• WisBusiness

Thursday, May 30, 2013

Mike Kuglitsch, Fred Clark: Time to get serious on venture capital

Mike Kuglitsch

Fred Clark
There may be few things legislators from both parties agree on these days, but one of them is the need to create more good paying jobs here in Wisconsin. So when a proposal comes around that offers solid prospects of spurring private sector job creation in emerging companies that are helping create our new economy, the public has a right to expect legislators to work together to get it done. Now is that time.

The venture capital legislation (AB-181) we introduced, along with Senator Darling and Senator Cullen, will give a much-needed boost to our state's lagging venture capital industry. Venture capital is an essential component of providing financing for innovative businesses that are pioneering new products or new technologies. Financial institutions usually won't offer traditional financing for start-up businesses in emerging fields. Without venture capital many of our most promising companies in Wisconsin today would never have made it.

Unfortunately, Wisconsin attracts only about one-half of 1 percent of the venture capital invested each year in the United States. We consistently lag behind Illinois, Minnesota and Michigan in total investment dollars. When compared to nine of our peer states with similar size workforces, Wisconsin is tied with Missouri for last place in the average number of venture capital funded deals per year.

As a result of being so far behind some of the most promising start-up companies choose to take their operations to other states where capital is more available.

Despite our relatively poor performance, the success stories made possible by venture capital funding are encouraging. Across the country, venture capital funding tends to be very efficient at allowing growth in job creation. Logistics Health in La Crosse was able to quickly grow to 1,000-plus employees today as a result of timely venture capital funding. Tomo Therapy in Madison, a pioneer in medical imaging, grew to over 600 employees with early venture capital financing. While there are many such examples, we can help make that list much larger with a relatively small investment of state funds to help jump-start this sector.

Our venture capital proposal matches $25 million in GPR funds Governor Walker has already allocated in his budget for economic development with an additional $65 million in private sector funds to create a state backed investment pool managed by a qualified venture capital funds manager.

Our proposal (AB-181) builds in multiple layers of accountability and oversight to ensure a transparent process that protects taxpayers while helping spur the launch of high-growth companies.

In light of the Legislative Audit Bureau's report on WEDC, legislators raised concerns regarding the framework of the legislation. After weeks of discussion, we have introduced a substitute amendment that would move the program from the Wisconsin Economic Development Corporation to the Department of Administration to solve many of the issues members had.

DOA is certainly capable of taking on the reporting requirements and has the in- house tools to join the State of Wisconsin Investment Board (SWIB) in finding an investment manager that is best for the job. Currently, the Secretary of DOA sits on the board of SWIB, and the department does the bidding for private contracts on behalf of Wisconsin.

With DOA now administering our legislation, we have made it abundantly clear that creating jobs is not something we are willing to play politics with. It is time to remove the 'optics' of this legislation and move forward with a bill that is sure to benefit Wisconsin's economy in the years ahead. Both parties need to work together in good faith to send a signal to all the start-up businesses in Wisconsin. Regardless of our opposing political views, we're serious about supporting the growth of new businesses and new jobs in Wisconsin.

-- Kuglitsch, R-New Berlin, represents the 84th Assembly District, which includes parts of Waukesha and Milwaukee counties. Clark, D-Sauk City, represents the 81st Assembly District, which includes parts of Sauk, Iowa, Columbia and Dane counties.

Comments: 3

At September 6, 2017 at 10:18 AM, Blogger aliya seen said...

It is time to remove the 'optics' of this legislation and move forward with a bill that is sure to benefit Wisconsin's economy in the years ahead.


At November 28, 2017 at 10:43 PM, Blogger Vishal Tyagi said...

Hello Friends, Here you will be able to find out the best website for happy wheels online free games and these games are amazing games. You can play these games online without facing any type of problem and these games are available in the different levels. You can play these games with the help of keys as Arrow keys are used to move, Space key is used to jump and Ctrl + Shift keys to grab or throw balls. Try out these games for once.

At August 27, 2018 at 4:33 AM, Blogger Julie T. Kirwan said...

titanium backup pro apk es file explorer pro apk
beach buggy racing mod apk


Post a Comment

Back to BizOpinion main page

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

BizOpinion site feed

wisbusiness.com Social News

Follow Us

Site Sponsors


· 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