Four business giants are coming together to launch a new $100 million venture fund.
Advocate Aurora Health, Foxconn Technology Group, Johnson Controls and Northwestern Mutual have teamed up to launch the Wisconn Valley Venture Fund, a $100 million fund that will invest in technology companies in the U.S. and abroad. Each company is contributing $25 million to the fund, which will be based in Milwaukee.
The goal of the fund, like all VC funds, is to generate healthy returns on its investments. But the four companies also hope the fund succeeds in "positioning southeastern Wisconsin as a global technology hub," according to a news release.
“Since Foxconn announced our investment to help create Wisconn Valley one year ago, we have been working actively to contribute to a vibrant business and industry environment in the state. We are pleased to partner with like-minded organizations who share Foxconn’s vision to revolutionize technical innovation through the fund,” Terry Gou, founder and CEO of Foxconn Technology Group, said in a statement.
The fund plans to invest in startups working in a range of industries, and each organization will play a role in selecting which businesses to invest in.
"We’re proud to take part in this unprecedented collaboration,” John Schlifske, chairman and CEO of Northwestern Mutual, said in a statement. “Each of our partners brings unique expertise that we can leverage to bring new perspectives to Wisconsin. Learnings from the fund will help us enhance our ongoing efforts to transform the experience of financial security for our clients while also generating an attractive investment return for our company.”
This is the latest example of Wisconsin's pillar businesses launching initiatives to bolster the state and region's tech ecosystem. Last year Northwestern Mutual launched Cream City Venture Capital, a $5 million fund to invest in Milwaukee startups, while Aurora Health Care also launched a $5 million fund for InvestMKE. American Family Insurance is also active in the state's venture ecosystem, recently partnering with gener8tor on a new social impact accelerator.
The launch of the venture fund comes on the heels of Foxconn's announcement Monday that it's giving the University of Wisconsin–Madison $100 million to boost engineering and innovation research at the school.
