Wisconsin Venture Capital Efforts Renewed

With the Democrats now in charge of the state Senate, there’s a new effort to draft a bill to create a state venture capital fund to help start-up companies grow and create jobs in Wisconsin.

Venture capital legislation stalled in the legislature last year under Republican leadership. Now there’s an effort to build bi- partisan supportfor what’s being called a fund of funds.Itwould use about 25 million dollars in state bonding money to attract private investment funds. Thirty other states already have such funds andTom Still of the Wisconsin Technology Council told the committee Wisconsin is falling behind the curve. He says it’s time for the state to do a better job of helpinglocal entrepreneurs start new companies and create jobs .

“When it comes to venture capital under management venture capital invested in Wisconsin we’re well below the average and so there’s a gap there between the kinds of ideas that we’re producing , the kind of talent we have and where the money’s gonna go,” he says.

Last year many legislators resisted a plan that would require the state to borrow money to lend to start up companies. and alsoworried about the government picking winning or losing companies to lend to.Mark Bugher, Director of U-W Madison University Research Park, says if the state want’s to help new companies locate and grow in the state they’re going to have to take some risks.

“Not every investment will succeed,” he says.”I think legislators that are thinking about their position on this kind of legislation should understand there may be a press story that comes out of those kinds of things.and that’s one of things that comes up in the legislative debate that has to be reconciled.”

Bugher says it’s also important to pass a bill that will bind future legislaturesto keeping the fund going so new start-ups aren’t left high and dry just as they’re beginning to make a profit.