WED AM News: National headwinds threatening state’s advantage in biotech; Senate signs off on bill exempting some procedures from state definition of abortion

November 19, 2025

— Wisconsin’s competitive edge in biotech is being threatened by “national headwinds” for the industry, according to a startup specialist at WEDC.

Shayna Hetzel, vice president of entrepreneurship and innovation at the Wisconsin Economic Development Corp., spoke yesterday during a meeting of the agency’s board of directors. Representing the Wisconsin Investment Fund Committee, she discussed national and state trends in startup funding.

“Between uncertainty with research dollars and commercialization pathways, regulatory concerns, clinical trials and sort of those components that are outside of the state’s control, all of that is making national investors a little more hesitant to biotech,” she said.

For now, this environment isn’t influencing in-state funds’ portfolios, she said. But she added it could have an impact going forward.

“It’s just something for us to keep an eye on over the next few quarters, to see if these headwinds sort of dissipate, or if they start to get in the way of our high-growth startups,” she said.

Meanwhile, she pointed to national signs that the venture capital market is improving, though she cautioned these signals aren’t cause for a “full celebration” quite yet.

“The challenge with that recovery is that it’s concentrated and highly selective,” she said.

She noted AI-based startup companies are commanding the majority of all investment funding so far this year.

At the same time, emerging fund managers are now raising less money than established fund managers for the first time in a decade. That means existing funds are growing while early-stage investors are struggling with raising their first, second and third rounds, she explained.

Still, startup “exits” are generally on the rise, she said. More investors are getting a return on their capital, according to Hetzel, who called it an early indicator of a bounceback in the venture capital space. This activity isn’t as dramatic as the large checks being written in the COVID-19 pandemic, but it represents the first uptick for expected VC activity since then, she said.

Wisconsin is seeing similar patterns, but state-level activity is lagging the national picture by several months or even quarters, according to Hetzel’s presentation. She noted that’s partly due to the state’s startup ecosystem relying on “angel” investors, or early-stage backers that provide funding typically in return for equity in the business.

She noted it “takes a lot longer to get your money back when you’re investing on day one” rather than after the startup has already been around for several years.

Plus, Wisconsin tends to have smaller funds compared to elsewhere in the country, meaning rounds often include out-of-state investors.

— The state Senate has signed off along party lines on legislation that would exempt medical procedures such as removing a dead embryo or fetus or treating an ectopic pregnancy from the definition of abortion in Wisconsin.

GOP Sen. Romaine Quinn, one of the co-authors, yesterday argued the bill was about clearing up ambiguity in state law so that women seeking life-saving treatment can get it. But Dem Sen. Kelda Roys insisted it was pure politics.

Roys, D-Madison, said Republicans have been “getting killed in elections” because of their stance on abortion and are now seeking to change the definition to shield them from the fallout of stories detailing women being denied care for a miscarriage, for example, due to a state’s abortion restrictions.

She argued changing the definition was just an effort to not “call it abortion when a woman needs an abortion.”

“Abortion is a necessary medical procedure that sometimes pregnant people need to save their lives, to preserve their health to preserve their future fertility, and nothing in this bill is going to change that,” said Roys, who’s running for guv.

Quinn, R-Birchwood, said he makes no bones about his position opposing abortion and believes that life begins at conception. Still, the co-author of SB 553 said those who oppose abortion have never been about criminalizing a woman seeking care in a situation like a miscarriage or an ectopic pregnancy.

“Intent matters,” Quinn said. “There will be a time and a place to continue the abortion debate. But that is not today.”

SB 553 includes a requirement that the physician make reasonable efforts to save the parent and fetus from harm when performing an exempted procedure.

Dem Gov. Tony Evers has vowed to veto the bill, which next heads to the GOP-run Assembly.

The Senate also signed off on several Assembly bills, clearing the way for them to head to Gov. Tony Evers’ desk. They include:

*AB 211, which would expand an exemption for tobacco bars from the state’s indoor smoking ban.

