With an initial investment of $30 million, the Wisconsin Alumni Research Foundation and the State of Wisconsin Investment Board today announced the formation of a venture capital fund partnership that will focus on information technology start ups in Wisconsin and the Midwest.
The partnership will be named 4490 in reference to the 44° N latitude and the 90° W longitude at the center of Wisconsin. The fund will look to invest in companies developing technologies in data management and storage, social grid computing, mobile technology security, health care IT, and other areas.
SWIB and WARF have been working to establish the early-stage fund for the past 18 months. Carl Gulbrandsen, managing director of WARF, said the foundation has recognized for some time that there is a significant opportunity in Madison and other regions of the state in IT start-up companies, but noted that experienced venture management and funding have been lagging peer states.
“We appreciate the opportunity to work with SWIB on this effort, and we all agree there are some excellent investment opportunities here,” Gulbrandsen said.
Michael Williamson, executive director of SWIB, said the organization’s previous experience has proven that early-stage investments can play a valuable role in diversifying its portfolio, but left no doubt about the true rationale for the fund partnership. “Make no mistake about it. We are creating this fund to make money for our participants in the Wisconsin Retirement System,” he said.
WARF and SWIB have retained a recruiting firm to conduct a nationwide search for a qualified fund manager with operational experience. The firm specializes in private markets investment professionals.
