Start-up investment in Wisconsin in 2022 reached $640 million for but declined from the record investment of $868 million in 2021.
The investment was reported by Wisconsin Technology Council, which said it captures much, but likely not all of the startup investment deals in the state. There were 107 deals in 2022, lead by the Madison-based Fetch Rewards $240 million investment. That was the lowest number of deals since 2015 and compares to the 140 deals reported in 2021.
The report states, “While there has been enormous success achieved by Wisconsin citizens, its community leaders and public policy makers to grow the entrepreneurial scene, more still needs to be done. Wisconsin continues to remain behind its neighboring states and for the state to gain parity with its neighbors, there is still much to do.”
The Top 10 deals in 2022 accounted for more than 70 percent of the total dollars invested. The median deal size was $1 million, meaning 50 percent of the investments in 2022 were less than $1 million. The report concludes that “Wisconsin’s earliest startups are raising the funding rounds they need to seed their plans and grow to the next level.”
Out-of-state investors continue to play a significant and growing role, with 76 unique investment groups participating in 32 rounds of funding in 2022.
Tom Still, president of the Wisconsin Technology Council cautions in the report that public and private leaders need to do more to foster investment in startup companies to compete in the Midwest region and nationally.
“Young companies born in Wisconsin and financed here through the startup phase may be forced to look elsewhere for serious, multi-million-dollar investment rounds. If they find those rounds elsewhere, their investors may well compel them to move,” Still wrote.
Read the full report here.
