Investments in young, Wisconsin-based companies by angel and venture capitalists and other equity investors totaled $490.2 million in 2023, down from the previous year’s total of $640.2 million but still the third-highest investment total on the books and also consistent with overall national trends.
Research by the Wisconsin Technology Council for its annual “Wisconsin Portfolio” report captured 107 separate deals involving more than 100 unique funds, networks and accelerators, including 73 out-of-state investors taking part in 27 of the 107 rounds.
The top 10 deals by dollar size accounted for nearly three-quarters of the dollar total, with VBA Software, SHINE Technologies, Bend Health and Type One Energy collectively accounting for nearly $285 million of the $490.2 million total. However, the “median” deal among the 107 deals was $750,000. That shows many young companies are a part of the mix when it comes to attracting angel and venture capital.
Data collected by the Tech Council Investor Networks was consistent with national trends during what was considered a “down year” coast to coast.
Over the nine-year period beginning in 2015, Wisconsin early stage companies have raised nearly $3.5 billion – and more than $2 billion in the last three years alone. There were $209.5 billion in early stage investments in 2015, $276.5 million in 2016, $231 million in 2017, $300.7 million in 2018, $454.4 million in 2019, $483.6 million in 2020 and nearly $869 million in 2021.
The early stage investment outlook for 2024 in Wisconsin continues to lag for a mix of reasons, with trends in the first two quarters of the year reflecting a tight deal environment.
“Wisconsin continues to attract more angel and venture capital, including a rising share of money from outside the state, but more work must be done to recognize the state’s full potential,” said Tech Council President Tom Still. “The recent deployment of the Wisconsin Investment Fund, which is half private dollars and half federal money will help, but we need to do more to keep pace with our Midwest neighbors.”
Using public reports, filings, proprietary investor surveys and more, the Tech Council tracked a total of $490,212,800 in 107 companies. Average round size stood at just under $4.6 million in 2023, shy of 2021’s record of $6.2 million but still the third-highest on record. The Tech Council identified a funding “dead spot” between $5 million and $9 million, with only four companies raising money that fell into that range. Fifty-seven companies raised less than $1 million; 36 companies secured funding between $1 million and $4 million; and 10 companies secured $10 million or more. Other trends of note:
- Of the 107 deals tracked, 54 were in the Madison area, 37 were in southeast Wisconsin, six in northeast Wisconsin, four in the south-central Wisconsin, with the remainder in other parts of the state.
- Healthcare and information technology deals represented about two-thirds of the total number of investments and nearly two-thirds of all dollars invested. Energy deals were on the rise, as were investments in advanced manufacturing and agriculture.
- Funding rounds led by female founders and CEOs remained low at 18%; however, when looking at management teams, women are represented in two-thirds of the companies that raised money in 2022.
“With the support of an ever-increasing early stage investment community, entrepreneurial activity will continue to increase statewide – especially as some of the overall economic conditions affect the sector begin to sort themselves out,” said Joe Kremer, director of the Tech Council Investor Networks.
The 16th annual Wisconsin Portfolio report is online at www.wisconsintechnologycouncil.com and available in a print magazine format for those who want to order copies through julie@wisconsintechnologycouncil.com. The print version includes all charts and features.
Thank you to our sponsors: AT&T, Baird Capital, Exact Sciences, Golden Angels Investors, HealthX Ventures, Husch Blackwell, Madison Development Corp., State of Wisconsin Investment Board, University Research Park, UWM Research Foundation, Venture Investors and the Wisconsin Economic Development Corp.
The Tech Council Investor Networks are among major Tech Council programs and projects. They include the Tech Council Innovation Network, the Governor’s Business Plan Contest, the Wisconsin Entrepreneurs’ Conference, the Wisconsin Tech Summit, the Wisconsin Early Stage Symposium and the SWIFT Entrepreneurs project. To learn more or to join TCIN, visit: http://wisconsintechnologycouncil.com/investors/membership/Bottom of Form
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