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Governor Doyle Announces 43 Percent Increase in Angel, Early Stage Investing in High Tech Start Ups
For Immediate Release: June 18, 2008 SAN DIEGO - Governor Jim Doyle today announced that private dollars invested in Wisconsin start-up companies operating in high-growth sectors such as biotechnology increased by 43 percent to nearly $150 million. According to a survey conducted by NorthStar Economics and the Wisconsin Angel Network there was $146.9 million in early-stage investments in 2007, up from $102.9 million in 2006 - an increase of 43 percent in dollars invested by individual angel investors, angel networks, early-stage funds and others interested in Wisconsin start-up deals. "This is great news for Wisconsin. In order to grow Wisconsin, it's important we attract investment and support new high tech start-up companies," Governor Doyle said. "These businesses will create the bedrock for a knowledge-driven economy and produce the high-paying jobs of tomorrow. By accelerating the growth of new businesses we can build on our success and lure new investment to our state." "Wisconsin's early-stage capital market is growing at a rate that exceeds the U.S. average, which speaks to the tremendous strides being made by Wisconsin start-ups and those who help those companies grow," said Mark Bugher, chairman of the Tech Council and director of University Research Park in Madison. Venture capital investments in Wisconsin - later-stage investments made after early-stage companies begin to grow - also increased in 2007 to $90 million from $73 million in 2006, the survey showed. In addition to the early-stage and venture capital investments, Wisconsin also showed year-over-year gains in Initial Public Offerings (four offerings raised $343 million) and federal Small Business Innovation Research grants ($33.7 million). Governor Doyle announced the survey results during the 2008 BIO International Convention in San Diego, Calif., which is being attended by a Wisconsin delegation that includes representatives of numerous early-stage companies. Governor Doyle has made it a priority to spur creation of "risk capital" in Wisconsin, including creating investor tax credits and launching the Wisconsin Angel Network to help facilitate deal flow, investor exchanges and network creation. Earlier this year Governor Doyle proposed Accelerate Wisconsin, which would provide increased flexibility for investors and the businesses that receive those investments, increased funding assistance for start ups, and new tax exemptions for investors in Wisconsin businesses - driving economic growth and new jobs for Wisconsin citizens. Surveyed for the report were Wisconsin angel groups and funds, as well as eight major law firms that handle deals for individual angels and others. Other sources of data included state tax credit data, national venture capital reports and Tech Council data on SBIR grants. Visit http://www.wisconsintechnologycouncil.com/uploads/2008WRCR.pdf to download a copy of the 16-page report, which includes additional figures on investments as well as a guide on how the risk capital markets work in Wisconsin and beyond. -30- |
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