— While investment activity in Wisconsin so far this year is faltering, one expert says there’s still time for “a nice uptick” in the coming months.
The Tech Council has identified about $191 million in investment deals in 2023 — well below the year-end totals of $870 million in 2021 and $640 million in 2022. And the group has only identified 40 investments for 2023, compared to 140 in 2021 and 107 last year.
But Joe Kremer, director of the Wisconsin Technology Council’s Investor Networks, noted investment activity tends to escalate in the fourth quarter.
“I remember this time last year feeling kind of trepidatious as to what the numbers might be,” Kremer said in an interview Friday. “We had Fetch in the bag at that point — that was a really big, large deal — but the numbers weren’t huge. And they really picked up, which surprised me, between October and December.”
Fetch Rewards, a Madison-based company with a rewards program and marketing platform, raised $240 million in 2022, accounting for a third of all investment capital raised in Wisconsin that year.
This year has lacked a major deal like that, Kremer said, though he pointed to a number of “decent-sized mid-range deals that show potential for popping,” adding “it looks kind of promising.”
As examples, he pointed to Madison-based fusion technology company Type One Energy raising $29 million, Milwaukee-based sports product manufacturer Hoop raising $11 million and green hydrogen company Advanced Ionics in Milwaukee raising $12.5 million.
“If things go well for them, they’re probably going to be successful at raising a very large amount,” Kremer said. “Because they already have BP Ventures in, Mitsubishi is in, and those folks can do large dollars. Something like Advanced Ionics is going to need a pretty significant investment, same with Type One Energy.”
Regardless of whether those success stories from this year turn into bigger numbers in the near future, Kremer noted the totals from the past two years were exceptionally high.
“If things are slowing down, to what level? Are they going to go back to the 2020 level, which isn’t horrible?” he said. “As we’re comparing things, we have to remember the historical picture, at least especially for Wisconsin.”
The drop in Wisconsin is in line with a national trend that saw $347.5 billion in venture capital investing in 2021, a dip to $246.5 billion in 2022 and now $85.6 billion so far in 2023. Kremer points to economic and political instability and higher interest rates as factors driving this shift.
See the Tech Council’s latest Wisconsin Portfolio covering 2022: https://wisconsintechnologycouncil.com/wp-content/uploads/2023/07/WI-Portfolio-2023-FINAL-web1.pdf
See a recent related story: https://www.wisbusiness.com/2023/early-figures-suggest-state-seeing-lower-levels-of-investment-in-2023/
— UW-Whitewater has announced a new partnership aimed at improving cybersecurity training efforts in the state.
An administrator with the Wisconsin Department of Military Affairs Division of Wisconsin Emergency Management and UW-Whitewater Chief Research Administration Officer Carl Fox recently signed an agreement to boost the state’s Cyber Response Team Training Program, according to a release.
The volunteer emergency response group includes cybersecurity experts and IT professionals who will work to support critical state infrastructure during a cyberattack. The new agreement is meant to “close the gaps” between general members of the team and cyber incident responders, the release shows.
Maj. Gen. Paul Knapp, the state’s adjutant general and chief cybersecurity advisor to Gov. Tony Evers, says this team “plays an integral role in assisting local communities to respond and recover from attacks on information systems and communications networks.”
Under the memorandum of understanding, the university will provide facility space, equipment and staffing support for a quarterly training program for the team, which in turn will help UW-Whitewater identify and promote public sector job placements to support its own cybersecurity program.
And the WEM Cybersecurity Preparedness Coordinator will help support that university program’s own research efforts, including data collection and analysis.
Balaji Sankaranarayanan, director of the university’s Cybersecurity Center for Business, underlines the threat cybercrime poses to businesses.
“As the world becomes increasingly interconnected, organizations must create more impermeable systems and be ready to defend their business from cyberattacks,” Sankaranarayanan said in a statement. “Through this collaboration with WEM, we aim not only to educate today’s professionals in cybersecurity, but to arm tomorrow’s IT leaders to thrive in the face of adversity.”
