Even though the bulk of venture capital firms and the dollars they invest remain on the coasts, Great Lakes region VC firms are becoming increasingly more active, and two Wisconsin investors are among the top 10.
The Wisconsin Economic Development Corporation and Wisconsin Investment Partners were among some of the most active startup investors in the Great Lakes region over the last decade, according to startup data firm Pitchbook. Pitchbook defines the Great Lakes region as Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin.
The Wisconsin Economic Development Corporation was listed as No. 4, investing in 134 Midwest companies since 2008. Wisconsin Investment Partners came in at No. 7, investing in 99 Midwest companies since 2008.
The most active VC firm at 196 deals, according to the data, is Elevate Ventures, an Indianapolis-based firm that primarily invests in Indiana-based companies. Other active firms include Columbus-based Rev1 Ventures, with 164 deals, and Chicago-based Hyde Park Angels, with 113 deals.
The WEDC, Wisconsin’s economic development agency created by former Wisconsin governor Scott Walker in 2011, has invested in notable Wisconsin companies like Propeller Health, Fasetto and EatStreet.
Wisconsin Investment Partners, founded in 2000 in Madison, has invested in TAI Diagnostics, Fetch Rewards and ImageMoverMD. Michael Thorson, the co-manager of Wisconsin Investment Partners, told Wisconsin Inno that the firm mainly focuses on investing in biomedical, healthcare and IT startups in Wisconsin. He said the firm invested nearly $4.5 million in 2018, a jump from previous years, when it has usually invested about $3.5 million.
According to Pitchbook, venture capital investment in the Great Lakes region totaled nearly $4 billion in 2018. In 2013, Great Lakes region startups raised just about $1.7 billion across 481 deals.
In Wisconsin alone, startups raised more than $280 million last year, which was the most ever in a single year in Wisconsin, according to the Wisconsin Technology Council. However, even as startup funding in the state has reached record highs, the amount of funding invested into women-led businesses in Wisconsin shrank in 2018.
