October 2009 
In This Issue
Optimism on the Rise among Industry Executives
Changing Valuation in a Changing Economy
CAT TEC II
Conveying Passion to Strengthen Presentations
Deals, Acquisitions and Exits
Upcoming Events

Early Stage Symposium

November 10 - 11, 2009 
Monona Terrace, Madison
 
Join 400 entrepreneurs, investors and professionals for a conference dedicated to early stage capital.
 

WisBusiness: The Show

The Wisconsin Technology Council is a partner in a new show reporting on Wisconsin business news and issues.

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
 
WAN Staff
Joe Kremer
Director
Emily Jones
Intern 

Newsletter Sponsors

DFI
learn more about ePlan click here 
Some of the Midwest's most promising innovators in technology will be presenting November 10-11 during the Wisconsin Early Stage Symposium, which is being held side-by-side with the MidAmerica Healthcare Venture Forum. Despite an overall down market for entrepreneurs, this is a chance for companies seeking early stage investments to pitch their companies to investors. In all, 40 companies from Wisconsin and other Midwestern states will be presenting, either in the WAN track or the Elevator Pitch Olympics. To learn more about the conference and the presenting companies, visit this link
 
WAN investor-members, review presenting company materials on the Deal-flow Pipeline.  Not an investor-member and interested in joining?  Follow this link to membership information.

WisBusiness.comOptimism on the Rise among Industry Executives

More of Wisconsin's technology industry executives are optimistic about the state's economy, according to a recent survey conducted by the Wisconsin Technology Council in partnership with WisBusiness.com and the Luminis Group. Between the second and third quarters, there was a 10.5 percent increase in the number of executives who believe Wisconsin's economy will get better in the next year, raising the total to 55 percent. Read more about the results of the survey here.

ModelChanging Valuation in a Changing Economy

Two angels talk about the need for entrepreneurs to adapt
Although it can be hard to compromise, it can also be very necessary. This is especially true for entrepreneurs searching for initial investors in today's economy. Valuations have declined and investors are warier about opening their checkbooks. An idea that may have garnered interest a few years ago may not get any attention from investors today.
 
However, start-ups can still find investors if they are willing to adapt their approach. Follow this link to an interview with two of the nation's leading angel investors discussing the recent trends in valuations and offering advice to entrepreneurs and investors about how to succeed in today's economy.

FindingsCAT TEC II Features Workshops, Networking

October 29 - Chicago
CAT TEC II, a program designed to help bring together technology transfer professionals with early stage investors, will be held Thursday, October 29 in Chicago. Program highlights include a hands-on workshop on the process of due diligence and a concluding networking reception. Visit this link to learn more about the program and to register.  The program is hosted by the Midwest Research University Network, the Illinois Business & Investor Forum, the Illinois Technology Association and the Midwest co-Investment Network, a WAN initiative.

WisBusiness.comConveying Passion to Strengthen Presentations

An entrepreneur can have a great idea, a sound business plan and an informative presentation to give to investors; however, that's only the start. When pitching a start-up to a room of investors, there are other factors at work that determine whether a deal will happen. The energy that presenters convey can be the deciding factor in whether a pitch is forgettable or a standout.
 
Richard Sudek, current president of the Orange County Tech Coast Angels, is conducting research to better understand the effect that passion has on influencing angel decisions.  The authors of the study hope that this information will help entrepreneurs strengthen their pitches and avoid missing investment opportunities. Follow this link for more information about the study.

FindingsI-Q Corridor Deals, Acquisitions and Exits

Alice.com, $4 million by undisclosed investors.
Soft Switching Technologies, $2.5 million by undisclosed investors.
Idle Free Systems, $1.3 million by undisclosed investors.
Eso-Technologies, $1 million by DaneVest Fund*, Phenomenelle Angels Fund* and Wisconsin Investment Partners*.
Stemina Biomarkers, $1 million by DaneVest Fund* and Phenomenelle Angels Fund*.
Michelle's Miracle, $750,000 by Phenomenelle Angels Fund*, Fisher Properties and Cherry Growers Inc., read more.
   *WAN investor-member and/or Midwest co-Investment Network member
 
Other investment news:
Prodesse acquired for $60 million, read more.
Inviragen merges and raises $15 million, read more.
Third quarter venture capital investments down, read more.
Investments in U.S. venture capital markets plunge, read more
 

EventsUpcoming Events

WIN-Centergy The State of Angel Investing - October 27, Wausau
Wisconsin Early Stage Symposium - November 10-11, Madison
MidAmerica Healthcare Venture Forum - November 10-12, Madison
Midwest Clean Tech 2009 - November 23-24, Chicago
University Startups Conference 2009 - December 2-4, Washington, D.C.
2010 Wisconsin Entrepreneurs' Conference - June 8-9, 2010, Milwaukee
In Closing

The changing dynamics of the early stage financing market have led to much frustration among entrepreneurs.  Raising capital is difficult, takes more time than anticipated and valuations are lower than expected.  The best strategy for entrepreneurs is to understand the market as much as possible and to be prepared for the realities of a down economy.  One such reality is a valuation is only "low" if other investors are willing to pay more.  Learn more about the early stage financing market by stepping through WAN's guide to raising capital.

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 joe kremer's signature

Joe Kremer, director
Wisconsin Angel Network
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