As venture capital momentum slowed in late 2022, fewer dollars flowed to Wisconsin startups last quarter compared with earlier in the year and in the same quarter of previous years.
But 2022 as a whole was still a historically strong year for venture capital deals backing companies in Wisconsin. Seeking economic development and high-paying jobs, the state's startup ecosystem continues pushing to establish itself as a regional tech hub — a goal that can be measured in part based on the amount of venture capital raised by companies in the state.
Wisconsin startups raised $32.7 million across 19 deals in the fourth quarter and $526 million across 92 deals for the full-year 2022, according to a Jan. 12 report from PitchBook and the National Venture Capital Association — down compared with $90.8 million across 25 deals in the fourth quarter of 2021 and $592 million across 105 deals for the full-year 2021.
Of the Wisconsin companies that raised the most venture capital in the fourth quarter, six are in the Madison area, three are in the Milwaukee area and one is in Eau Claire. The list below shows the companies and the amounts they raised, according to the PitchBook/NVCA report.
Polco — a Madison-area software company that makes an online survey platform for local governments — raised the most venture capital among Wisconsin startups last quarter, bringing in $14 million at a $48 million post-money valuation, according to the report.
Milwaukee-based health technology startup GenoPalate Inc. raised the second-highest venture round, totaling $6.05 million at a $21 million post-money valuation, the report states. The company announced in October it raised $5.6 million.
At the national level, the industry saw a slowdown in venture capital activity due to rising interest rates and "frozen avenues for startup liquidity," PitchBook founder and CEO John Gabbert said in a statement.
U.S. startups raised $238 billion across 15,852 deals in 2022, down 31% compared with nearly $345 billion across 18,521 deals in 2021.
Venture capital dollars raised by Wisconsin startups in Q4 2022:
1. Polco: $14 million
Middleton
2. GenoPalate: $6.05 million
Milwaukee
3. Geno.Me: $2.2 million
Milwaukee
4. WiscMed: $2.02 million
Middleton
5. Isomark: $1.75 million
Fitchburg
6. Last Lock: $1.46 million
Madison
7. Wellbe: $1.21 million
Madison
8. Lillipad: $1.20 million
Waukesha
9. SmartScan Medical Imaging: $900,000
Eau Claire
10. Fenster: $500,000
Middleton
