State early stage investing hit $374 million in 2024; lowest since 2018 but signs of resilience remain

MADISON, Wis. – Investments in young, Wisconsin-based companies by angel, venture capital and other equity investors totaled $374 million in 2024, the lowest total since 2018 but still solid by historical standards.

Research by the Wisconsin Technology Council for its annual “Wisconsin Portfolio” report captured 92 separate deals involving 61 unique funds, networks and accelerators. Investor data was unavailable for about two-thirds of those deals, but at least 42 out-of-state investors participated in 21 funding rounds. Those 21 rounds alone raised $292 million, or 78% of the total capital tracked.

The top 10 deals by dollar size accounted for 70% of all capital raised, highlighting the outsized role of a few large rounds. However, the median deal size reached $1 million – the highest in more than a decade – showing strength in the broader base of startups.

More than half (53%) of all funded companies raised $1 million or more, marking the largest proportion to do so in more than 10 years. Also, 33% of companies were new recipients of early stage funding, while the remaining 67% attracted follow-on investment, pointing to sustained confidence in Wisconsin’s existing startup ecosystem.

“The formation of the Wisconsin Innovation Fund is a reason for optimism, as is the continued success of the Badger Fund of Funds and our larger venture capital firms,” said Tech Council President Tom Still. “We think modernization of Wisconsin’s Qualified New Business Venture tax credits, essentially unchanged since 2005, is a priority we hope to address.”

Using public reports, filings, and proprietary investor surveys, the Tech Council tracked a total of $374 million invested in 92 companies. The average round size was $4.1 million.

Other key findings:

• Of the 92 deals tracked, the majority occurred in the Madison and Milwaukee regions, with others spread throughout the state.
• Healthcare and information technology continued to dominate in both the number of deals and total dollars, while energy, ag-tech and advanced manufacturing sectors also showed gains.
• One-third of funded companies were first-time recipients, underscoring the health of Wisconsin’s startup pipeline.

“Despite a tougher environment, we’re encouraged to see continued backing of Wisconsin startups from in-state and out-of-state investors,” said Joe Kremer, director of the Tech Council Investor Networks. “With smart policy moves and targeted investment efforts like the Wisconsin Innovation Fund, we can build on this momentum.”

The 17th annual “Wisconsin Portfolio” report is available online at www.wisconsintechnologycouncil.com. Print versions, which include charts and features, can be requested at julie@wisconsintechnologycouncil.com.

Thank you to our sponsors: Baird Capital, Exact Sciences, Husch Blackwell, Madison Development Corp., State of Wisconsin Investment Board, Venture Investors, and the Wisconsin Economic Development Corp.

The Tech Council Investor Networks are among major Tech Council programs and projects, which also include the Tech Council Innovation Network, the Governor’s Business Plan Contest, the Wisconsin Entrepreneurs’ Conference, the Wisconsin Tech Summit, the Wisconsin Early Stage Symposium, and the Wisconsin Innovation Awards.

To learn more or to join TCIN, visit: https://wisconsintechnologycouncil.com/investors/membership/

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.