Champions are vital

1
Wisconsins Early-Stage Investment Scene

• Champions are vital
• Gov. Jim Doyle
• Financial Institutions Secretary Lorrie Keating
  Heinemann
• Key legislators, Commerce Department
• Wisconsin Technology Council
• Committed angels
• Telling the story is also essential
• Metrics build credibility and help tell the story
• Result Early-stage investing is expanding
• Six networks in 2004/21 today
• Early-stage investing hit 147M in 07, up 43
  percent from 06

2
Act 255 Tax Credits
Angel Investment
Early Stage Seed Investment Fund
Income Tax Credit Effective Date Maximum
Annual Aggregate Amount of tax credits per
year Total State Allocation
25 (per investment) (12.5 per year - 2
yrs) January 1, 2005 3.0 Million 30
Million
25 (per investment) January 1, 2005 3.5
Million 35 Million
3
Financing Sources
Product Dev
Proof-of Concept
Product Design
Product Development
Mass Manufacturing
Discovery
Pre-seed Funding
Seed Funding
Growth/Mezzanine
Start-up Funding
Idea
Company
Founders
1-5 million funding gap
Venture Funds
Friends and Family
Institutional Equity
Individual Angels
Bonds
Angel Groups
Financing
Early-Stage Funds
Debt
SBIR/STTR
Adapted from Sue Preston and the Angel Capital
Association
4
Angel and VC Markets are Complementary
Mostly later-stage 3,813 deals 29.4B
26 B 57,120 deals Mostly early-stage
Company Stage Early Late
995 Early-Stage
415 Seed/Start-up
2007 Angel Investment source UNH CVR
2007 VC Investment source NVCA/PWC/VE
Adapted from John May, New Vantage Group
www.newvantagegroup.com
5
Wisconsin Angel Networks and Funds

• Wisconsin Investment Partners, LLC Madison
• Silicon Pastures Milwaukee
• Origin Investment Group, LLC La Crosse
• Golden Angels Network Milwaukee
• Chippewa Valley Angel Network Eau Claire
• Marshfield Investment Partners, LLC Marshfield
• St. Croix Valley Angel Network, Inc. River Falls
• Phenomenelle Angels Madison
• Badger AgVest Madison
• Pennies From Heaven Racine / Kenosha
• Central Wisconsin Business Angels Portage / Wood
  Co.
• Women Angels Milwaukee
• Kegonsa Capital Fund Fitchburg
• NEW Capital Fund, LP Northeast Wisconsin
• Badger Alumni Capital Network Madison
• DaneVest Tech Fund I Madison
• Continuum Investment Partners Madison
• Capvest Venture Fund Madison
• Capital Midwest Fund Milwaukee

Adapted from Dave Ward, NorthStar Economics
www.northstareconomics.com