— Investors agree now is a good time to launch a startup, despite some headwinds for entrepreneurs.
Speaking yesterday during the Wisconsin Entrepreneurs’ Conference in Milwaukee, Madison-based Venture Investors CEO and Managing Director David Arnstein noted startup funding has fallen recently back to pre-pandemic levels after spiking in 2021.
Even in the current competitive environment, he said skilled talent is widely available following large-scale tech industry layoffs in the past year or so. And while the number of startup “exits” is also down, he said that’s not a big concern for companies that are still years away from that point.
“It’s a great time to start a company, and a great time to find talent,” he said.
Caroline Casson, a partner with VITALIZE Venture Capital in Madison, predicted national investment totals this year will be “significantly down” from 2022, which in turn saw less activity than 2021.
“But when you kind of drill into the data, what’s interesting is that it’s really in the later stages where deals are pulling back … growth-stage investors are being really cautious and not really deploying a lot of capital right now,” she said. “But at the early stage, investors are actually still active.”
While she agreed with Arnstein on the opportunity posed by these conditions, she noted early-stage investors are becoming more particular about the companies they’re backing.
“Almost looking for like pre-pandemic levels of revenue and traction, whereas during the last year or two things got a little carried away,” she said.
She and other investors on the panel emphasized the importance of hitting revenue milestones to attract the attention of venture capital firms.
Mary Hannes, associate director of the Brookfield-based Golden Angels Investors network, said “the bar is a little higher now” for investor expectations. She urged startup leaders in attendance to be sure they’re fully prepared to meet with investors.
— The winner of this year’s Wisconsin Governor’s Business Plan Contest is SixLine Semiconductor, a Middleton-based startup developing components for advanced electronics.
The company’s technology hinges on the use of carbon nanotubes, which are microscopic materials with applications for wireless devices as well as computing. CEO, co-founder and co-inventor Katy Jinkins said the business is “overcoming a previously unattainable goal” of incorporating these materials into next-generation devices.
“As this explosive growth of devices has occurred, so too have the performance demands,” she said during the Wisconsin Entrepreneurs Conference, held this week in Milwaukee. “Current materials cannot meet these demands that are needed for this next generation of wirelessly connected devices.”
She pointed to speed, data transmission bandwidth and energy efficiency as examples.
Carbon nanotubes, which are made up of single-layered sheets of carbon atoms, are 50,000 times thinner than a human hair, Jinkins explained.
“In order to exploit the properties of nanotubes, you have to first translate random nanotube soot into this highly ordered, highly aligned carbon nanotube film … This transformation step has been a major challenge and has prevented the integration of nanotubes into commercialized electronics for over 30 years,” she said.
Using “patented, scaleable and industry-compatible processes,” SixLine Semiconductor has now bridged that gap, she said. The technology is based on years of research backed by $2 million of funding at UW-Madison, and is protected by multiple patents.
“We’ve demonstrated state-of-the-art computing and wireless device performance that match or exceed current materials that are used … Our technology brings a double value proposition of both higher performance and lower cost,” Jinkins said.
Tom Still, president of the Wisconsin Technology Council, says this application of carbon nanotubes is “something of a ‘Holy Grail’” in the tech field.
“SixLine Semiconductor is doing what it can to grasp the goal,” he said in a statement.
See more on the company: https://www.sixlinesemi.com/
See details on the other finalists in this year’s competition, which is hosted by the Tech Council: https://www.wisbusiness.com/2023/top-13-finalists-in-governors-business-plan-contest-make-final-presentations/
— This week’s episode of “WisBusiness: the Podcast” is with Jim Orheim, the new president and CEO of LeadingAge Wisconsin.
A little over a month into the job, Orheim discusses what brought him to this position with the long-term care network, the legacy left behind by former president John Sauer and some of his goals going forward.
“This is a really great opportunity to come do something locally, really work in my own backyard and leverage the skills that I have,” he said. “I love the mission, I’m not getting any younger myself. I’ve got aging parents. So being able to really give back to my state, that’s what drew me in.”
