Wisconsin Inno Fire Awards 2021: Meet the 5 investors and funders finalists

From venture capital firms investing in diverse startups to a nonprofit loan fund for early-stage companies, the finalists in the investors and funders category of Wisconsin Inno's 2021 Fire Awards are working to help finance entrepreneurs in the state, which often struggle to gain access to capital.

The annual Wisconsin Inno Fire Awards program recognizes companies, groups and organizations that are "heating up" the state's technology ecosystem. The following finalists were nominated by the public and selected by the Wisconsin Inno and Milwaukee Business Journal editorial team in the investors and funders category. A panel of independent judges will choose one winner from each of the five Fire Awards categories.

We asked all of the Fire Awards finalists about their accomplishments, challenges and how Wisconsin's startup and technology ecosystem could be improved. Their answers have been edited for clarity and length.

The Equity League

Green Bay

The Equity League is a venture capital partnership with Microsoft Corp., the Green Bay Packers, the Milwaukee Brewers and the Milwaukee Bucks that formed in late 2020. The investment network invests in impact-driven technology companies with a focus on uplifting the Wisconsin technology startup ecosystem and creating more opportunities for Black and LatinX talent. Led by Israel Squires, the organization is incubating its new venture model as a division of the Green Bay venture capital firm TitletownTech. It has closed on two investments to date.

Biggest accomplishment in the past 12 months: "We’ve spent the last 12 months executing on a market insight and data procurement strategy in order to find Wisconsin’s greatest area of need and develop a product that can best attack that problem. We’ve closed two investments, one seed-stage and one Series A, that will have very positive impacts in Wisconsin. But our greatest accomplishment has been building on the relationships with the wonderful entities that already exist within our startup ecosystem as we — the Packers, Brewers, Bucks and Microsoft — look to play a significant role in building our ever-growing technology and venture capital market.

"Equally as great of an accomplishment was adding (venture capital fellow) Michael Flowers to our team. Michael has transitioned from Badger basketball star to the finance industry to mobile software developer to now being an early-stage technology venture capitalist and venture builder. He’s been an incredible addition to the team and an excellent business partner."

Biggest challenge in the past 12 months: "We have a technology talent gap in Wisconsin. There are some great organizations that are hyper-focused on this problem. As a collaborative unit, we can keep talent here and bring in more talent. Talent drives an ecosystem."

Milestone the organization is working toward in the next 12 months: "We want to bring technology ventures and talent to Wisconsin, with no limits."

How Wisconsin’s technology and startup ecosystem could be improved: "Anything that creates more importing of talent as opposed to exporting, especially diverse talent."

Inspiring thought leader: TitletownTech managing director Craig Dickman

Gateway Capital Partners

Milwaukee

Led by managing partner Dana Guthrie, Gateway Capital Partners is an early-stage venture capital firm that invests in pre-revenue Milwaukee-area startups that positively impact low- and moderate-income communities. Gateway Capital closed on its $13.5 million fund this summer and has since invested $400,000 each in Tip a ScRxipt, a crowdfunding platform for out-of-pocket medication costs, and health data startup Geno.Me. Gateway Capital is one of five Wisconsin venture capital funds backed by the state's $25 million Badger Fund of Funds, which required the portfolio funds to raise private money to match every public dollar invested.

Biggest accomplishment in the past 12 months: "The biggest accomplishment has been raising an oversubscribed $13.5 million fund in approximately eight months and deploying capital to entrepreneurs in less than 12 months."

Biggest challenge in the past 12 months: "The biggest challenge thus far has been the fundraise. The bulk of the fundraising cycle took place during the pandemic, which prevented in-person connections. But the pandemic also made for some advantages as well. Business people who’d typically travel a lot for work and therefore could be difficult to reach were now much more accessible (virtually) due to travel restrictions."

Milestone the organization is working toward in the next 12 months: "We look forward to continuing to identify and support great entrepreneurs with high-growth startups and seeing our portfolio companies accomplish key business milestones."

Inspiring books and podcasts: "For founders considering seeking venture capital, I’d recommend "Venture Deals" by Brad Feld (and Jason Mendelson). I enjoy way too many podcasts – Samir Kaji’s “Venture Unlocked,” Arlan Hamilton’s “My First Million,” 88.9 Radio Milwaukee’s “Diverse Disruptors” and “I Am Athlete” are a few of my favorites."

Madison Development Corp. Venture Debt Fund

Madison

The Madison Development Corp. (MDC) Venture Debt Fund provides loans of $200,000 to $500,000 to early-stage, high-tech businesses in the Greater Dane County area with the goal of providing the critical capital needed to help new companies reach profitability. The loans are non-dilutive capital but provide fund investors with an option to exercise MDC's right to purchase stock in the company at a payoff or exit based on 20% of the original loan amount.

In the last 15 years, the program has made 68 loans totaling more than $20 million to 58 companies across its first six funds. Madison Gas and Electric Co. is the fund's lead investor, and 12 banks and two Madison-area economic development organizations are also investors in the fund, according to MDC's 2020 annual report.

Biggest accomplishment in the past 12 months: "Madison Development Corp.’s Venture Debt Fund invested $1.6 million into four growing startup companies in 2020 and $750,000 into three companies in 2021 so far. These companies include StartingBlock Madison, SimpleMachines, ImageMoverMD, Mobile22, SmartUQ, Silatronix and Kilter. Our portfolio of 21 companies created 329 quality jobs in 2020. Three of our portfolio companies — Phoenix Nuclear, GrocerKey and Pinpoint Software — had successful exits. We were able to acquire stock through our warrants in Asto CT and GrocerKey."

