Investment Firms Take Increased Prominence in Wisconsin's Economy

Wednesday, March 1st, 2023 -- 12:01 PM

(By Joe Schulz, Wisconsin Public Radio) When many think of Wisconsin's economy, they envision dairy farms and manufacturing facilities.

But, according to Joe Schulz with Wisconsin Public Radio, investment firms have taken increased prominence in the state’s economy in recent years, beyond just Madison and Milwaukee. Since 2017, Wisconsin has seen a steady increase of investment in startup companies.

That includes the record $868 million the state’s entrepreneurs raised in 2021, according to the Wisconsin Technology Council’s 2022 Wisconsin Portfolio, which measures investment in early-stage companies from the prior year.

In working on the 2023 portfolio, Wisconsin Tech Council President Tom Still said it looks like overall investment in startups in 2022 was less than it was in 2021. But he expects last year’s investment to remain higher than 2020’s total of $483 million.

"I'm pretty convinced, with our early results, that we're going to see somewhere north of $500 million in investments," he said. "We don't know how far north right now." The two most common types of investors in new companies are angel investors and venture capital firms.

Angel investors provide funding to startups usually in exchange for debt or ownership equity, while venture capital firms fund emerging companies deemed to have growth potential.

Craig Dickman, managing director for Green Bay-based TitletownTech, said venture capitalists are crucial for businesses in the earliest stages of development and often serves as the first money a business receives to get off the ground.

"It's probably the most important time for a founder to get money because if they can't get started, they can't build," he said. Still views 2021’s record investment as a bit of an outlier, primarily due to several companies making initial public offerings.

He said 2022’s total investment will be closer to the more gradual increases the state saw in 2019 and 2020.

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