Description
Brief outline around technology investment manager, wedc, division of entrepreneurship and innovation.
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1
July 2012
Prepared by Chris Schiffner,
Technology Investment Manager, WEDC,
Division of Entrepreneurship and Innovation
Act 255:
Early Stage Business
Investment Program
2012 Annual Report
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2
Wisconsin’s Qualifed New Business Venture (QNBV) program – also known as our Angel
Investment Program, or Act 255 Program – has become a model of success. Since 2005,
the QNBV program has driven investment in early-stage businesses, creating jobs and
stimulating Wisconsin’s economy.
More than 216 companies have been certifed through the QNBV program, helping leverage
$637 million in investments. Among those companies still certifed as QNBV businesses,
reports show that the program has helped create 1,112 Wisconsin jobs. But we know this
number is actually much higher because successful companies eventually “graduate” from
the program and no longer report employment numbers to us. Some of those companies
have more than 100 employees and the jobs we’re talking about are good jobs with an average
salary of $76,500 per year.
The Wisconsin Economic Development Corporation’s (WEDC’s) Division of
Entrepreneurship and Innovation is building upon this program’s legacy of success,
pursuing our goal of increasing the number of entrepreneurs successfully starting
business in the state.
Wisconsin is a great place for business. We have the talented workforce, the strong education
system and the innovative entrepreneur programs necessary to lead the way in business
and job growth. By incenting investment in Wisconsin companies we will efectively attract
businesses to our state.
This report describes the QNBV program’s progress, including $44.7 million in qualifed
investments in 2011. Throughout this report angel investor representatives and qualifed new
businesses share their thoughts on the WEDC and Wisconsin’s entrepreneurial spirit, a spirit
we at the WEDC work every day to foster.
Sincerely,
Paul Jadin, CEO and Secretary,
Wisconsin Economic Development Corporation
Paul Jadin
CEO and Secretary of WEDC
helping wisconsin
start-ups succeed
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Stimulating business growth
The Qualifed New Business Venture program, commonly known as the Act 255 investor tax credits or Accelerate Wisconsin, was launched in
2005 as the frst program of its kind designed to drive equity investment to early-stage businesses with the potential for signifcant economic
impact and job growth. The early success of the program attracted national attention and has been a model for similar programs in a number
of other states, most notably Wisconsin’s neighboring states of Minnesota and Illinois.
In the six years since implementation, the program has certifed 216 businesses. The following charts summarize the program’s investments
during that period.
Type of
Industry
Number of
Investments
Qualifed
Investment
$000s
Average
Qualifed
Investment
Total
Participating
Businesses
Biotech 1,308 $65,902 $50,384 60
Health Tech 563 $31,028 $55,112 36
IT 1,088 $57,316 $52,680 70
Nanotech 23 $1,235 $53,696 4
Energy 206 $8,541 $41,461 10
Other* 548 $21,611 $39,436 36
Total 3,736 $185,633 $49,688 216
Investments by Industry
*Includes Advanced Manufacturing
1,308
563
1,088
23
206
548
1,308
654
1,093
23
462
208
Biotech Health tech
IT Nanotech
Energy Other
historical summary
Year
Angel
$000s
VC Fund
$000s
2005 $11,959 $501
2006 $9,673 $5,694
2007 $8,202 $10,401
2008 $12,374 $17,138
2009 $21,897 $12,902
2010 $19,919 $10,267
2011 $26,194 $18,487
Qualifed Investments $110,241 $75,392
Credit Amount $27,560 $18,848
Cumulative Results
$000s
$185,633
$46,408
Results by Year
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Creating jobs
Certifed businesses provide annual reports with information on jobs, average
wages, grants received and fnancing received for the annual period. In 2010 the
state invested approximately an $8,174 per job. For 2010 we leveraged 23:1 in total
debt and equity fnancing to investment tax credits. The per-job investment in 2011
was $10,045. For 2011 we leveraged 10:1 in total debt and equity refnancing to
investment tax credits.
Job Growth
“These are critical first
steps for early stage
innovations that then
lead to larger angel and
institutional investments
needed to grow companies,
create jobs, support the
local economy and drive
revenue for the State.”
Carmine J. Durham,
President and CEO,
ZurexPharma, Inc.
Job Growth, Participating Companies
job statistics
Year
Participating
Companies
Jobs
1
Avg.