See the release: https://www.wisbusiness.com/2023/uw-whitewater-new-partnership-increases-cyber-resiliency-in-wisconsin/
Listen to a recent podcast focused on cybersecurity: https://www.wisbusiness.com/2023/wisbusiness-the-podcast-with-paul-doucas-syslogic/
See more on the Cyber Response Team: https://wem.wi.gov/response-teams/#crt
— Eight startups have been selected for the Madworks Fall Accelerator, the organization announced recently.
Figgy, 1Director, Novii CPA, Petphoria, Redfox AI, Soul Mobility, Snow Scholars and Spraycision will participate in the 11-week program that begins Oct. 4 at StartingBlock Madison, a co-working space and entrepreneurial hub. Madworks is a startup accelerator program based in StartingBlock.
“This group of new companies is one of the most diverse cohorts that we have welcomed to the Madworks program,” Madworks Program Manager Susie Younkle said in a statement. “We are thrilled to have them join the Madworks family.”
The accelerator helps participants learn how to get their strategic finances in order, run an effective board meeting, tackle legal issues, build financial expertise and more.
The cohort participants also receive $6,500 in grant funding, a one-year membership to StartingBlock and connections with Madworks and StartingBlock staff, as well as their network of mentors and experts.
See more at Madison Startups: https://www.madisonstartups.com/madworks-names-fall-2023-cohort/
<br><b><i>Top headlines from the Health Care Report…</b></i>
— Wisconsin’s COVID-19 death toll stands at 16,811 as virus activity appears to be on the rise in the state.
<i>For more of the most relevant news on COVID-19, reports on groundbreaking health research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics.com and WisBusiness.com.</i>
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#TOP STORIES#
# Wisconsin dairy farms adopt cow Fitbits and robots, but not everyone can afford them
# Candy plans: Haribo of North America’s already looking at expanding first U.S plant in Kenosha County, adding hundreds more workers
# Madison child care center adds space for 100 more kids
#TOPICS#
# AGRIBUSINESS
– Wisconsin FFA chapters awarded ag literacy grants
http://wisconsinagconnection.com/story-state.php?Id=882&yr=2023
# CONSTRUCTION
– Milwaukee Mayor’s $1.9B budget proposal has infrastructure boost
# ECONOMY
– Despite new facility, Madison child care provider feels strain of nationwide crisis
# EDUCATION
– MATC opens new STEM Educational Center at downtown campus
# ENTERTAINMENT & THE ARTS
– Colombian artist shares his iconic work with Verona in two new murals
– Giant Bayview Townhomes mural took a village effort
# ENVIRONMENT
– Despite concerns, Natural Resources Board approves changes that seek to protect waterways
# FOOD & BEVERAGE
– Longtime Vintage bartender Simon Dettinger to open Northside Lounge
– Kenosha meat cutter moves ahead in national competition
# LEGAL
– Wisconsin corn mill owners plead to federal charges in fatal explosion, will pay $11.25 million
# MANUFACTURING
– Plexus Corp., Foxconn, Milwaukee Tool, Jolly Good Soda make top 16 in Coolest Thing contest
# NONPROFIT
– Johnson Controls Foundation commits $1.2 million to four Milwaukee nonprofits
# POLITICS
– Organic market development act introduced in congress
http://wisconsinagconnection.com/story-state.php?Id=883&yr=2023
# REAL ESTATE
– Amazon considered facility at Spring Mall site in Greenfield
# SPORTS
– Milwaukee Bucks likely won’t win bid for 2025 All-Star Game
# TRANSPORTATION
– Milwaukee airport reports strong summer growth
# PRESS RELEASES
<i>See these and other press releases:
http://wisbusiness.com/index.iml?Content=82 </i>
UW–Whitewater: New partnership increases cyber resiliency in Wisconsin
Wisconsin Association of School Boards: Honoring our school board members’ commitment to children