Biggest challenge in the past 12 months: "The inability to network in person in 2020 and through most of 2021 was a huge challenge for us. Networking with entrepreneurs, investors, accelerators, etc., is important to MDC as it is where we source our deals. We were happy to resume in-person events by attending the Wisconsin Technology Council’s Early-Stage Symposium in November."

Milestone the organization is working toward in the next 12 months: "We’d like to raise $10 million for MDC Venture Debt Fund VII, which will be an increase of $3 million from the last raise."

How Wisconsin’s technology and startup ecosystem could be improved: "Our technology and startup ecosystem could be improved by having more lead investors into startups. Wisconsin’s Qualified New Business Venture (QNBV) program is an effective way to stimulate investment in startup and early-stage businesses in Wisconsin. By offering a higher QNBV credit, such as 40% for lead investors compared with 25% for other investors, it would encourage Wisconsin investors to take the lead in investment rounds."

Inspiring book: "Venture Deals" by Brad Feld and Jason Mendelson

Milwaukee Venture Partners

Milwaukee

The Milwaukee Venture Partners (MVP) angel investment group formed early this year. It's led by Karen Plunkett, as well as four other co-founders. The volunteer-based network has 37 individual accredited investor members who have collectively invested more than $1.2 million in five companies this year. As a nonprofit, the group is also focused on mentorship and education in the entrepreneurship and startup space.

Biggest accomplishment in the past 12 months: "Since our launch in early 2021, our members have funded five deals: Immuto Scientific, Akru.co, Blueline Battery, Medicardia, and Bopdrop for a total of $1.21. We are evaluating funding two additional companies with hopes of closing late this year or early next year."

Biggest challenge in the past 12 months: "Navigating the semi-fragmented Wisconsin tech and startup ecosystem. Our approach has been to build strong collaborative relationships with multiple entities in Milwaukee and Wisconsin including the MKE Tech Hub Coalition, gener8tor, Gateway Capital Partners, The Commons and Wisconsin Investment Partners, just to name a few. Also leveraging existing strong relationships with local universities (such as the University of Wisconsin-Milwaukee and Concordia University). We are proud that our members have faculty and administrative positions at both schools. Second, we strive to have diversity and inclusion in our membership. We are proud to be female-led and continue to seek new members with diverse backgrounds."

Milestone the organization is working toward in the next 12 months: "Our 2022 goal is to provide investment capital, strategic advice and mentoring to as many early-stage companies as possible! MVP hopes to be a catalyst to many local and Midwest companies; to jumpstart entrepreneurs’ dreams. Our internal goal is to grow membership ... to be able to fund and mentor these companies (and to) work with other Wisconsin angel investors and groups to share research, ideas, thoughts and to provide education to our members and to those who do not yet know they want to be part of the startup ecosystem."

How Wisconsin’s technology and startup ecosystem could be improved: "An increase in awareness and education. MVP was formed as a nonprofit with one of our mandates to offer education. We have offered multiple community-based education events on topics including fundraising, health care technology, and understanding blockchain, cryptocurrency, and NFTs."

Inspiring thought leaders: Brian Thompson, president of the UWM Research Foundation and director of the Lubar Entrepreneurship Center

NVNG Investment Advisors

Madison/Milwaukee

Led by Carrie Thome and Grady Buchanan, NVNG Investment Advisors closed on more than $40 million in its first venture capital fund of funds last month from investors including Madison's Exact Sciences Corp. NVNG aims to raise a total of $200 million from Wisconsin institutions and companies, and then invest in venture capital funds around the country with the goal of increasing investment in Wisconsin startups and innovation. It said it offers "venture capital as a service" to provide financial returns to its investors while also helping them serve strategic objectives. The firm currently has a physical presence in Madison but said it plans to establish its headquarters in Milwaukee next year.

Biggest accomplishment in the past 12 months: "NVNG has brought together a community of institutional and corporate investors to create a thoughtful, engaged group of stakeholders looking to become more active throughout the venture capital industry. As a connector for the Wisconsin market, NVNG has also made introductions for local startup companies to VC funds outside of Wisconsin – a handful of which have led to new investments into our local ecosystem."

Biggest challenge in the past 12 months: "Virtual outreach has presented the biggest challenge in how we form new relationships and cultivate them over time. It’s been a challenge to navigate the switch to building relationships over the phone and on-screen, rather than meeting in offices face-to-face in such a relationship-driven asset class."

Milestone the organization is working toward in the next 12 months: "NVNG expects to be in the position to fully build out our team, have a physical presence in both Madison and Milwaukee, and continue the work of introducing venture capital funds to local startups and the Wisconsin ecosystem."

How Wisconsin’s technology and startup ecosystem could be improved: "Wisconsin startups and local investors need the same exposure and access to venture capital as those in more advanced ecosystems. As just one catalyst, NVNG seeks to open pathways for more venture capital firms to tap into and become more familiar with our home market. Greater connectivity and engagement with the broader venture community is a must-have."

Inspiring book or podcast: "Startup Communities: Building an Entrepreneurial Ecosystem in Your City" by Brad Feld and the 20minVC podcast by Harry Stebbings.