By Brian E. Clark
WisBusiness.com
Fledgling life science, information technology and advanced manufacturing companies in Wisconsin are often starved for capital in their early stages.
Enter hamilton.gsp, a newly launched firm that wants to help clients find public funding for their enterprises.
“The federal government alone spends more than $360 billion a year in research, development and procurement,” said John Dick, one of hamilton.gsp’s founders. “We can help clients tap into those sources so they can grow.”
By contrast, he said, venture capital investment in the United States is about $21 billion a year.
The new firm is the creation of GSP, a national economic development consulting firm, and Madison-based Hamilton Consulting Group, which bills itself as one of Wisconsin’s leading economic development and government relations firms. It also has recently begun helping companies get state and local grants.
Dick, who comes from GSP, said his company has helped clients secure more than $400 million in government funding for bioscience and advanced manufacturing companies, non-profits, economic development organizations and universities. He said hamilton.gsp will not seek private sector funding.
Mark Bugher, director of University Research Park, called the consulting firm a welcome addition to Wisconsin’s innovation economy.
“Its strategy to accelerate the formation and growth of new companies by leveraging private funding with public sector funding resources should pay dividends for emerging companies here,” he said.
In addition to seeking public-sector funding, Dick said the new firm will also craft and advocate for technology related public policy and assist in the development of groundbreaking economic development initiatives on behalf of its clients.
Jim Haney, president of Wisconsin Manufacturers and Commerce, said hamilton.gsp “understands that Wisconsin’s emerging industries and is base of mature manufacturing companies are connected and complimentary. Their commitment to supporting both is critical to the continued development of the state’s economy.”
Dick said GSP, which has 10 offices in six states, made its decision to join with Hamilton Consulting after a year of research on 30 market areas.
“Wisconsin is one of the most robust and fastest-growing technology hotbeds in the country, but emerging companies haven’t secured the level of funding that their counterparts in other state have,” Dick said.
He said Wisconsin is ripe for a company like hamilton.gsp because the state lags in translating its research assets into economic growth through the formation of new companies of licensing of research R&D to in-state firms.
He noted that in the 2006 Development Report Card for the States, Wisconsin ranks 15th nationally in academic research spending, 14th in patents issued and seventh in royalties and licenses. He also said the Wisconsin Alumni Research Foundation (WARF) is renowned for its excellence in technology transfer.
However, in the same report card, Wisconsin was 36th in business created via university R&D, 37th in tech industry employment and 47th overall in new company formation.
One solution to this problem, Dick said, is helping new companies get some of the billions of dollars of public funding that are handed out each year.
Dick said hamilton.gsp will work in cooperation with angel investors and other forms of private sector backing.
“We will be complementary to that funding,” he said.
“Most people who are starting companies are so busy they don’t have time to pursue grants, or they aren’t aware of it, or it’s too big and complicated a world for them to navigate on their own,” he said.
“We have the background and skill to do it for them,” he said. “The opportunities are real and they are out there.”
