• WisBusiness

Monday, November 23, 2015

MaryBeth Matzek: BrightStar another funding option for start-ups


By MaryBeth Matzek

It's no secret Wisconsin start-ups have a challenging time finding investors. The Badger State consistently ranks low on surveys related to angel investing and venture capitalists. But that didn't deter Tom Shannon, who decided to take advantage of the state's rich philanthropic history to help early-stage, rapid-growth companies.

The result is the BrightStar Wisconsin Foundation – a non-profit organization that invests in start-ups.

"If you want a vibrant economy, you need job creation and these start-ups have the power to create jobs," says Shannon, who donates his time as BrightStar's president and CEO. "We have a great university system in Wisconsin, we have lots of people with great ideas, but we don't have enough money to get those ideas off the ground."

Shannon formulated the idea for BrightStar after seeing state budget dollars for investment in Wisconsin startups cut, including the elimination of all biotech firms from consideration. To get the ball rolling, he and seven other initial investors put up $5 million of their own funds to start the foundation.

"Seeing that money cut from the budget really irritated me so I went to the WEDC to see if we got a foundation if they would help us fund staff," he says. "We're unique. I don't know of anything else like this in the country. People have approached me about how we've done it so I think the idea will spread elsewhere."

A former director of the Wisconsin Angel Network, Shannon has an impressive business background. He's a lead investor in several companies and was the CEO of Prodesse Inc., a biotech firm until it was sold Gen-Probe Inc. in 2009 for $72 million.

BrightStar has invested more than $3.76 million in 26 companies since it received nonprofit status from the Internal Revenue Service in February 2014. Investments range in size from $50,000 to $250,000.

"We don't lead deals. We work with other organizations and rely on their due diligence and take that information our investment committee," Shannon says. "Our goal is to help provide the necessary funds to get the deal done." Shannon says he often uses a donor's interest in education to gain their support for BrightStar.

"There are a lot of people in Wisconsin who give to education and I view this as the next step – creating jobs so the young people we're educating stay here and help us grow our state," Shannon says. "The donors don't expect the money back. All money made on deals gets invested right back into the foundation to help us create more jobs. They also get that tax break."

Some BrightStar donors are interested in helping early-stage businesses, but aren't interested in angel investing because of the expected involvement.

"I'm an angel investor and there are things you need to do, papers to sign and these people aren't interested in that," he says.

Through some of its investments, BrightStar has accumulated $300,000 in Qualified New Business Venture credits. As a non-profit, it can't take advantage of the credits so Shannon says BrightStar is looking to sell them to individuals or companies and then invest those funds to keep the foundation growing.

"Everything we do is about furthering early-stage investment and creating jobs," he says.

Increased SBA dollars

Another resource for businesses looking for funding – the Small Business Administration – saw the amount of dollars loaned to Wisconsin businesses increase 12 percent during the fiscal year that ended Sept. 30.

A total of 1,733 small state businesses used SBA-guaranteed funds to grow or start their companies. Loan approvals for the SBA's 7(a) and 504 programs totaled $607.6 million, up from the $542.4 million loaned to 1,674 businesses in fiscal 2014.

Of the loans given out in the most recent year, 35.5 percent went to 618 new businesses. In addition, more than 60 percent of loans were $150,000 or less as borrowers took advantage of a program that drops fees for loans under that amount.



-- Matzek, a freelance writer and editor, is the owner of 1Bizzy Writer. She has worked in the past as a news editor at Insight Publications and as business editor at the Appleton Post-Crescent.

Labels:


Comments: 40

At November 30, 2015 at 10:56 PM, Blogger Assignments Provider said...

I used to be able to realize sensible data from your articles.
Latent Function Sociology Help

 
At December 1, 2015 at 12:14 AM, Blogger Operations Management said...

Nice work Done here. Keep Sharing
Linear Programming Homework Help

 
At December 1, 2015 at 12:45 AM, Blogger Albertam Brose said...

I am really happy to read this post..thanks for giving us intersting info. I appreciate this post. I used to be able to find nice information from your content.
ASP Assignment Help

 
At December 1, 2015 at 1:37 AM, Blogger Matlab Assignment Helper said...

Thanks a lot for the post. It has helped me get some nice ideas. I hope I will see some really good result soon.
Simulink Matlab Help

 
At December 1, 2015 at 1:59 AM, Blogger Hr Assignment said...

Great post, just what i was finding for and i am looking forward to reading your more posts soon!
HRM homework Help

 
At December 4, 2015 at 4:28 AM, Blogger UK Essay said...

