Investments in the early stages of Wisconsin entrepreneurial companies increased 67 percent from 2014 to 2015 according to a report published by the Wisconsin Economic Development Corporation.
According to the report, more than $231 million was invested in Wisconsin companies in 2015. The 67 percent increase was in “early stage investments,” which are investments made into a company when it is first starting, Dan Olszewski, director of the Weinert Center for Entrepreneurship, said.
Olszewski said companies like Apple, Microsoft and Google all received early stage funding. He said the Wisconsin companies are similar because they are considered “high growth,” or equipped with high potential for growth.
A few big investments can cause investment numbers to bounce around, Olszewski said, but the report’s results are “still very good news.”
University of Wisconsin Senior Associate Dean for Faculty and Research Russell Coff said the increase indicates more investors are willing to take on the risk of putting money into early stage, potentially unstable, entrepreneurial companies. Coff said during the early stages a company has a high potential to fail.
“Overall it’s a sign of optimism in the economy — that [investors] are willing to invest in these entrepreneurship companies at an early stage,” Coff said.
Olszewski said besides investors’ willingness to take risks, high quality ideas from Wisconsin companies contributed to the investment increase.
A major force behind the increase was investment in EatStreet, an online food delivery program that was started by UW students, Olszewski said. The company is continuing to grow and attract investors, he added.
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Another company that contributed to the increase was Flugen, a technology-based company created by UW researcher Yoshihiro Kawaoka to help prevent virus outbreaks, Olszewski said.
Olszewski said these companies will continue to grow and employ more people, simultaneously improving Wisconsin’s economy.
“They’re looking for good investments … so the fact that they’re choosing them in Wisconsin is a good sign,” Olszewski said.
