The Idea Fund of La Crosse said Wednesday that it has closed on its second venture capital fund, raising $31.5 million to be invested in pre- and early-stage revenue startups in the upper Midwest.
The Idea Fund of La Crosse is one of the five Wisconsin venture capital firms backed by the public-private Badger Fund of Funds, a $25 million initiative launched in 2013 to help kick-start the state's venture capital industry. The Badger Fund of Funds backed the Idea Fund with $5.2 million contribution for Idea's first fund, which closed with a total of $13 million.
The total raised for the Idea Fund's second fund exceeds the $25 million target it revealed in fall of 2022, when it said it had raised $20 million. Unlike the first fund, the Idea Fund of La Crosse's second fund did not receive any backing from the Badger Fund.
According to Pitchbook, the new fund – Idea Fund of La Crosse II LP – is one of the three largest venture capital funds ever raised dedicated to investing in the three-state region of Wisconsin, Minnesota and Iowa. The fund invests in diversified end markets such as agriculture, manufacturing, supply chain, and health care, which it said are industries crucial to the region's employment base.
“In a tough market, the new funding allows us to lean in, scaling our offerings and helping our portfolio companies move even faster and farther,” said general partner Jonathon Horne. “Challenging times can create great companies. With venture markets contracting, supporting our region’s most promising entrepreneurs is now more important than ever.”
The Idea Fund of La Crosse has entered a partnership with Pablo Capital, a private investment syndicate representing a co-founder and early employees of Jamf Holding, a developer of mobile device management software founded in Eau Claire but now based in Minneapolis. Pablo's investment director, Elaine Coughlin, has joined the Idea Fund and will work from the fund's new office in Eau Claire.
Jamf was founded in 2002 — in the wake of the dotcom bubble. Its 2020 IPO in which it raised $468 million, according to Reuters, represents the largest ever exit of a tech startup in Iowa, Minnesota or Wisconsin.
The Idea Fund II said it will make initial investments of about $500,000 to $1 million in about 20 startups, with a particular focus on its three target states.
Idea Fund has invested in 15 portfolio companies and currently manages $45 million on behalf of its limited partners.
Idea Fund announced the first four investments for its second fund:
Golgix Inc., Milwaukee — a provider of a software-only solution that uses manufacturers’ existing machine data and artificial intelligence to prevent unplanned downtime and boost productivity;
Distribution Depot, Brookfield — a startup that developed a software tool that allows wholesale trades distributors to implement e-commerce.
Lumberjack Technologies Inc., Minneapolis — a single-source technology platform and service provider network for recurring outdoor services at multi-family and residential properties;
Hopper Health Inc. — a virtual primary care platform designed for neurodivergent adults that plans to expand services to all 50 states.
