Wisconsin’s state-backed venture capital program the
Badger Fund of Funds is getting another $25 million to support entrepreneurs. The funding is part of the 2023-25 state budget signed by Gov. Tony Evers on Wednesday.
"This significant investment is aimed at continuing to further develop Wisconsin’s start-up business ecosystem,” said Evers in his budget veto message. “Improving Wisconsin’s entrepreneurial environment is vital to the state’s economic success, especially in high-growth industries in medical and informational technologies. As a result of my partial veto, the additional $25 million provided by this budget will be evergreen, allowing these new funds to continue to be invested in our state’s entrepreneurs.”
The State of Wisconsin awarded $25 million to New Mexico-based Sun Mountain Capital and Stoughton-based Kegonsa Capital Partners LLC in 2013 to establish the Badger Fund of Funds, which raised another $10 million from the private sector and agreed to create several venture capital firms across the state.
The Badger Fund has made commitments to a total of five venture capital funds, including four seed stage funds and one growth stage fund, according to the Department of Administration's most recent quarterly report. Three of these funds, Gateway Capital Fund, Winnow Fund and Rock River Capital Partners, are still within their investment periods and actively making investments in new companies. The other two funds, Idea Fund of La Crosse and the Winnebago Seed Fund, are making follow on investments in existing portfolio companies.
The Badger Fund invests only in companies that the state has designated Qualified New Business Ventures, which make investors eligible for tax credits.
In the first quarter of 2023, the Gateway Capital Fund made a new investment into Burlington-based Ictect and Rock River Capital Partners made an investment into Brookfield-based Distribution Depot.
