According to research by the Wisconsin Technology Council for its annual Wisconsin Portfolio report, 2023 investment in Wisconsin-based companies by angel and venture capitalists and other equity investors dropped significantly from the previous year, In Business sister publication Insight reports. Investment totaled $490.2 million for the year, down from 2022’s $640.2 million.
The Tech Council reported 107 separate deals involving over 100 funds, networks, and accelerators, and 73 out-of-state investors took part in 27 of the 107 rounds. Nearly 75% of the dollar total was made up by the top 10 deals by dollar size: VBA Software, SHINE Technologies, Bend Health, and Type One Energy together accounted for almost $285 million. The median deal was $750,000.
Wisconsin early-stage companies have raised almost $3.5 billion since 2015 and over $2 billion in the last three years. The Tech Council said a funding “dead spot” existed between $5 million and $9 million as only four companies raised totals within that range. Ten companies raised $10 million or more; 36 companies secured between $1 million and $4 million; and 57 companies raised under $1 million.
Other key findings include:
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Fifty-four of the 107 deals tracked were in the Madison area;
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Roughly two-thirds of both the total number of investments and all dollars invested went to health care and information technology deals;
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Energy, advanced manufacturing, and agricultural deals were on the rise; and
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Just 18% of funding rounds were spearheaded by women founders and CEOs.
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The full report is available here.