Salary
Federal
Grants
Financing
2011 138 1,112 $76,500 $33.2M $118.7 M
2010 125 930 $83,000 $29.4M $175.3M
2009 106 697 $77,000 $8.1M $95.2M
2008 89 545 $79,000 $5.4M $96.6M
2007 76 395 NA NA $70.2M
2006 60 303 NA NA $44.3M
2005 40 262 NA NA $36.8M
(1) Note in 2011 WEDC changed the way Jobs are calculated. Prior to 2011 Jobs were total Full Time Positions
regardless of state of employment. The 2011 Numbers show FT and PT Jobs based in WI. Note that companies
that exit the program, including those that no longer require equity investment, no longer report job and salary
information to us. Therefore, the chart above refects conservative measures of the jobs impacted by QNBV
investments.
0
375
750
1125
1500
2005 2006 2007 2008 2009 2010 2011
Participating Companies Jobs
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“Why would we even consider investing out of state when Wisconsin
is willing to be our 25% partner on deals we feel are worthy?”
Thomas M. Shannon, Shamrock Partners, Angel Investor and Serial Entrepreneur
The amount of Angel and Early Stage Seed Investment Tax Credits available each year is
limited. Since the inception of the program in 2005, the annual limits have been increased
multiple times including in 2011 when they were increased to $20 million in Angel Tax
Credits and $20.5 million in Early Stage Seed Credits annually. There is also an additional
$250,000 in credits available to nanotechnology companies under both the Angel and Early
Stage Seed Tax Credit programs.
In 2007, WEDC was granted the ability to carry forward unused tax credits into the following tax
period. Additionally in 2009 WEDC was granted the ability to transfer the unused tax credits
for use under the JOBS tax credit program. WEDC transferred $3.1 million in unused tax credits
to the JOBS tax credit program in 2009 and $6.8 million in unused credits in 2010.
credits issued
2005
$000s
2006
$000s
2007
$000s
2008
$000s
2009
$000s
2010
$000s
2011
$000s
2012
$000s
Initial Credit
Allocation
$3,000 $3,000 $3,000 $5,500 $5,500 $6,500 $20,000 $20,000
Rollover, Previous
Year
- - - $950 $3,356 $3,064 $3,194 $16,646
Total Available $3,000 $3,000 $3,000 $6,450 $8,856 $9,565 $23,195 $36,646
Credits Verifed $2,990 $2,418 $2,050 $3,093 $5,474 $4,980 $6,548 -
Balance Available $10 $582 $950 $3,356 $3,382 $4,585 $16,646 $36,646
Allocated to JTC - - - - $317 $1,391 - -
Available for
Rollover
- - $950 $3,356 $3,065 $3,194 $16,646 $36,646
2005
$000s
2006
$000s
2007
$000s
2008
$000s
2009
$000s
2010
$000s
2011
$000s
2012
$000s
Initial Credit
Allocation
$3,500 $3,500 $3,500 $6,000 $6,000 $8,000 $20,500 $20,500
Rollover, Prev.
Year
- - - $900 $2,616 $2,616 $2,703 $18,581
Total Available $3,500 $3,500 $3,500 $6,900 $8,616 $10,616 $23,203 $39,081
Credits Verifed $126 $1,423 $2,600 $4,284 $3,226 $2,467 $4,622 -
Balance Available $3,374 $2,077 $900 $2,616 $5,390 $8,149 $18,581 $39,081
Allocated to the
JTC
- - - - $2,774 $5,446 - -
Available for
Rollover
- - $900 $2,616 $2,616 $2,703 $18,581 $39,081
Angel Tax Credit
“The Act 255 credits
make it much easier
to put a high
growth startup deal
together.”
John Torinus,
Fund Manager &
Angel Investor
Early Stage Seed Credit (Venture Fund Credit)
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Industry
Type
Number of
Investments
(Individual)
Qualifed
Investment
(Millions)
Average
Investment
Biotech 227 $17.6 $77,533
Health Tech 22 $2.9 $131,818
Information Technology 278 $16.7 $60,072
Nanotech 2 $0.1 $50,000
Energy 3 $0.1 $33,333
Other 245 $6.3 $25,714
Total 777 $43.7 $56,242
For a list of businesses that received tax credits in 2011, see Appendix B.
Wisconsin continued to see strong investment activity in 2011 in the industry
sectors of biotech and information technology. Total fnancing leveraged is
down from a high of $175 million in 2010. However, the 2010 numbers are
largely driven by two companies that closed large venture capital-backed equity
rounds in 2010. These two companies account for over $85 million in equity in
2010.
