Technology Entrepreneurs Choose Wisconsin for Best Growth Opportunities

When Governor Jim Doyle took office in 2003, Wisconsin ranked near the bottom in entrepreneurial activity. Today, more and more technology entrepreneurs are choosing to grow their businesses in Wisconsin, and they are attracting the attention of capital markets and potential strategic partners. Wisconsin is no longer a flyover zone. It is a prime destination for companies seeking research partners and venture capitalists seeking high-yield investments. Wisconsin is becoming a fast-growing center for product commercialization.

We hear from venture capitalists that Wisconsin companies plan and execute their commercialization initiatives more cost-effectively than their competitors on the coasts. We've developed momentum.

Here are a few of the technology companies that have relocated to Wisconsin over the past year:

Flex Biomedical, Inc. was founded in October 2007. The company develops innovative products for the treatment of musculoskeletal injuries and diseases. Its lead product is a polymer-based treatment for osteoarthritis.

The company plans to relocate from Boston, MA, to Madison. It received a $150,000 Technology Venture Fund (TVF) loan for further research and development and for the purchase of equipment. Total project cost is $2,750,000.

Inviragen, Inc. was founded in 2003 in Fort Collins, CO, to develop vaccines for emerging infectious diseases. The company will use a $250,000 TVF loan to lease a 4,000-sq.-ft. laboratory and office space in Madison. This laboratory will be used for preclinical testing and research to measure immune responses and to conduct further research of vaccine administration and delivery. Total project investment is $2,800,000.

Exact Sciences Corporation, Marlboro, MA, received a $1-million loan from the Department of Commerce to relocate its headquarters and operations to Madison. Exact Sciences Corporation is a molecular diagnostics company focused on colorectal cancer. The company has extensive intellectual property protecting its non-invasive, molecular-screening technology for the detection of this disease. The company will use its loan for equipment and working capital related to the relocation. The company expects to make a significant investment in its relocated operations.

VitalMedix, Minneapolis, MN, is a developing a drug for treating hemorrhagic shock, which occurs when blood loss exceeds the body's ability to compensate, as from gunshot or auto accident. Hemorrhagic shock causes vascular collapse, cell earth, and organ failure. Commerce certified the company as a qualified new business venture eligible for up to $1 million in angel or early stage investment. The company is moving to Hudson or New Richmond.

NanoMedex, a FL-based firm, has developed a nanotechnology formulation for generic drugs that are poorly soluble in water. This formulation promotes solubility so that drugs that are not currently injectible can be injected when necessary for treatment. Commerce provided a $275,000 grant to help the company relocate to Fitchburg.

Kathy Collins has worked with each of these companies and hundreds of others in her capacity over the past ten years as the technology and financial development manager in the Commerce Division of Business Development. She has served at the primary statewide liaison for early stage technology businesses and worked with key entrepreneurial assistance providers and angel and venture capital investors to facilitate strategic alliances, promote entrepreneurship, and encourage technology transfer. Prior to coming to Commerce, she was a banker for 15 years.

Kathy recently took the position of regional director for the Wisconsin Entrepreneurs' Network (WEN). WEN provides resources, education, support systems to turn their great ideas into viable, job-creating businesses. The network's regional centers are located at UW-Eau Claire, UW-Milwaukee, UW-Madison and Northeast Wisconsin Technical College in Green Bay. It also has 50 regional centers. WEN has served more than 30,000 customers since inception in 2005.

Although Kathy will no longer be working at Commerce, we expect a seamless transition. As WEN regional director, she will meet with and guide entrepreneurs through a strategic growth process. With her knowledge of state and federal financing programs, she can direct start-up companies to assistance providers, including Commerce, as they go through the commercialization process.

Kathy can be reached at kcollins@bus.wisc.edu. I wish her well in her new position, and expect to work closely with her as we grow Wisconsin's technology sector.

-- Richard J. Leinenkugel, Secretary