He also shares his perspective on the state’s long-term care industry, including workforce challenges, related policy efforts, the influence of the pandemic and more.
“One of the challenges that we have as an organization is a lot of the things that can be done for that workforce issue needs to be done at the federal level,” he said. “Immigration reform, things like that where we can bring in new workers that are desperately needed … But we can do things at the state level.”
That includes securing adequate funding for long-term care providers, he said, as well as educating decision makers about critical trends such as bed capacity problems.
Listen to the podcast here: https://www.wisbusiness.com/2023/wisbusiness-the-podcast-with-jim-orheim-leadingage-wisconsin/
See the full list of WisBusiness.com podcasts: https://www.wisbusiness.com/category/podcast/
— Gov. Tony Evers is touting investments in the state’s ag industry in a video message for June Dairy Month.
Evers notes Wisconsin is one of the top dairy producers in the state, making up more than a quarter of the country’s cheese production, adding “no one does dairy quite like us.”
“That’s why I’ve been proud to support our dairy industry over the past four years with increased investments in our Dairy Processor Grant Program, support for farmers during tough times through our Wisconsin Farm Support Program, and our work to increase the value of Wisconsin dairy exports by 2026,” he said.
A release from the guv’s office highlights provisions in Evers’ budget proposal that would expand funding for ag producers in the state.
Watch the video: https://www.youtube.com/watch?v=TJzz9_EJpbE
See the release: https://content.govdelivery.com/accounts/WIGOV/bulletins/35d8e1b
<br><b><i>Top headlines from the Health Care Report…</b></i>
— The UW Carbone Cancer Center is getting $11 million in federal money thanks to a research designation by the National Cancer Institute.
<i>For more of the most relevant news on COVID-19, reports on groundbreaking health research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics.com and WisBusiness.com.</i>
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#TOP STORIES#
# Lawmakers advance bills that aim to streamline professional licensing
# Madison’s big attempts at Housing First for the homeless are in trouble
# Master Lock workers joined by Mayor Johnson at plant closing protest
#TOPICS#
# AGRIBUSINESS
– Revitalizing dairy: National Milk Producers Federation proposes price updates to boost farm profitability
http://wisconsinagconnection.com/story-state.php?Id=547&yr=2023
# BANKING
– Loans grow, but deposits at Wisconsin banks down more than 1.5% in Q1
# ECONOMY
– Nearly 300K Wisconsin kids need child care. As federal aid expires, finding care could get even harder.
# EDUCATION
– Madison College’s GED program to graduate hundreds
# ENVIRONMENT
– Sauk County deer farm confirmed with chronic wasting disease
http://wisconsinagconnection.com/story-state.php?Id=548&yr=2023
– Dry spell causing concerns for SE Wisconsin farmers
http://wisconsinagconnection.com/story-state.php?Id=551&yr=2023
– Baldwin pitches new approach to removing wolves from endangered species list
# LABOR
– Starbucks workers on State Street vote overwhelmingly to join union
# LEGAL
– WMC threatens legal action over proposed policy changes that aim to protect surface water quality
# NONPROFIT
– Zilber Family Foundation donates $3.7 million in grants to local nonprofits
# REAL ESTATE
– Cardinal Stritch taking bids on its north shore property. Here’s the asking price and deadline for offers.
– Milwaukee Rep reaches 70% of fundraising goal for theater complex overhaul
# RETAIL
– Florsheim family exemplifies succession challenges at iconic Milwaukee-area firms
# SPORTS
– Ballpark official resigns after opposing Brewers spending request
– Eau Claire Marathon named the best in Wisconsin
– Lawmakers set to include $2M for NFL draft in state budget
# UTILITIES
– West Star Organics’ greenhouse greener than ever with solar project
# PRESS RELEASES
<i>See these and other press releases:
https://www.wisbusiness.com/press-releases/ </i>
Fox Cities Chamber: Miron Construction becomes gold-certified employee friendly workplace
