Wisconsin Economic Development

The Wisconsin Economic Development Corporation (WEDC) serves as the state's lead economic development agency, dedicated to fostering sustainable business growth and job creation across Wisconsin. While not a traditional venture capital firm, WEDC plays a crucial role in the state's entrepreneurial ecosystem by administering various programs designed to support businesses at different stages of development. Their primary investment-like activity for early-stage companies is channeled through programs that often involve co-investment or matching funds with private capital sources.

One of WEDC's key initiatives for startups is the Early Stage Business Investment Program. This program aims to bridge the funding gap for nascent Wisconsin-based businesses by providing matching funds alongside qualified angel and venture capital funds. Through this mechanism, WEDC can contribute up to 50 percent of the total investment in a company, with a stated maximum contribution of $250,000 per company per year. This structure encourages private investment while providing critical capital to promising startups that might otherwise struggle to secure full funding.

Since its inception in 2011, the Early Stage Business Investment Program has made a significant impact, investing over $20 million into more than 100 Wisconsin companies. This demonstrates WEDC's commitment to nurturing the state's innovation economy and supporting the growth of high-potential enterprises. While WEDC does not typically lead investment rounds, its participation as a co-investor provides a stamp of approval and de-risks opportunities for private investors, thereby stimulating further capital flow into the state's startup scene.

In addition to direct investment-matching, WEDC also supports the entrepreneurial landscape through programs like the Qualified New Business Venture (QNBV) Tax Credit Program, which offers tax credits to investors in certified Wisconsin businesses, and grants to seed accelerators. These broader initiatives collectively contribute to a more robust funding environment, indirectly benefiting startups by incentivizing private capital and strengthening support infrastructure. WEDC's approach is strategic, leveraging public funds to catalyze private investment and foster a vibrant ecosystem for new and growing businesses in Wisconsin.