsinangelnetwork.com.

The Deal-flow Pipeline (DFP), launched June 2005, fast became the first successful, publicly available on-line collection of investment deals. More than 700 entrepreneurs created accounts and uploaded more than 200 executive summaries, allowing WAN's membership of 28 angel networks and early-stage funds access to the largest pool of live deals.

A new platform, Angelsoft, has replaced the current DFP. Angelsoft connects more investors and entrepreneurs, enables investors to easily collaborate on deals and helps link investors around the I-Q Corridor.

New features include:

• Uploading of supporting documents, such as a full business plan
• Standardized executive summary used by 450 angel networks
• Easier communications between investors and entrepreneurs
• Sharing of deal information between investors
• Administrative tools designed specifically for angel networks

Entrepreneurs looking for equity financing login here and upload your information. It is fast and free!

Investors interested in gaining access to the new Deal-flow Pipeline please contact Joe Kremer, WAN director, at jkremer@wisconsinangelnetwork.com.

The Wisconsin Technology Council's board meets quarterly to discuss a wide range of topics, including policy initiatives. At the last board meeting, held July 15 in La Crosse, the Tech Council's four policy committees met to discuss recommendations designed to offer a roadmap for tech development in Wisconsin. These recommendations are published every two years as "white papers" and often result in legislation and budgetary items.

The Investment Capital committee is developing recommendations that include the following improvements to the state's early-stage tax credit program:

• Increase the pool of credits
• Increase the aggregate cap
• Include a provision to take advantage of federal New Markets Tax Credits
• Eliminate the capital gains tax on investments rolled into qualified new business ventures.

The Investment Capital committee is also working on other recommendations for policy improvements to increase entrepreneurs' access to capital. The recommendations from all committees will be released in the Tech Council's white papers this fall.

Drawing from the successes of last year's first annual event, the 2008 Resource Rendezvous returns this year to bring together researchers, grant writers, business leaders and other professionals. The event will focus on needs and funding opportunities from federal agencies and how to secure more contracts.

Confirmed speakers include the senior advisor to the undersecretary for the U.S. Department of Homeland Security, the special assistant for innovative research technology transfer for the Defense Advanced Research Projects Agency (DARPA), representatives of the Telemedicine & Advanced Technology Research Center, and representatives of In-Q-Tel, which finances R&D projects for the Central Intelligence Agency. Follow this link to more information.

$200,000 in one deal was reported to WAN in the past month.

Health Innovation Technologies, Inc., $200,000 by MDC Venture Debt Fund*
  *WAN Investor-member

Mirius is being acquired by Roche for $125 million, read more.
Fiserv sold 51% of Fiserv Insurance Solutions for $510 million, read more.
GTI Diagnostics sold a majority stake to a Ohio-based fund, read more.

Other Investment News:
TomoTherapy in acquisition talks with Japanese distributor, read more.
Virent Energy Systems mentioned in the Economist, read more.
Rexnord Holdings Inc. filed for an IPO, read more.
COSS of Mequon is merging with iPipeline, read more.
Roadrunner Transportation Services filed for an IPO, read more.

Are we missing a deal or other investment news? E-mail info@wisconsinangelnetwork.com

WIN-Milwaukee Comic Wonder   August 14, Milwaukee
WIN-Madison Microsoft, Goggle and beyond   August 26, Madison
Resource Rendezvous   August 28, Marshfield
NASVF National Conference   Sept. 10-12, Detroit
I-Q Corridor Investors' Forum - Video conference  Sept. 18, Madison
I-Q Corridor Investors' Forum - Video conference  Sept. 18, River Falls
WIN-Milwaukee Successful Entrepreneurs Investors   Oct. 9, Milwaukee
Wisconsin Early Stage Symposium   November 5-6, Madison
I-Q Corridor Investors' Forum - Video conference   Nov. 13, Madison
I-Q Corridor Investors' Forum - Video conference   Nov. 13, River Falls