Neis notes the median VC fund in the United States is $57 million, while that drops to around $37 million in areas outside the coasts.
“I don’t know exactly what our median is, but it’s probably half that,” Neis said. “And so, we have a lot of very small funds, which all add to the ecosystem, all help, you know, move things forward. But the biggest ideas that the venture capital industry backs often need tens of millions of dollars.”
While the smaller funds in Wisconsin, whether that be $10 million or $20 million, can help get businesses started, “they’re not in a position to pull together the large kind of syndicate necessary for the biggest ideas to advance.”
The conversation highlights the impact of Venture Investors, the state’s oldest and largest venture firm, which focuses on innovation in the health care industry largely across Wisconsin and Michigan.
“The last few funds have been in the $70 million, $80 million ballpark, but you know, with syndication, we’ve raised a lot for our companies over time,” he said.