Wisconsin creates $100 million fund to help new businesses
Wisconsin Governor Tony Evers and the state’s economic development agency have recently unveiled an exciting initiative that is set to make a significant impact on the local startup and entrepreneurial scene. The launch of a groundbreaking $100 million fund marks a historic moment for Wisconsin, with the aim of providing crucial support to budding companies and innovators looking to make their mark.
The Wisconsin Investment Fund, backed by $50 million in federal funds and an additional $50 million from private investors, is poised to be a game-changer for the state’s entrepreneurial ecosystem. Governor Evers made the official announcement at Forward BIOLABS in Madison, a key player in the startup support network.
Missy Hughes, the Secretary of the Wisconsin Economic Development Corporation, expressed the agency’s commitment to nurturing local talent and encouraging the growth of homegrown businesses. “We want to support entrepreneurs who want to start here, who want to grow here and most importantly who want to stay here,” Hughes stated.
One of the innovative features of the fund is the requirement for venture capital firms selected to manage it to match each dollar of public investment with at least one dollar of private funding. This model not only encourages collaboration between the public and private sectors but also ensures the sustainability and growth of the fund over time.
Governor Evers highlighted the long-term benefits of this approach, noting that as the businesses supported by the fund flourish and expand, the value of the fund will also grow, creating a ripple effect that will benefit the entire startup community.
The $100 million fund is a result of a successful partnership with the U.S. Treasury’s State Small Business Credit Initiative, bringing much-needed resources to companies operating in key sectors such as technology, healthcare, agriculture, and manufacturing. This diverse focus reflects the state’s commitment to driving innovation across multiple industries.
Several venture capital firms have already been selected as recipients of the fund, with allocations ranging from $5 million to $15 million. HealthX Ventures, Venture Investors Health Fund, Serra Ventures, NVNG Investment Advisors, and Idea Fund of La Crosse are among the first awardees, demonstrating the fund’s reach and potential impact.
While these initial investments represent a significant step forward, the state is actively seeking additional opportunities to allocate the remaining $5 million to further support and catalyze the growth of the local startup ecosystem.
Overall, the launch of the Wisconsin Investment Fund signals a new era of growth and opportunity for entrepreneurs in the state. With a focus on collaboration, innovation, and long-term sustainability, this initiative is poised to make Wisconsin a hub for startup success and economic development. As the fund continues to evolve and support new ventures, the future looks brighter than ever for Wisconsin’s entrepreneurial community.
