Wisconsin
not only has one hyperactive angel group but appears to have the most angel groups in the US, and the
number keeps growing, due in part to public support for angel programs.
Wisconsin
Investment Partners, a Madison-based group, was named by
the Halo Report
as the most active angel investing group in the Great Lakes region in 2012. We
wrote about them back in May.
The Yahara Angel Network is the
latest group formed in the state, which sees itself as a
national leader. The state has grown from only a handful of angel groups in the
early 2000s to more than two dozen today. Groups have recently formed in
Oshkosh, Vilas County and near Sheboygan.
Why so many?
“I think there are several reasons for the
state’s strong angel investment infrastructure,” says Dan Blake, Director of
the Wisconsin Angel Network. “Part of it
is related to our Act 255 tax credit program, which was instituted in 2005 and
provides a 25% tax credit for investments made in certified companies. Many
groups were launched after that program was instituted and nearly $60 million
in tax credits have been issued under the program.
“In addition, I think Wisconsin has a strong
spirit of contribution and giving back. Many Wisconsin angels invest for the
opportunity to mentor and work with entrepreneurs. Many were entrepreneurs
themselves or just enjoy working with those who have that passion.
“Lastly, I think there are state
organizations, like the Wisconsin Angel Network, that help provide resources to
help groups form and also other tools for them to continue operating and seeing
appealing deals.”
Wisconsin Angel Network
The Wisconsin Angel Network (WAN) is
part of the Wisconsin Technology Council’s overall economic development and job
creation efforts. As a strategic partner, WAN receives partial funding from the
Wisconsin Economic Development Corporation (WEDC).
WAN fuels the growth of capital in Wisconsin by operating as an umbrella
organization providing services and resources to the early stage investing and
entrepreneurial communities. WAN does not operate a fund or direct
investments. The staff is comprised of a full-time director and many
volunteers who help develop and launch its initiatives.
The Yahara Angel Network
The Yahara Angel Network, formed in
June, is made up of business people from the DeForest-Windsor area of Dane
County, says Jane Cahill Wolfgram, a member and co-manager.
“We’re trying to help grow the
region’s economic base through the rapid growth of technology companies,” said
Cahill Wolfgram, who has a background in public affairs and communications. “We
have a group of experienced members who want to help fill the funding gap
entrepreneurs face in growing their businesses.”
The group,
which is continuing to attract new members from the area, is hoping to raise
about $1 million, Cahill Wolfgram said.
The
group will operate by individuals choosing deals in which they
would like to invest. Initial investments will focus on
startups in biotechnology, agricultural technology, health care, long-term care
and life-planning technologies.
“Groups such as the Yahara Angel Network help
lay the groundwork for entrepreneurs in Wisconsin,” says Tom Still, president
of the Wisconsin Technology Council, which worked with the group during its
formation stage through its Wisconsin Angel Network (WAN). “We need to continue
providing early capital to get their ideas off the ground.”
