http://blogs2.startribune.com/blogs/pending/2008/04/21/and-now-a-word-from-mr-wright/ Patent Pending blog Sun, 08 Nov 2009 10:40:55 +0000 http://wordpress.org/?v=2.3.3 http://blogs2.startribune.com/blogs/pending/2008/04/21/and-now-a-word-from-mr-wright/#comment-10 Pete Wed, 23 Apr 2008 18:03:13 +0000 http://blogs2.startribune.com/blogs/pending/2008/04/21/and-now-a-word-from-mr-wright/#comment-10 Act 255 in Wisconsin changed the early stage investment environment for start ups dramatically. $ 3.0 million in state tax credits stimulated almost $ 18 million in private investment in nearly 30 early stage Wisconsin technology companies since the legislation was enacted. I had the unique experience of witnessing this first hand as the Business Development VP for Nerites Corporation in Madison while raising money from local angels in the Madison area. Nerites has since gone on to have a very successful institutional Series A round and is now on a high growth trajectory. None of which would have happened without Act 255. The side effect of this legislation is that it created a tool by which the private investment community was incentivized into making higher risk but well grounded investments. In other words, it allowed for the gap funding needed by early stage companies to get through a proof of concept to demonstrate viability to institutional investors based upon technical and managerial merit. If the state wants to help the start up community, passing legislation like Act 255 is a great way to do it. Otherwise, forget trying to artificially stimulate job growth by creating more quazi state sponsored and under funded “alliances” and “zones” which only sews confusion and erodes credibility with the investment community. We past that point years ago. The immediate issue is to pass legislation that will target and stimulate sound investments by professionals into great technologies and management teams, then get out of the way and watch growth happen. Act 255 in Wisconsin changed the early stage investment environment for start ups dramatically. $ 3.0 million in state tax credits stimulated almost $ 18 million in private investment in nearly 30 early stage Wisconsin technology companies since the legislation was enacted. I had the unique experience of witnessing this first hand as the Business Development VP for Nerites Corporation in Madison while raising money from local angels in the Madison area. Nerites has since gone on to have a very successful institutional Series A round and is now on a high growth trajectory. None of which would have happened without Act 255. The side effect of this legislation is that it created a tool by which the private investment community was incentivized into making higher risk but well grounded investments. In other words, it allowed for the gap funding needed by early stage companies to get through a proof of concept to demonstrate viability to institutional investors based upon technical and managerial merit. If the state wants to help the start up community, passing legislation like Act 255 is a great way to do it. Otherwise, forget trying to artificially stimulate job growth by creating more quazi state sponsored and under funded “alliances” and “zones” which only sews confusion and erodes credibility with the investment community. We past that point years ago. The immediate issue is to pass legislation that will target and stimulate sound investments by professionals into great technologies and management teams, then get out of the way and watch growth happen.

]]> http://blogs2.startribune.com/blogs/pending/2008/04/21/and-now-a-word-from-mr-wright/#comment-9 Frank Jaskulke Mon, 21 Apr 2008 21:13:49 +0000 http://blogs2.startribune.com/blogs/pending/2008/04/21/and-now-a-word-from-mr-wright/#comment-9 Phil - these are issues that the members of LifeScience Alley are facing everyday - and our organization has been working with them, Minnesota's political leaders and others to find solutions, often looking to Wisconsin for inspiration. I'd love to hear your thoughts about what is going on and your thoughts about some of the proposals we have been advancing - you can contact me at fjaskulke@lifesciencealley.org or 952-542-3077 (main line, ask for Frank) Phil - these are issues that the members of LifeScience Alley are facing everyday - and our organization has been working with them, Minnesota’s political leaders and others to find solutions, often looking to Wisconsin for inspiration. I’d love to hear your thoughts about what is going on and your thoughts about some of the proposals we have been advancing - you can contact me at fjaskulke@lifesciencealley.org or 952-542-3077 (main line, ask for Frank)

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