January 3, 2005

Jauch Praises Governor Doyle’s Angel Investment Network

Important Initiative will Spur Venture Capital Investment throughout Wisconsin

MADISON—State Senator Bob Jauch (D-Poplar) praised today the creation of an Angel Investment Network by Governor Jim Doyle. As a phase of the Governor’s  "Grow Wisconsin" plan, the comprehensive strategy is a blueprint to foster the growth of high-tech businesses statewide, create high-wage, high-end jobs, and to build a strong economy from the ground up.

“It is easy and natural to look toward big cities for investment and economic growth, but this proposal rightly recognizes that there is talent and that there are resources in rural Wisconsin as well,” the northern lawmaker said.

The mission of the Wisconsin Angel Network (WAN) is to build angel network capital capacity throughout Wisconsin by increasing the number and amount of seed-stage equity investment dollars in Wisconsin companies. This will be accomplished by creating a sustainable umbrella organization to provide logistical services and support to angel investing networks.

“Angel investors in Madison and Milwaukee already have some resources and direction for making their investments,” Jauch said. “And while this proposal will encourage and produce investors from those markets, it will also serve as a valuable blueprint for growth in regions of the state that we don’t typically think of as areas with high wealth, yet do have resources to offer if properly plugged in,” the Poplar Democrat said.

According to Governor Doyle’s office, The Wisconsin Angel Network will:

·        Provide needed resources for angel networks, including organizational and administrative services, research, facilitation, and educational and networking programs.

·        Enhance deal flow by facilitating cooperation among angel networks and early stage venture capital firms.

·        Provide professional guidelines for angels screening deals and for investors seeking to create diversified, strong portfolios that minimize risk.

·        Provide criteria for entrepreneurs through the Wisconsin Entrepreneurs Network (WEN) to ensure entrepreneurs understand what angel investors are looking for.

·        Increase the amount of angel and/or seed dollars available by increasing the number of angel networks and angel investors throughout the state, and connecting them to investment opportunities.

·         Establish measurements to strengthen data on angel investing activity, to assess best practices and to encourage participation. WAN will identify current angel activity in the state and measure improvements.

“Across this State there are men and women with good ideas and sound business plans that can successfully create jobs if they receive the right kind of financial investment,” Jauch said. “This strategy will expand the opportunities for these citizens and create economic growth opportunities in rural Wisconsin so all citizens are assured opportunities to prosper,” he concluded.