The Wisconsin Startup Coalition, the advocacy group that launched in November of 2020 to improve and support early-stage companies in Wisconsin, has formed a list of government policy recommendations it says will accelerate the growth and success of startup companies across the state.
WSC identified the following policy recommendations:
Enhance WEDC’s Qualified New Business Venture (QNBV) Program
- Promote faster growth and the creation of more Wisconsin jobs by eliminating red tape and reducing barriers for early-stage companies to participate in the program
- Better incentivize early-stage investment by adjusting the 25% tax credit, either with an overall increase or a targeted increase for certain industries
- Allocate QNBV funds to create a pilot program that awards qualified startups a cash grant for operational or R&D expenses following successful funding through the QNBV program equal to 20% of the funded amount up to $200,000
Advance additional state support of investment mechanisms
- Explore creation of an additional state-backed venture capital “fund of funds” as an effective tool for promoting investment in early-stage startup companies in Wisconsin
- Explore how other Midwest states are fostering strong venture capital ecosystems that drive economic growth
Accelerate investment in building the Wisconsin tech workforce
- Review current up-skilling and re-skilling programs within the Department of Workforce Development and recommend specific programming to address shortages in the high-skilled technology workforce
Invest in computer science (CS) education in K-12 schools with the Code.org platform
- Create a statewide CS education plan at DPI to coordinate efforts and resources to ensure all Wisconsin school districts are able to provide quality computer science instruction
WSC is co-led by Matt Cordio, co-founder of Startup Milwaukee Week and founder of Skills Pipeline, and Peter Welch, the chief operating officer at lobbying firm The Welch Group in Madison.
One of the goals of the coalition is to double the amount of funding rounds for early stage companies to roughly 100 by 2026, specifically the first capital raise offerings by Wisconsin startups.
Wisconsin companies raised $273.1 million across 77 deals in 2020, according to Seattle firm PitchBook, which collects data on venture and private equity deals. In 2019, Wisconsin companies raised $214.5 million across 73 deals, and $443 million in 2018 across 84 deals.
To compare, Illinois companies raised $2.8 billion in 2020; Minnesota companies raised $1.8 billion; Ohio companies raised $1.5 billion; Michigan companies raised $558 million; and Indiana companies raised $318 million.
“Unfortunately, Wisconsin routinely falls to the bottom of the list when it comes to startup activity,” said Taralinda Willis, WSC board member and co-founder and CEO of Curate, a Madison-based startup. “The coalition’s platform will help startups like mine create more Wisconsin jobs and advance the state’s innovation ecosystem.”
In addition to more early stage investments, the coalition also aims to improve the rate of tech professionals transferring to Wisconsin, support academic entrepreneurs, retain tech talent, create more education around entrepreneurship, starting as low as elementary school, and launching re-skilling programs to grow the tech labor force.
“Startups are the leading creator of net new jobs and economic growth,” Cordio said. "Investing in Wisconsin’s innovation ecosystem will accelerate the state's recovery from the economic downturn caused by the Covid-19 pandemic.”
