This article is part of a new series profiling University of Wisconsin alumni contributing to Wisconsin’s growing innovation economy. Disclosure: The author is a Community Engagement Fellow with Bascom Ventures.
Greg Baker (UW ’86) was born and raised in Madison and will always be a Badger. He has a strong affinity for fellow Badgers and has benefited from extensive networking opportunities based on this shared connection.
It’s no surprise that Baker is now the Managing Partner of Bascom Ventures, an industry- and stage-agnostic venture capital firm. His position allows him to help build a community of UW-alumni investors whose capital is then invested in companies led by other Wisconsin alumni.
According to a recent white paper from the Wisconsin Technology Council, their unique approach is just what the state needs. Venture capital activity in the state is still lacking, despite knowledge that a mere $20,000 of VC invested in Wisconsin creates one new job in the U.S. (versus California's rate of needing $75,000/job). One barrier is the difficulty that accredited investors face when trying to access this asset class, which in turn reduces the amount of capital that can support venture-backed companies. Bascom Ventures hopes to overcome this obstacle by improving access and simplifying the venture investment process for investors.
Since Bascom Ventures will raise annual funds in perpetuity, interested alumni investors will have ongoing opportunities to participate. Each fund can accommodate 99 accredited investors and will invest in 20-25 companies, spreading investments across a range of sectors, stages, and geographies to reduce investor risk.
The firm’s mission extends beyond simply raising capital. Baker says that the larger vision of Bascom Ventures is to “create a network of UW alumni interested in the entrepreneurial ecosystem.” And they’re meeting that goal, with over 15,000 Wisconsin alumni already engaged with their online community.
Though efforts to raise the first fund began a little over a year ago, Bascom has already invested in a diverse group of companies in various sectors, from gene technology (American Gene Technologies) to farm-to-table services (Grub Market) to dog houses for urban environments (Dog Parker). Some of those companies are working on IPOs later this year, and a few have even received acquisition offers.
For the entrepreneurs out there, Baker cautions that seeking out venture capital is not always the best approach and urges entrepreneurs to be thoughtful as they explore the wide range of funding opportunities. The sweet-spot of venture capital, he says, are companies that are experiencing sharp revenue increases and rapid scalability. If your company is defined by slower, more organic growth, it may be more beneficial to seek other funding sources.
An experienced investor and business executive, Baker agrees with Lisa Johnson about the limitations of the Kaufmann Entrepreneurial Index. He sees a lot of exciting companies appearing across the state and is particularly impressed by the number of student-created businesses coming out of universities. Baker also notes the presence of world-class resources like gener8tor and an expanding effort to deploy additional capital throughout the state.
Wisconsin’s innovation economy “will continue to grow with increased successes,” says Baker.
If you’re a UW alum interested in learning more about Bascom Ventures, head over to BascomVentures.com. And in case you missed it: here’s the first article in this series, a Q&A about Wisconsin’s biohealth industry with Lisa Johnson, CEO of BioForward. Stay tuned for the next profile in the series!
About the Author: Andy is a 5th-year MD/PhD Candidate at the Medical College of Wisconsin with interests in medicine, biomedical research, the humanities, and innovation. He is also a member of the Golden Angels Advisors, MCW’s Postdoc Industry Consulting Organization, and a Community Engagement Fellow at Bascom Ventures]
Featured Image via Bascom Ventures main site.