Here is an good overview for your options for financing a new business. So start ups be prepared to reconsider your idea for a business. Check out this great resource.
http://www.startupdonut.co.uk/

 
At December 11, 2015 at 5:08 AM, Blogger Manton Angus Angus said...

Hard work is needed to attain win in our life. This could be apply in any level of our life. If we are looking to score
good in study or to succeed in our life or anything. Some are hiring help from custom essay
writing service
to get good paper for the assignment task.

 
At December 16, 2015 at 11:34 AM, Blogger mohammad ghorbani said...


تعمیر لباسشویی - کرکره برقی - اخبار فرهنگی هنری امروز - ترجمه انگلیسی به فارسی - اخبار ایران و جهان - پذیرش مقاله در مجلات isi - نگارش پایان نامه - تبدیل پایان نامه به کتاب - آتلیه عروس -

 
At December 17, 2015 at 3:28 AM, Blogger Michael Jones said...

Truly, this article is really one of the very best in the history of articles. I am a antique ’Article’ collector and I sometimes read some new articles if I find them interesting.
Assignment Help | Assignment Help online

 
At December 23, 2015 at 4:16 AM, Blogger Alex Jones said...

We are providing best assignment writing service in UK and high quality assignment. All Assignment help experts provide top rated and cheap assignment online services. https://www.allassignmenthelp.co.uk
Assignment Help

 
At December 23, 2015 at 4:17 AM, Blogger Alex Jones said...


I am happy to find much useful information in the post, writing sequence is awesome, I always look for quality content, thanks for sharing.
Homework Help Online

 
At December 29, 2015 at 11:38 PM, Blogger john said...

This post shared interesting information for me. I would like to say that this information is really very helpful for me. uk best rubber gym mats

 
At February 10, 2016 at 12:05 AM, Blogger Edna Jonas said...

Good to read! Thanks for describing the topic in an impressive and convincing manner. Please keep on sharing! To get creative ideas in writing visit admission essay writing service

 
At February 10, 2016 at 3:06 AM, Blogger David Clarke said...

If you need a good term paper or even dissertation, then you can always rely on custom writing company! Most of them perform high quality tasks in the short term. Read reviews to find the best company for you!

 
At March 22, 2016 at 4:42 AM, Blogger Michael Jones said...


Truly, this article is really one of the very best in the history of articles. I am a antique ’Article’ collector and I sometimes read some new articles if I find them interesting.
Assignment Help

 
At March 24, 2016 at 1:41 AM, Blogger Alex Jones said...

Nice blog and absolutely outstanding. You can do something much better but I still say this perfect. Keep trying for the best.
Assignment Help

 
At April 1, 2016 at 4:23 AM, Blogger Hieu Nguyen said...

You need to kill time, you need entertainment. Refer to our website. hope you get the most comfort.
Thanks for sharing !
Friv 5
Kizi 1
Yepi 3

 
At April 12, 2016 at 3:19 AM, Blogger Loren Hill said...

Thanks for your information! I know where everyone can order essay on 30 different topics they need, just address to custom term papers.

 
At April 18, 2016 at 7:02 AM, Blogger malina loren said...

Get Australia assignment help for university students at an affordable price from Paper Provider Australia. Get an assignment help in Perth from experts in Australian.

 
At May 14, 2016 at 5:09 AM, Blogger Kristina Brown said...

This was very nice and impressive post i really love it you shared the great post with us it is very informative and helpful post i really appreciate that your work are so good thank you for sharing this positive info with us.
Assignment Help

 
At May 17, 2016 at 11:58 AM, Blogger Wendy Smith said...

That is wonderful to read about the experience of Tom Shannon, who decided to take advantage of the state's rich philantropic history. I got much pleasure to reading the quotes. BY the way, in case your headache is a college paper. Please, find more information about this service

 
At May 24, 2016 at 11:39 PM, Blogger ane semprul said...

This blog is so nice to me. I will continue to come here again and again. Visit my link as well. Good luck
obat aborsi
cara menggugurkan kandungan
obat telat datang bulan
obat penggugur kandungan

 
At June 11, 2016 at 1:16 PM, Blogger Priti Gupta said...

Make My Assignments|Assignment help make customized assignments. Our team of experts is ready to make your assignments 24x7. We provide 100% Plagiarism free work
Finance Assignment help |
Best Assignment help Service | Assignment making service

 
At July 20, 2016 at 6:57 AM, Blogger Sama Engineering said...

Great Content, thanks for posting it and just to give a heads up I've seen this topic discussed frequently elsewhere.
Packaging machine supplier

 
At July 29, 2016 at 5:09 AM, Blogger Kelly Suttle said...

A option of loans for unemployed, I finally managed to avail easy cash without much of any inconvenience.
loans for unemployed

 
At August 8, 2016 at 9:08 PM, Blogger Thuy Trang said...

