• WisBusiness

Monday, September 26, 2011

Creating a state venture capital program should be a legislative goal


By Tom Still
Connecticut launched the nation’s first state-leveraged venture capital program 35 years ago. Today, more than 30 states have similar funds, including many of Wisconsin’s neighbors and peers.

The story of Connecticut’s success in building its supply of venture capital is among the reasons why Wisconsin should also embrace a bipartisan approach to developing sources of capital for its high-growth, early stage companies.

Connecticut has nearly 3.6 million people versus Wisconsin’s 5.7 million, but it routinely outperforms Wisconsin when it comes to landing its proportional share of venture capital. Since roughly the time Connecticut created the “Connecticut Product Development Corp.” to leverage private investments, about $6.6 billion has been invested in 502 in-state companies. Over that same period, $1.2 billion in venture capital has been invested in 166 Wisconsin companies.

Sure, Connecticut is wedged between New York and Massachusetts, two venture capital leaders, but Wisconsin is located between Illinois and Minnesota, which also perform well in venture financing. So, what’s the real difference? About 45 percent of Connecticut’s venture capital investments have come from home-grown VC firms, compared to 5 percent of Wisconsin’s investments.

Expanding the amount of venture capital under management in Wisconsin is one of the recommendations of “Building Capital & Jobs: The case for a venture capital program in Wisconsin.” The report was released Sept. 14 by the Wisconsin Growth Capital Coalition.

Wisconsin has 1.84 percent of the nation’s population but roughly one-half of 1 percent of U.S. venture capital investments, based on five-year averages. Worse yet, it has about one-tenth of 1 percent of all venture capital under management. That’s mostly because there are so few venture firms in Wisconsin, which otherwise has all the ingredients for success.

The state’s assets include a strong tradition of entrepreneurship, above-average research and development investment, high production of patents and other intellectual property, and a skilled work force created, in large part, by the state’s education system. Wisconsin also has one of the strongest angel capital foundations in the country. But it lacks venture capital, which is often needed to bring young companies to the next stage.

Why is this capital important? Venture-backed companies in the United States represent 21 percent of GDP – at an investment rate of about .2 percent. That’s a huge return. Those companies also represent 11 percent of the nation’s private employment. That’s 11.87 million jobs.

If Wisconsin had received its proportional share of venture capital over time, that would mean 259,215 jobs today versus the 60,156 venture-rooted jobs created over time.

The Wisconsin Growth Capital Coalition, a broad coalition of companies, organizations and angel networks and venture funds, examined Wisconsin’s standing versus peer states, neighboring states, U.S. population and other factors, and concluded Wisconsin could absorb nearly four times the investment dollars it receives today. Its report recommends the state:

* Create a state-leveraged “master” fund, called a fund-of-funds, which would invest in 14 to 20 venture capital funds over time. These recipient funds will raise an additional $350 million to $1.05 billion and commit to offices, staff and investments in Wisconsin.
* Catalyze the development of indigenous Wisconsin funds by committing a minimum of one-third ($117 million at the target of $350 million) to certified Wisconsin funds. These “home-grown” funds have existing structures, network connections and deal-flow pipelines, a portion of the money can be put to work quickly.
* Incent additional Wisconsin angel investment through the creation of accelerator funds. These smaller, targeted funds would co-investment with the angel networks and funds that are closest to the entrepreneurial action in Wisconsin. This would also enhance deal flow for venture funds later in the capital continuum.
* Invest across the full capital continuum, from seed stage to growth stages.
* Construct the program in a way that mitigates taxpayer risk and pays back the taxpayer’s investment.
* Competitively select professional fund management to bring experience, national perspective and existing co-investment relationships to Wisconsin’s table.
* Target industry clusters with high-growth, high-wage job creation potential.

The Wisconsin Legislature has returned for a brief floor period this fall. Job creation and economic growth are likely to dominate the agenda. Lawmakers on both sides of the aisle and Gov. Scott Walker appear committed to getting something done.

One of the best ways lawmakers can help on both of these related fronts is to create a state-leveraged capital program for Wisconsin.

-- Still is president of the Wisconsin Technology Council. He is the former associate editor of the Wisconsin State Journal in Madison.

Labels:


Comments: 5

At April 4, 2013 at 9:31 AM, Blogger Majid Ali said...

An employer does have to take into account a sincere change of beliefs that happened over time and realize that an employee is not necessarily insincere if some of his controlling one's environment: what role does this play in learning practices do not follow all of the tenets of a religion.

 
At July 23, 2013 at 11:33 AM, Blogger Sultan khan said...

it's simple for individuals to discover the site they need. breast enhancement

 
At August 5, 2013 at 8:47 AM, Blogger Muhammad Yasir Khalid said...

I have discovered this content very interesting. Do you have any others on this topic I am also delivering it to my buddy have fun with your way of composing. Gamefly Coupon Code

 
At August 9, 2013 at 3:57 PM, Blogger Muhammad Yasir Khalid said...

I think it is outstanding through other individuals' feedback.Although I do not comprehend most of your weblog. unlock lg optimus

 
At August 11, 2017 at 1:14 PM, Blogger قمم التميز said...