The ban already exempts tobacco bars — those that generate at least 15% of their revenue from cigars and pipe tobacco — that were in existence when it took effect June 3, 2009. AB 211 would expand the exemption to tobacco bars that came into existence after that date, so long as only the smoking of cigars and pipes is allowed inside and that it is not a retail food establishment.

The bill cleared the Assembly 57-37 in September with some Dem support, and the Senate signed off 18-15 along party lines.

*AB 450, which would delay until April 1, 2026, the implementation of new commercial building codes. Republicans had previously held up their implementation through the Joint Committee for Review of Administrative Rules, which refused to allow the package proposed by the Department of Safety and Professional Services to proceed. Once the state Supreme Court nixed the committee’s ability to indefinitely suspend proposed rules, DSPS moved to implement the package, which the building industry fears would increase costs.

The new codes took effect Sept. 1, but DSPS gave builders a grace period until Oct. 1 before beginning to enforce the upgraded standards. It then announced the hard deadline for submitting building plans that meet the standards had been pushed back to Nov. 1.

It cleared the Assembly via voice vote, and the Senate approved it 20-12 with Dems Pfaff and Kristin Dassler-Alfheim, of Appleton, joining Republicans in support.

See more Senate action at the WisPolitics Quorum Call page.

— Bipartisan legislation being circulated in Wisconsin would require high schools to educate students about human organ and blood donation.

Reps. Benjamin Franklin, R-De Pere, Nate Gustafson, R-Omro, and Lisa Subeck, D-Madison, as well as Sens. Patrick Testin, R-Stevens Point, and Sarah Keyeski, D-Lodi, this week sent a co-sponsorship memo to other lawmakers seeking support for their bill.

They say the state is facing “an urgent and growing need” for more organ and blood donation, noting 2,000 people have removed themselves from the Wisconsin Donor Registry since July.

“Our state is experiencing the highest rate of individuals leaving the organ donor registry in history,” lawmakers wrote, noting only 3% of eligible Wisconsinites donate blood and citing a lack of education as the cause.

At the national level, one person is added to the transplant waiting list every eight minutes, and 13 people die every day while waiting on the list, according to the memo. Bill authors note one organ donor can save as many as eight lives and benefit up to 75 others through tissue donation.

Under the legislation, school boards would be required to include education on human organ and blood donation in the curriculum for at least one of the grades 9-12 starting in the 2026-27 school year, according to the Legislative Reference Bureau.

While current state law requires organ donation education in driver’s education courses, lawmakers say this isn’t enough, as only about 25% of 16-year-olds had a driver’s license in 2023.

“As a result, thousands of young people are missing vital, factual information that could help them make an informed and potentially life-saving decision,” authors wrote.

They say their bill isn’t meant to require participation in the organ donation program, but rather to provide “accurate, balanced information” on the process so students can make an informed choice. Authors say blood research center Versiti and UW Organ and Tissue Donation have created updated education materials on the topic with state-specific data.

“By supporting this bill, we can reverse declining donation rates, empower the next generation with knowledge, and give thousands of patients a better chance at life,” authors wrote.

The co-sponsorship deadline is Nov. 26 at 4 p.m.

See the bill text.

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com.

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— StartingBlock Madison will use $75,000 in new SBA funding to enhance its support for entrepreneurs in key sectors for the region, including health technology, agriculture, manufacturing and more.

That’s according to CEO Scott Mosley, who yesterday announced the entrepreneurship organization has been chosen by the U.S. Small Business Administration’s Growth Accelerator Fund Competition for the second time after an earlier award from 2023.

It’s one of 76 organizations selected for funding amid a “competitive national field,” Mosley said.

“As I reflect on this recognition, I can’t help but think about what it represents: federal acknowledgment that south central Wisconsin is building something special,” he wrote in the email. “We are thrilled that our federal partners understand and value the work that StartingBlock is doing in the Madison ecosystem.”

Along with providing a co-working space in downtown Madison geared towards entrepreneurs, StartingBlock also hosts community events including presentations from startup founders.

Mosley says the organization is seeking partners “who share our vision of establishing south central Wisconsin as a nationally recognized innovation hub” as it expands its programming and pursues other funding opportunities.

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