Two Wisconsin startups certified as Qualified New Business Ventures
Tax credits for investors will help Re Mixers Inc. and Au Naturale Cosmetics Inc. raise capital for future growth
MADISON, WI. March 28, 2017 – Two Wisconsin startup companies have received Qualified New Business Venture (QNBV) certification from the Wisconsin Economic Development Corporation (WEDC).
QNBV status allows investors in qualified startup and early-stage companies to receive a 25 percent state tax credit on the amount they invest in the business. The program, one of several WEDC initiatives aimed at supporting startups, helps early-stage companies secure new investment and accelerates their potential for growth and job creation in Wisconsin.
Madison-based Re Mixers Inc., which has developed an innovative mixing nozzle for two-component adhesives, and Au Naturale Cosmetics Inc., a Green Bay developer and manufacturer of all-natural cosmetics, have each been certified to receive up to $125,000 in investor tax credits.
Re Mixers was founded in 2016 by two University of Wisconsin-Madison College of Engineering graduates, Eric Ronning and Brian Pekron. The company has developed a disposable mixing nozzle that reduces waste in the two-component industrial mixing process involving epoxy and hardener. The nozzle can increase the performance of two-part epoxies by up to 20 percent while reducing the amount of adhesive waste by half.
Re Mixers took second place in the 2016 Governor’s Business Plan Contest, and in December secured a $500,000 investment from N29 Capital Partners. The company is seeking additional investment to commercialize the mixer.
“The QNBV process was instrumental in helping us find the right early-stage investor,” Ronning said.
Founded in 2011 by Ashley Prange after she had a negative reaction to the synthetics in the leading cosmetic brands, Au Naturale Cosmetics produces handcrafted professional-grade cosmetics that are 100 percent natural, gluten-free, cruelty-free, vegan and are made with organic ingredients.
The company is currently raising funds to support its continued rapid growth and to allow it to improve its ability to test and produce new products.
“Working with WEDC has brought a level of support from the state of Wisconsin that I was hoping to receive when moving my startup company from Washington, D.C., to northeast Wisconsin,” Prange said. “As my company continues to grow and create more jobs in Green Bay, I am glad to have WEDC on our side.”
“By helping startups like these gain access to the capital necessary for growth, the QNBV Program is contributing to a thriving entrepreneurial ecosystem in Wisconsin,” said Aaron Hagar, WEDC’s vice president of entrepreneurship and innovation. “This is one of the ways in which WEDC invests in the state’s next-generation companies.”
The QNBV Program helps startups close a critical gap in their development by offering tax credits for investments made in QNBV-certified companies. Participating businesses innovate and commercialize products in numerous industries including biotechnology, manufacturing, health technology, energy, information technology and more.
Since its inception in 2005, the QNBV Program has helped more than 300 companies raise $1.4 billion in total investment. In 2015, the program helped 180 startups throughout the state raise $176 million, with the help of a record $18.3 million in tax credits.
The program is one component of WEDC’s suite of entrepreneurship resources, which includes support for startup accelerators, seed capital funds and technology development loans. In addition, WEDC supports and engages an existing statewide network of partners that offers business training, mentorship and financing to aspiring entrepreneurs.
About the Wisconsin Economic Development Corporation
The Wisconsin Economic Development Corporation (WEDC) leads economic development efforts for the state by advancing and maximizing opportunities in Wisconsin for businesses, communities and people to thrive in a globally competitive environment. Working with more than 600 regional and local partners, WEDC develops and delivers solutions representative of a highly responsive and coordinated economic development network. Visit www.inwisconsin.com or follow WEDC on Twitter @_InWisconsin to learn more.
Mentioned in This Press Release
Recent Press Releases by Wisconsin Economic Development Corporation
WEDC awards $109,877 grant to support plans to convert former warehouse into city’s first brewery in 50 years
State backs successful entrepreneurship program for third straight year
Wisconsin Economic Development Corporation to help fund public infrastructure for new stadium for minor-league basketball team