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VC gaining momentum in the Badger State

Venture capital funding, support for startups on the rise in Northeast Wisconsin

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April 21, 2023

WISCONSIN – Venture Capital (VC) – a funding source for business startups originating on the East Coast in 1946 – is continuing to gain momentum in Northeast Wisconsin.

According to the 2022 Wisconsin Portfolio, an annual publication of the Wisconsin Technology Council, the Badger State recorded $868 million in 140 deals in 2021 – exceeding 2020’s amount by $385 million, which was also a record.

Of those 140 Wisconsin’s early-stage companies, 48% of them raised $1 million or more in 2021, a slight decrease from 51% in 2020.

That is up from 43% in 2019 and 38% in 2018.

The report notes overall trends remained year-on-year, with Greater Madison and Southeast Wisconsin accounting for more than 80% of all deals.

A point of highlight was Northeast Wisconsin, which according to the report, more than doubled the number of deals raised by its entrepreneurs – from six in 2020 to 15 in 2021, and that growth is expected to continue.

“This may be the start of a trend for the northeast area of the state, which has deployed many resources dedicated to the development of its startup ecosystem,” the report states. 

Barb LaMue, president and CEO of New North, a regional marketing and economic development nonprofit, recently touched on this topic at last month’s Wisconsin Tech Summit held at Lambeau Field. 

“Our region has seen an increase in business starts and capital-backed deals,” LaMue said. “We credit this to the work of TitletownTech, our companies in the region and our many partners who provide a variety of resources that increase the success level of the founders.”  

A portfolio of startups
Managing Director Jill Enos said TitletownTech (TTT) – which is located in Ashwaubenon’s Titletown District – aims to support and fund early-stage, high-growth startups. 

Enos said the venture capital firm – which was formed out of a partnership between the Green Bay Packers and Microsoft – invests in and partners with founders in industries such as sports, media and entertainment, digital health, agriculture, manufacturing and construction tech and supply chain tech.  

While other companies typically invest in startups a bit more established in their growth, Enos said TTT invests at the early start of business.  

//tbnapp.cdn.bubble.io/f1682105144351x409508931607258900/richtext_content.webpBarb LaMue

“Sometimes we’re some of the first money in,” she said. “Where other firms invest in the third, fourth or fifth round of investments, we feel like we can add the most help in the earliest stage.”  

Though the venture firm looks to work with companies based in Wisconsin, Enos said TTT’s reach stretches across the U.S. and Canada.

She said having access to networks and partnerships early on is one of the biggest challenges for startups. 
 
“With our model, we brought together investors that are mostly companies,” she said. “We deliberately worked with other companies we want to be connected to in the innovation space and that have an interest in the total portfolio we invest in.”
  
Founded in 2010, one startup company within TitletownTech’s portfolio, Enos said, is Fork Farms, which develops indoor, hydroponic vertical farming technology to grow food faster, in less space with less water and electricity. 

The company has grown steadily, and since 2020, Fork Farms has installed more than 1,700 Flex Farms in 43 states and nine countries.

“(Fork Farms) is a unique model in that it’s of a certain size and scale that other companies have not been as successful at,” she said. “We’ve tried to build a model that tends to de-risk, and we try to give a lot of feedback and extra support.”  

Angel investing
Angel investing – investors who provide capital for businesses – is another form of funding for startup companies.  

According to the Center for Venture Research, a research unit of the Peter T. Paul College of Business and Economics at the University of New Hampshire, the angel investor market in 2020 saw an increase in both the number of active investors and the number of investments, as well as a 6% increase in the total dollars invested by angels.

Tundra Angels – a Green Bay-based angel investor network that works with companies throughout the state and country, got its start as part of the Greater Green Bay Chamber’s Economic Development Strategic Plan.

Matthew Kee, manager of Tundra Angels, said the network is meant to connect early-stage startup founders to resources and capital.

Kee said Tundra Angels is now a membership-based group, where members pay an annual fee to access curated venture deals alongside notable VC co-investors, a network of CEOs and executives. 