Investment by Industry
Industry Investment, 2011 vs. Annual Average (Millions)
2011 summary
0 5
10
15
20
$17.60
$2.90
$16.70
$0.10
$0.10
$6.30
$9.40
$4.40
$8.10
$0.20
$1.20
$3.10
Biotech
Health Tech
IT
Nanotech
Energy
Other
2011 Historical Average
“Entrepreneurship is
really important to all of
us. I think it’s the most
important economic engine
that there is in America.”
Tim Keane,
managing director,
Golden Angel Investors
qualified new
business venture
investments
50
Companies receiving qualifying
investments in 2011
$118,748,808
Total fnancing leveraged in 2011
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Administered by WEDC, the QNBV program provides tax credits to eligible investors who make cash equity investments in qualifed early-
stage businesses. If all eligibility requirements are met, investors receive a tax credit of up to 25 percent of the value of the investment made
in the company. The investments incented by this program provide the capital necessary for emerging growth companies to develop new
products and technologies, move products to market and provide high quality jobs in Wisconsin. A company eligible for certifcation must
meet the following criteria:
? It is headquartered in Wisconsin.
? At least 51% of the employees are based in this state.
? It has fewer than 100 employees.
? It has been in operation for not more than 10 consecutive years.
? It has the potential for increasing jobs in this state, or increasing capital investment in this state.
? It is engaged in, or has committed to engage in, innovation in this state.
? It is not primarily engaged in real estate development; insurance; banking; lending; lobbying; political consulting; professional services
provided by attorneys, accountants, business consultants, physicians or health care consultants; wholesale or retail trade; leisure; hospitality;
transportation; or construction, except construction of power production plants that derive energy from a renewable resource.
? At the time it is frst certifed, it has not received aggregate private equity investment in cash of more than $10 million.
For a list of certifed businesses, see Appendix A.
WEDC provides the same tax benefts to certifed venture funds investing in QNBV companies. Prior to receiving the tax credit, venture funds
are required to be certifed by WEDC. WEDC considers the following when certifying venture funds:
? The applicant’s experience in the following:
• Managing venture capital funds
• Investing in high growth, early stage businesses
? The past performance of the following:
• Investment funds managed by the applicant
• Businesses assisted by the applicant
? The portion of the investment fund’s capital that the fund manager expects to invest in qualifed new business ventures
? Geographic distribution
? Focus on targeted industries or target group members
? Ability to access follow?on funding
? Services provided
? Commitment to Wisconsin
? Administrative and management fees
On April 5, 2012, there were several changes made to the program. Those changes are as follows:
? Certifcation criteria requiring that the certifed company be less than 10 years old, have not received private equity investment of more than
$10 million, and that the company has fewer than 100 employees applies only at the time of initial certifcation and not during subsequent
recertifcation periods.
? Allows for WEDC to impose a fnancial penalty on any certifed business that applies for investor tax credits and relocates out of state within
3 years. A business is considered relocated if more than 51% of its employees, payroll, or headquarters activities are located outside of
Wisconsin. The penalty is calculated as follows:
program details
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8
? A business must be certifed as a QNBV by WEDC prior to the initial investment in order to be eligible for investment tax credits.
? The fund must be certifed as a Qualifed Venture Fund (QVF) by WEDC prior to the initial investment in order to be eligible for investment
tax credits.
? Angel investors are required to be accredited investors and must submit documentation to WEDC following the investment.
? The investment is considered complete upon deposit of the investment into the Qualifed Businesses bank account.
? Investment credits are issued frst come, frst served and based on the date WEDC receives the completed documentation of the investment
from the QNBV, not based on the date the investment is made by the investor.
? A tax credit request form must be provided.
? Investment documentation must be provided.
? If relocation occurs less than 12 months following the investment the penalty amount is 100% of the credit claimed.
? If relocation occurs more than 12 and less than 24 months following the investment the penalty amount is 80% of the credit claimed.
? If relocation occurs more than 34 months and less than 36 months following the investment the penalty is 60% of the credit claimed.
? There is a requirement that investors that receive investment tax credits keep the qualifying investment for a minimum of 3 years or repay
the tax credit. The change inserts two exemptions into the language requiring the investment to be kept for a 3 year period. The exemptions
include if the investment becomes worthless as determined by WEDC or if there is a bona fde liquidity event as determined by WEDC within
that time period.
Wisconsin’s Act 255 Early Stage Business Investment Program – established in 2005 by the Wisconsin State Legislature and
administered by the Wisconsin Economic Development Corporation (WEDC) – has been recognized as a leading national
program. The Program supports a critical need to drive new business formation in Wisconsin by incenting investments in, and
development of, high-potential opportunities in the state.
