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Early Stage Symposium
Join 400 entrepreneurs, investors and professionals for a conference dedicated to early stage capital.
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Update on Investing
On-demand video
Joe Kremer, WAN director, reviews the current state of early stage investing in Wisconsin.
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WAN Members
Investor-members
Appletree Capital
Badger AgVest
Baird Venture Partners
Brady Corporation Capital Midwest
Capvest Venture Fund
Central WI Business Angels
Continuum Investment Partners
DaneVest
Daycholah Capital
Golden Angels Network
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
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Newsletter Sponsors
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| Following the trend set earlier in the year by the venture capital market, the national angel investment market is beginning to tighten. Until recently many angel investors were still making investments and feeling very positive about the future. Now, even the most optimistic angel investors are starting to take pause; follow this link to an example. Entrepreneurs seeking capital need to adapt their financing strategies and take advantage of opportunities to connect with investors.
In November, about 20 early stage companies will be presenting to investors and other attendees at the 2009 Early Stage Symposium. Registration is now open, follow this link to more information and to reserve your spot at Wisconsin's premier conference for early stage financing. This year's symposium will be held side-by-side with the annual MidAmerica Healthcare Venture Forum, which draws investors from 15 states. |
 Lessons from the Roundtable
Resources for entrepreneurs discussed at WAN roundtable
This month's roundtable discussed free and inexpensive resources for start-ups. For entrepreneurs seeking one-on-one assistance creating a business plan and strategy, the many SBDCs around Wisconsin can provide free consulting and low cost classes. Follow this link to more information on Wisconsin's SBDCs.
An important aspect to business planing is knowing the market, its segments and how best to target customers. The Wisconsin Innovation Service Center, part of the SBDC system, offers marketing research at very reasonable prices. More information on the WISC can be found at this link.
Special thank you to the Roundtable's sponsor, MG&E. |
Valuation: The Berkus Method
How investors calculate what a start-up is worth Valuation is one of the most contentious issues between entrepreneurs and investors. When it comes right down to it, a firm's early stage valuation is often more of a "gut feeling" versus a number calculated from financials and comparables. Follow this link to a white paper by David Berkus of the Tech Coast Angels on traditional valuation methods along with his personal method that follows this simple calculation:
- Good core idea/technology: $500,000
- Good management in place: $500,000
- Existing strategic alliances: $500,000
- Finalized product and buy-in by early adopters: $500,000
Note of Interest: Prior to the fall of 2008 these numbers were doubled, meaning each of the four conditions netted $1 million in additional valuation. However since October 2008, Berkus has reverted to these numbers, which he first laid out in the 2002 white paper. |
Collaboration not Competition
Recent news articles covered the move to Wisconsin of Minnesota born-and-bred business, VitalMedix. The company relocated to take advantage of Wisconsin's 25 percent early stage tax credits, read more. While Wisconsin welcomes the business and its resulting job creation, the long-term strategy to build the state's economy is to create business, not to nab them from our neighbors.
As Minnesota and Illinois work to pass their own early stage investment tax credits, the Wisconsin Technology Council is promoting the concept of reciprocity for the credits between the I-Q Corridor states. An investment tax credit valid throughout the I-Q Corridor will help build the region's economy and provide another incentive for venture capitalists to make a stopover as they travel between coasts. Read more on I-Q Corridor collaboration in a recent MedCity News article. |
Springboard: All Things Life Sciences Conference
September 30 - October 1, Madison
 Springboard educates, showcases and supports women entrepreneurs as they seek capital and build their businesses. During the upcoming two-day conference, Springboard's Madison Venture Capital Forum will showcase transformative investment-ready technologies being developed by emerging growth life science companies led by women. Follow this link to learn more. |
I-Q Corridor Deals, Acquisitions and Exits
DuBay Ingredients, LLC, $4.25 million by LA Investment Capital, read more.
Advanced Diamond Technologies Inc., $3.5 million by Stateline Angels*, Silicon Pastures* and other investors.
eContractorBids.com, $250,000 by Origin Investment Group*.
*WAN investor-member and/or Midwest co-Investment Network member
Other investment news:
Oshkosh Truck awarded $280-million defense contract, read more.
Quintessence Biosciences awarded $980,000 SBIR grant, read more.
Semba Biosciences Inc. awarded $250,000 loan from state, read more. |
Upcoming Events
BizStarts Milwaukee's Celebration - September 30, Milwaukee
WIN-Madison Extending the I-Q Corridor - October 15, Madison
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In Closing
With investors making fewer deals, entrepreneurs who are seeking capital need to be more prepared than ever. Raising capital is a full-time job, requiring attention and strategic planning in order to have the best possible chance for success. Fewer than five percent of entrepreneurs seeking capital are successful, making it vital to fund raising efforts to put your best foot forward. The Wisconsin Angel Network has online resources and tools to help entrepreneurs prepare and make the best pitch possible, www.wisconsinangelnetwork.com.
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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