Madison-based startup certified by state as Qualified New Business Venture
Tax credits for investors will help ThirdSpace raise capital to accelerate company’s growth
MADISON, WI. Aug. 8, 2017 – ThirdSpace, a Madison startup developing tools to improve employee engagement, has 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.
Investors in ThirdSpace, founded in 2014, are authorized to receive up to $187,500 in state income tax credits through March 2018.
“We are extremely excited to receive the QNBV certification from the WEDC,” said Zach Blumenfeld, who co-founded the company with Scott Koh and Scott Jens. “This will not only help ThirdSpace as we are out fundraising, but it aligns with our goals of bringing more jobs to Madison as we continue to grow.”
ThirdSpace is a finalist for the Greater Madison Area Chamber of Commerce’s Pressure Chamber pitch event and present to a panel of out-of-state investors on Aug. 21. The company also received an award for its innovative design from Marginalia, an online magazine that focuses on workplace culture.
In addition, ThirdSpace was a finalist in the 2017 Wisconsin Governor’s Business Plan Contest sponsored by the Wisconsin Technology Council.
ThirdSpace is currently raising funds to accelerate growth and scale the company. Funds will be primarily used to hire on more sales and marketing personnel, with a small percentage reserved for feature enhancements of the ThirdSpace software. The company plans to create 18 new jobs over the next three years.
“Wisconsin’s entrepreneurial community is incredibly vibrant, and a core part of WEDC’s mission is to support that community and nurture its future health,” said Aaron Hagar, WEDC’s vice president of entrepreneurship and innovation. “Helping innovative Wisconsin companies like ThirdSpace secure access to capital is one way in which WEDC supports 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.
In 2016, the program helped 84 startups throughout the state draw more than $250 million in total financing, with the help of $17.9 million in tax credits. Three industries in particular saw the largest share of funding in 2016: information technology ($105 million); biotechnology ($69 million); and health technology ($35 million).
The program is one component of WEDC’s suite of entrepreneurship resources, which includes support for startup accelerators, seed capital funds and technology 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.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. It has not been verified for its accuracy or completeness.
