The Wisconsin Portfolio was released yesterday, offering an in-depth look at 2024 early-stage investing activity in the state.
The full release comes after the Tech Council last month shared some early figures from the report, showing the state last year saw about $374 million in early-stage capital raised, the smallest total since 2018. That’s under the prior year’s total of $490 million and well below the recent peak of $869 million in 2021, a standout year for investment in Wisconsin and nationally.
Last year’s tracked deals included 61 different investment groups and funds, including firms from at least 13 other U.S. states and the UK, Singapore and the Philippines.
Tech Council Investor Networks Director Joe Kremer notes the 42 out-of-state investors contributed to 21 funding rounds that raised $292 million for companies based in Wisconsin. That accounts for 78% of all capital tracked for last year in the state.
“This year’s report also highlights Wisconsin’s need to attract more mid-sized venture funds capable of filling the $5M–$15M funding gap — enabling startups to scale, create jobs, and sustain strong investor returns,” Kremer said in the report.
While last year’s total has fallen from recent years, report authors note it “still reflects a robust year of activity” as the average deal size was $4 million. The median deal size for 2024 was $1 million, which suggests “healthy fundraising” happening at earlier-stage businesses.
Authors also note the top 10 largest deals accounted for 70% of the state’s total investment last year, illustrating how a small number of overall deals can have a large impact on the annual total.
Meanwhile, Tech Council President Tom Still writes that Wisconsin “needs to catch up to its neighbors” on measures of venture capital activity, noting the state consistently lags behind most other Midwest states. Though the coasts still dominate the VC world, he also notes Ohio and Michigan have made moves to establish larger “funds of funds” to support companies in those states.
While Still touts Wisconsin’s efforts in this space — pointing to the Qualified New Business Venture tax credit program, the Badger Fund of Funds and Wisconsin Investment Fund — he also notes eight- and nine-figure deals remain elusive in the state.
“That’s what is happening in other Midwest states on a more regular basis, even if the coastal leaders maintain their hefty lead,” he wrote.
See the report and an earlier story on its findings.