شركة مكافحة حشرات
تهتم شركة قمم التميز باعمال الرش والقضاء على الحشرات المنزلية فمهما كانت المعاناة ومهما كانت كمية الحشرات التى تعانى منها فتعاون مع افضل شركة تهتم بهذه الخدمة الان شركة مكافحة حشرات بخميس مشيط
الحشرات المنزلية من المشكلات التى تعانى منها البيوت ، وخصوص فى المناطق المرتفعة فيها الحرارة ، وحيث تنشر الحشرات فى المنزل وقد تسبب متاعب كثيرة وأمراض خطيرة .
وللحماية منزلك من الحشرات ومنع دخولها ويمكن ان نطرح بعض النصائح :
*الحرص على النظافة الدائمة للمنزل ،
*التهوية الجيدة لغرف المنزل ودخول أشعة الشمس لقتل الحشرات التى لا ترى إلا بالعين المجردة . شركة رش مبيدات بابها
*التخلص من القمامة أول بأول حتى لا تكون عرضه للأنتشار الحشرات .
نتظيف خزانات الطعام وتهويتها جيدة، والتخلص من الفضلات ، وغلق المحكم للبرطمانات للطعام التى تواجد فى خزانة حتى لا تكون مصدر لتسرب الحشرات .
*وضع سلك شبكة صغير الحجم على النوافذ والأبواب ، وسد الثقوب والشقوق بالأسمنت اوجبس ،لكى لا تتسرب الحشرات منها .
*تنظيف الأطباق وأوانى الطعام بعد استعمالها مباشرة ، لأنها قد تسبب فى خروج الحشرات من المكان التى تعيش فيه .
*عدم ترك فضلات الطعام على مائدة الطعام ، وتنظيف بصفة دورية تمنع من أنتشار الحشرات والوقاية منها .
وهناك حشرات متعددة قد تسبب للأنسان أزعاج دائم ومنها : النمل والصراصير والبق والذباب والناموس والفئران .
النمل نوعان * النمل عادى مصدر غذائه فضلات الطعام ويعيش فى ثقوب وشقوق المنزل . شركة مكافحة النمل الابيض بخميس مشيط
والنمل الأبيض يسمى ( العتة) وهو يحتاج إلى طعام الدائم لكى يبقى على قيد الحياة ، مصدر غذائه السكر (الجلكوز) الموجود فى الخشب ، و المتواجد فى الأبواب والنوافذ والأثاث ، وقد يسبب خطر كبير على منزلك فالنمل الأبيض يعمل ممرات ويقوم بتأسيس بيت له أسفل المنزل ، ويكون دمار بمرور الوقت وأضرار فادحة لايمكن اصلاحها إلا بعد فوات الآوان . شركة مكافحة حشرات بابها
ويمكن التخلص من النمل الأبيض برش مبيدات كيمائية مخصص لها أثناء بناء الأثاث فى الأرض ، وعند تركيب الأبواب التأكيد من أغلاق جميع الفتحات فى جوانب الباب وألأفضل تركيب الأبواب بالمفاصل وليس بالمواد اللزقة ، وعند شراء الأثاث الضغط على الخشب وتأكد مدى قوتها وعدم أصابتها بالنمل الأبيض .
أما النمل العادى التى يتواجد المطبخ يمكن التخلص منه بقليل من الصودا المخلوطة بالسكر وضعها فى الثقوب والفتحات التى تخرج منها فالنمل يموت فى الحال .
فى خزانة الطعام نضع فيها قليل من القهوة المرة أو الفلفل غير المطحون فهو يخلصك من النمل نهائيا وكذلك الحشرات الأخرى . شركة مكافحة النمل الابيض بابها

 

Post a Comment

Back to BizOpinion main page

: See newer blog items : : See older blog items :

BizOpinion site feed
ADVERTISEMENT
ADVERTISEMENT

wisbusiness.com Social News

Follow Us

Site Sponsors

ARCHIVE

· January 2009
· February 2009
· March 2009
· April 2009
· May 2009
· June 2009
· July 2009
· August 2009
· September 2009
· October 2009
· November 2009
· December 2009
· January 2010
· February 2010
· March 2010
· April 2010
· May 2010
· June 2010
· July 2010
· August 2010
· September 2010
· October 2010
· November 2010
· December 2010
· January 2011
· February 2011
· March 2011
· April 2011
· May 2011
· June 2011
· July 2011
· August 2011
· September 2011
· October 2011
· November 2011
· December 2011
· January 2012
· February 2012
· March 2012
· April 2012
· May 2012
· June 2012
· July 2012
· August 2012
· September 2012
· October 2012
· November 2012
· December 2012
· January 2013
· February 2013
· March 2013
· April 2013
· May 2013
· June 2013
· July 2013
· August 2013
· September 2013
· October 2013
· November 2013
· December 2013
· January 2014
· February 2014
· March 2014
· April 2014
· May 2014
· June 2014
· July 2014
· August 2014
· September 2014
· October 2014
· November 2014
· December 2014
· January 2015
· February 2015
· March 2015
· April 2015
· May 2015
· June 2015
· July 2015
· August 2015
· September 2015
· October 2015
· November 2015
· December 2015
· January 2016
· February 2016
· March 2016
· April 2016
· May 2016
· July 2016
· August 2016
· October 2016
· December 2016
Copyright ©2013 WisBusiness.com All rights reserved. | WisOpinion.com | WisPolitics.com  |  Website development by wisnet.com LLC  | Website design by Makin’ Hey Communications