Tony Evers, together with Wisconsin Economic Development Corp. Secretary and CEO Missy Hughes, announced the launch of the $100 million Wisconsin Investment Fund.
The fund is a public-private venture capital initiative that will initially invest in startup businesses throughout the state.
The venture capital firms must match each dollar of public funds with at least one dollar of private money, which will initially double the state’s investment impact. The state’s return on these investments is then reinvested into the Wisconsin Investment Fund to generate more capital and fund more promising Wisconsin companies.
The U.S. Treasury’s State Small Business Credit Initiative is providing the $50 million that will make up the state’s portion of the investment fund. Over the first years of the fund, WEDC anticipates creating at least a $500 million impact as the companies selected by the fund continue to grow.
Wisconsin’s fund will be investing in innovative companies working in technology, health care , agriculture, manufacturing, and other areas. As required by the SSBCI program, Wisconsin’s fund is targeting significant support for diverse businesses and companies located in underserved areas of investment. A particular focus will be biohealth, with at least $27 million of the state’s initial investment allocated to that sector.
The private fund partners and the amounts being invested with them include:
- Madison-based HealthX Ventures, $15 million;
- Madison- and Milwaukee-based Venture Investors Health Fund, $12 million;
- Madison- and Milwaukee-based NVNG Investment Advisors, $6 million;
- Idea Fund of La Crosse, $5 million; and
- Champaign, Illinois-based Serra Ventures, $7 million
WEDC is negotiating with a sixth fund manager for the Wisconsin Investment Fund’s remaining $5 million allocation.
