Wisconsin has consistently filled the role of the rising underdog when it comes to Midwest venture capital deals. In 2020, 91 Wisconsin companies raised a collective $293 million in capital, according to the National Venture Capital Association (NVCA). This is up $44 million from 2019. Yet, the state is still playing catchup to its Midwest neighbors such as Michigan ($3.3 billion), Illinois ($2.6 billion) and Minnesota ($1.9 billion).
Wisconsin and Washington were among the states with the highest year-over-year increases in VC assets under management (AUM). At the end of 2020, 37 states had more than $100 million in AUM, a meaningful increase over the 31 states that had more than $100 million in AUM at the end of 2019 and a sign of venture capital’s momentum outside of California, Massachusetts and New York, according to the NVCA.
The amount of capital per deal varied widely. In 2020, Wisconsin companies raised about $3.6 million per deal on average for its 98 deals compared to $2.9 million for its 68 deals in 2019. Meanwhile, Michigan saw an average of $22.7 million for its 147 deals, while Illinois saw an average of $8.1 million for its 321 deals.
Listed below are some of the biggest VC deals in Wisconsin during 2020.
Vascugen Inc.
Madison-based biotech company Vascugen Inc. raised a little more than $10 million in capital in 2020 from a pool of three Indiana-based investors, according to Pitchbook. The company’s mission involves using patented technology to advance a donor-independent cell replacement therapy for millions of patients suffering from severe, untreatable vascular diseases. This round of investment ranked as the largest deal in Wisconsin that year, according to Pitchbook.
Sift Healthcare
No. 2 in Wisconsin was Milwaukee’s Sift Healthcare, which raised $2.8 million from two Wisconsin-based VC firms—River Capital Partners and Winnebago Seed Fund, according to Sift Healthcare. The company uses artificial intelligence to analyze health care billing payments and facility revenue.
Light Bio Inc.
Mount Horeb-based Light Bio Inc. came in at No. 3, raising $2 million from an undisclosed angel investor, according to Pitchbook. The company specializes in applying artificial bioluminescence to living plants to aid in scientific research.