He said the network also offers the opportunity to advise or coach founding teams bringing breakthrough technologies to market. 
Prior to managing Tundra Angels, Kee said he co-founded a fintech startup that built a software product, went through two startup accelerators and raised venture capital from a Fortune 500 financial technology company.  

Being in the same shoes as many entrepreneurs just starting out, Kee said he knows the challenges startups face, especially one of the first hurdles – how to pitch an idea to investors. 

To combat this, he said he co-founded Upward Initiative, a pitch-coaching firm to help startups get investor attention and funding.  

“Entrepreneurs can have great ideas and the skillset to implement them, but fundraising and marketing are not necessarily in their wheelhouse,” he said. “On the founder side, I know what it’s like to pitch investors in Wisconsin. I am speaking to people like me. The coaching piece is important.”

Accelerators, incubators, events
The entrepreneurial ecosystem doesn’t stop just at investments.

Dozens of programs, events and resources are available throughout Wisconsin to support entrepreneurs in their respective journeys.

Over the last six years, a variety of events – including panel discussions, speakers, networking opportunities, informational meetings and pitch events – have been held in communities throughout the state as a part of “Startup Wisconsin.”

The week-long initiative aims to bring together the state’s startup community, as well as those contributing to the growth of its startup ecosystem.

//tbnapp.cdn.bubble.io/f1682105166016x445773913492775400/richtext_content.webpMatthew Kee

Building upon those efforts, New North hosts local pitch contests in five Northeast Wisconsin counties each year.

LaMue said a strong entrepreneurial ecosystem is vital to the success of the regional economy, and the annual pitch events sponsored by the NEW Launch Alliance – Audible Pitch Event (Brown County), Peninsula Pitch Event (Door County), Accelerate Sheboygan County AccelSC Pitch Event (Sheboygan County), Fast Pitch Event (Outagamie, Winnebago and Fond du Lac counties) and LevelUp Pitch Event (Manitowoc County) – give budding entrepreneurs a leg up.

LaMue said the NEW Launch Alliance was formed to create a more robust and productive entrepreneurial ecosystem across the 18 counties of the New North region – connecting entrepreneurs, mentors, investors, educators, accelerators and other resources.

In addition to these one-time events, a handful of organizations also offer accelerator and incubator programs to help entrepreneurs get a jumpstart in their startup journey.

SCALE (Sheboygan County Accelerator for Learning Entrepreneurship) was launched earlier this year by the Sheboygan County Economic Development Corporation and provides its expertise, resources and services to help spur entrepreneurial opportunities in the Sheboygan County region and beyond.

The 10-week accelerator curriculum focuses on business success.

Up the road in Appleton, Fox Valley Technical College, in partnership with the Wisconsin Department of Veteran Affairs and the Venture Center, is hosting a three-phase program for veterans aimed at helping them launch and grow their own businesses.

The Greater Green Bay Chamber recently welcomed the first cohort into its Build Up accelerator program – a 10-week technology-led entrepreneurial training, mentorship and a framework meant to create a local community of founders to learn from and support each other.

Positive outlook
Kee said he is optimistic about the future of venture capital funding for businesses in Northeast Wisconsin, and the state as a whole.

“We have a history of entrepreneurship here, and people are realizing they can start a tech company here in Green Bay,” he said. “That wasn’t part of the conversation when we were starting out in 2016.” 

Kee said the forward momentum has also been aided by the investment in innovation local companies have made.

“In the last five years, we’ve had an awakening of tech startups and venture capital in Northeast Wisconsin,” he said. “Important parties are in place that are angling themselves toward innovation, which I think is changing the game and the entire outlook. Tundra Angels is riding this wave that has only catalyzed in the last few years… It’s a special place to be right now.”   

Enos echoed Kee’s sentiment.  

“I think the future looks incredibly bright,” she said. “People have the confidence to start new companies, and when we can connect them to world-class resources, it creates an incredible place to be. Seeing companies building with us and having success in the market feels great to see we’re on the right path.”

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