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Inside Wisconsin
Tom Still, president of the Wisconsin Technology Council, discusses the negative impact the financial regulation overhaul bill could have on the early stage investment market.
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WAN's Guide to Early Stage Financing
Looking for start-up capital? WAN has put together a list of resources for entrepreneurs who are seeking financing.
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WisBusiness.com: The Show
See the latest updates on business and investing in Wisconsin. |
WAN Members
Investor-members
Appletree Capital
Baird Venture Partners
Brady Corporation
Capital Midwest
Capvest Venture Fund
Central Illinois Angels
Central WI Business Angels
Continuum Investment Partners
DaneVest
Daycholah Capital
Golden Angels Network
Illinois Business & Investors Forum
Kegonsa Partners
Lake Superior Angel Network
Marshfield Investment Partners
Mason Wells
MDC Venture Debt Fund
NEW Capital Fund
Peak Ridge Capital
Origin Investment Group
Pennies from Heaven
Phenomenelle Angels Fund
Promega Corporation
Silicon Pastures
St. Croix Valley Angel Network
Stateline Angels
Successful Entrepreneur Investors
Triathlon Medical Ventures
Venture Investors
Wisconsin Investment Partners
Women Angels, LLC
Informal networks: 1
Advisory Committee
Sec. Lorrie Keating
Heinemann (Chair)
Dept. of Financial Institutions
Sec. Dick Leinenkugel
Dept. of Commerce
Tim Keane
Golden Angels Network
Richard Leazer
Wisconsin Investment Partners
John Neis
Venture Investors
Tom Still
Wisconsin Technology Council
David Ward
NorthStar Economics WAN Staff
Joe Kremer
Director
Kate Kubsch
Intern |
Newsletter Sponsors
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| Minnesota recently wrapped up a long, contentious effort to enact an early stage investment tax credit. With many investments occurring across the I-Q Corridor, defined as Illinois, Wisconsin and Minnesota, this is a welcome incentive for the entire early stage investment community. Similar to Wisconsin, Minnesota's investment tax credit is 25 percent of an investment made in a qualified business. Minnesota also took an important step towards the creation of an I-Q Corridor-wide investment tax credit market by making its credit "refundable," meaning investors from any state may claim the credit. To learn more about Minnesota's investment tax credit, follow this link. |
 Changes sought in federal legislation affecting angels
A bill being debated in the U.S. Senate Committee on Banking, Housing and Urban Affairs has caused major concerns within the early stage investment community. As drafted, the bill dramatically alters the way angels and entrepreneurs go about financing start-up companies. It changes the standards for who is an "accredited" angel, institutes Securities and Exchange Commission filing requirements for start-ups, and changes the regulation of investments across state borders. Read Tech Council President Tom Still's recent column here.
The Angel Capital Association is leading an effort to modify the bill. An aide to U.S. Sen. Herb Kohl, D-Wis., a member of the banking committee, told the Tech Council the senator is following the legislation closely and recognizes the importance of a vibrant angel community. For more information on proposed changes to the bill, follow this link to the ACA's website. |
Start-ups, not bailouts for increased employment
In a recent article Thomas Friedman promotes the idea the federal government should be helping start-ups rather than providing financial assistance to large corporations. Friedman's reasoning is start-up companies create jobs while large corporations do not. Research out of the Kauffman Foundation showed that most new jobs created between 1980 and 2005 were from companies that were five years old or less. He contends it is important to look at improving U.S. schools and recruiting talented individuals from overseas in order to find the creative and inspired risk-takers to produce these start-up companies. To read Friedman's article, follow this link. |
UW professors commercializing innovations
UW-Madison professors are using their knowledge and discoveries to start new businesses. UW-Madison professor Guri Sohi is using his research in the computer sciences to start an innovative business that will provide software development tools and services for companies needing to write programs for computers with multiple processors.
Jerry Yin, a UW-Madison genetics professor, is using his research with fruit flies to develop alternative methods of screening drugs for neurological disorders. Sohi and Yin were among semi-finalists in the Wisconsin Governor's Business Plan Contest. To learn more about these plans and others follow this link. |
Wisconsin is nation's second-leading state in organics
Wisconsin has prided itself in having a diverse farm economy. A new report out of the USDA's National Ag Statistics service shows Wisconsin as the second largest state in organic farming behind California. Wisconsin has a total of 1,222 organic farms which have totaled $132.8 million in sales. The majority of total organic sales in Wisconsin came from organic milk. To read more about Wisconsin's organic farming click here.
Attend the Wisconsin Entrepreneurs' Conference in June to hear about how entrepreneurs are finding opportunities in food start-ups. Follow this link for more information about the conference. |
CleanTech Open informational meeting May 11
 Cleantech Open is the world's largest clean technology business incubator and competition for startup clean and green technology companies. Recently expanded to include the Midwest, an informational meeting will be held on May 11 in Madison, WI at UW's Grainger hall. Please follow this link for more details on the meeting and the contest.
Note: there is a $300 non-refundable application fee to enter the contest, the informational meeting is free thanks to a sponsorship from WARF. |
I-Q Corridor deals, acquisitions and exits
Stratatech raised $3 million in debt and equity, read more.
Echometrix LLC raised $250,000 from individual angel investors.
Imago acquired for $6 million by Ametek, read more.
Other investment news:
Exact Sciences set for second offering, read more.
Six start-ups certified eligible for state tax credits, read more. Cellectar completes patient enrollment in Phase 1 cancer trial, read more. Cellular Dynamics International named in MIT top 10 technologies list, read more. Venture capital down in first quarter, read more. Wisconsin SBA-backed loans up in March, read more. Orbital Technologies secures $50 million NASA contract, read more. NanoAffix Science LLC licenses nanotechnology from UWM, read more. More early stage market and investment news on the WAN newsroom web page, www.wisconsinangelnetwork.com/newsroom. |
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In Closing
The I-Q Corridor became better connected by Minnesota's passage of a 25 percent refundable, early stage investment tax credit. A refundable credit may be claimed by any investor, including non-residents. Wisconsin took a similar step in 2009 by amending its investment tax credits to allow investors in qualified funds to transfer/sell credits, though individual angels do not yet have this option. If all I-Q Corridor states (Illinois, Wisconsin and Minnesota) offered a refundable investment tax credit for all investors, the I-Q Corridor would become the first region in the nation to offer a unified, investment tax credit. Such a move would gain nationwide attention, expand the pool of early stage investment dollars and encourage regional collaboration.
Please share eVestor with others; if you're not on our e-mail list, click here to join.
Joe Kremer, director
Wisconsin Angel Network
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