I usually use two applications retrica , b612 to capture and edit photos. It is very beautiful. And to speak and daily news updates from friends, I use baixar facebook , baixar facebook

 
At August 23, 2016 at 4:35 AM, Blogger Sean paul said...

Dissertation Guidance Provides quality Online Dissertation Help for students Accounting Thesis Assistance

 
At August 31, 2016 at 1:46 AM, Blogger Albert Thomas said...

The leading assignment help UK firm offers state of the art services to its clients with a promise of delivering all the required work well within the deadline English online help

 
At October 14, 2016 at 5:20 AM, Blogger Eden Alaster said...

Hi buddy, your blog' s design is simple and clean and i like it. Your blog posts about Online Dissertation Help are superb. Please keep them coming. Greets!!Accounting Homework Help

 
At October 14, 2016 at 6:12 AM, Blogger Eden Alaster said...

I appreciate your efforts in preparing this post. I really like your blog articles.
MBA Dissertation Writing Service

 
At October 20, 2016 at 5:11 AM, Blogger Unknown said...

I have just started learning cooking and blessed with your blog. Eva Seeds oil Thank you for sharing delicious recipes. Recipes I make them and get praised. Thank you

 
At November 24, 2016 at 1:50 AM, Blogger Firmansyah Herb said...

The information you have to say this is very nice Obat Cacar Air Obat Jerawat Di Punggung I am very happy because it can get very useful information this Obat Benjolan Di Leher Bawah Telinga Obat Sakit Leher It would be nice if you continue to renew other recent information that would be helpful for many people Obat Infeksi Saluran Kemih Obat Sakit Lutut Maybe in the future I will be back this here Obat Benjolan Di Pergelangan Tangan Obat Lipoma Greetings wish them all success Obat Kencing Batu Obat Mengatasi Mata Berair

 
At February 6, 2017 at 3:50 AM, Blogger Happy New Year 2018 said...

If you want to make your New Year fully enjoyable with kith and kens then you can get such admirable services for the better selections of Happy New Year 2018. We are always there to help you with the good items from our services with the assured ways. 2018 happy new year, Happy new year, Happy new year 2018, New year 2018, Happy new year 2018 images, New year 2018 images, New year images 2018, Happy new year images 2018, 2018 happy new year images, Valentines Day 2017, Happy valentines day 2017, Happy valentine day 2017, Happy new year, Merry christmas, Merry christmas wishes, Merry christmas wishes, Happy new year 2018, Happy new year 2018

 
At March 24, 2017 at 5:26 AM, Blogger Jessica Rodz said...

Keeping the focus on pursuing study largely depends upon how financially secure you are. The financial shortage may not allow you to fulfil all your aspirations, but taking help of a loan definitely prove beneficial for you. Few months back, I also applied for loans for students with no guarantor option and now I have completed my graduation without any financial disturbance.

 
At March 30, 2017 at 4:45 AM, Blogger kelinci said...

Great post & useful. Thanks
Jual Kelinci
Kelinci
Jual Kelinci
Perkelincian
Kelinci Jual

 
At June 21, 2017 at 11:16 AM, Blogger Marcelus-Author said...

A very informative blog. Very useful content. Online Help to Solve Your Accounting Assignments

 
At June 23, 2017 at 7:52 AM, Blogger Teresa Hamilton said...

Thank you for sharing the post! It's great to find another funding chance.
instagram online

 
At July 15, 2017 at 1:48 PM, Blogger Ahmed Ali said...

http://indvspaklivehighlights.com/live-barcelona-vs-real-madrid/
https://www.goldcup2017live.us/international-champions-cup-live/
http://www.matchlive.ga/real-madrid-vs-barcelona-live-stream/
https://www.facebook.com/BarcelonavsRealmadridLiveStreamingSupercopa/

 
At September 5, 2017 at 3:55 AM, Blogger roose singh said...

Escort Service in Noida


Noida Escort Service


escort in noida

escort service in noida

Noida Escorts

Noida Escorts service


Independent Call girl In Noida


Call Girl in Noida


Agra Escorts


Escort Service in Greater Noida


Greater Noida Escort Service


Greater Noida Escorts


Call Girl In Greater Noida


Escort Service In Ghaziabad


Ghaziabad Escort Service


Escort Service In Indirapuram


Indirapuram Escorts


Dwarka Escorts

Escort Service In Dwarka

 
At September 28, 2017 at 5:56 AM, Blogger Assignment Help said...

It is imperative that we read blog post very carefully. I am already done it and find that this post is really amazing.
Assignment Expert

 

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