While this program has had a dramatic efect in catalyzing additional investments, more pre-VC-stage risk capital is needed to
drive business start-up performance in Wisconsin achieve parity with the region and nation and grow new businesses and jobs
in our state. WEDC will continue to pursue strategies to increase the number of entrepreneurs in the state and access to startup
and early-stage capital. WEDC will also evaluate modifcations to the program and the development of additional initiatives that
provide direct investment in startup and early-stage companies.
If you have any questions or comments regarding this report, please contact Chris Schifner, Technology Investment Manager
for the Division of Entrepreneurship and Innovation, at 608/210-6826, [email protected] or Lisa Johnson, VP of
Entrepreneurship and Innovation, at 608/210-6828, [email protected].
certification
outlook
“It’s a simple formula, really. And that’s the beauty of Act 255 –
it directs equity investments to a critical sector of Wisconsin’s
economy, one that will play a large role in creating future jobs:
high growth seed and early stage companies.”
Lisa Johnson, Vice President of Entrepreneurship and Innovation, WEDC
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appendix a
Wisconsin Angel Tax Credit, List of Qualifed Businesses
The following businesses have been certifed as Qualifed Businesses under Wisconsin Statutes § 238.15. This certifcation solely
means that WEDC has found that each business meets the qualifcations specifed in Wisconsin Statutes § 238.15 and that each
business is therefore eligible to participate in WEDC’s Early Stage Business Investment Program.
Company Name Contact Location Telephone
Certifcation
Date
AhR Pharmaceuticals, Inc. Jiasheng Song Madison 608/265-9894 x3133 10/16/07
Alpha Universe, LLC Alexey G. Zdanovsky Madison 608/661-0861 9/21/06
AquaMost, Inc. Todd Asmuth Madison 608/204-8860 12/14/09
Aurizon Ultrasonics William Raaths Kimberly 920/731-5777 7/9/09
Aurora Spectral Technologies LLC Thomas Mozer Milwaukee 608/712-2172 10/4/10
Aver Informatics Kurt Brenkus De Pere 920-309-6020 10/6/11
BellBrook Labs, LLC Robert G. Lowery Madison 608/443-2401 2/18/05
Bill-Ray Home Mobility, LLC Joseph Vosters Appleton 920/915-8433 5/12/10
BioIonix, Inc. James Tretheway Mc Farland 608/255-8824 5/10/05
Blue Planet Strategies, LLC Patrick James Madison 608-334-4824 11/15/10
Caseus Energy, LLC Alexander Reyter Stratford (310) 235-1492 2/9/12
Cell Line Genetics, Inc. Roberto Herrera Madison 608/441-8161 11/17/08
Centrose LLC James Prudent Madison 608/209-8933 5/16/07
ConjuGon, Inc. Steve Watt Madison 608/441-2890 3/11/05
Cytometix Lane Brostrom Brookfeld 414/745-8000 12/14/09
Cytophil, Inc. Greg Johnson East Troy 414/961-7372 8/11/11
Deka Systems, LLC. Rob Gaddis Sun Prairie 608-443-7372 2/8/12
DeltaHawk Engines, Inc. Dennis Webb Racine 262-634-9660 9/13/06
Door 6, Inc. Jeremy Shafton Madison 262/293-6676 6/22/11
Dossette, LLC Kimberly Trygar Pleasant Prairie (262) 705-4494 10/6/11
Dynamis Software Corporation Mark Priestaf Franklin 877/511-7944 10/3/11
Echometrix LLC Barbara A. Israel Madison 608/217-2685 8/20/07
Elaion Biosciences Bill Checovich Madison 608-334-1778 3/14/12
Embedtek Kent Tabor Hartland 262/367-3900 5/12/10
Engineered Propulsion Systems, Inc. Michael J. Fuchs New Richmond 715-803-4290 5/24/10
Enhancement Medical, LLC Robert Hofschultz Wauwatosa 414-349-3976 1/12/12
Esker Technologies, LLC Bradley M. Rake Milwaukee 414/578-9566 5/5/05
Eso-Technologies, Inc. Bonnie Reinke Middleton 262-966-3398 10/13/08
Evrisko Systems, LLC John P. Greene Eau Claire 715/874-4684 5/18/09
Extend Manufacturing Chris D. Osswald Schofeld 715/359-3002 8/26/09
Flex Biomedical, Inc. Sal Braico Madison 608/213/8246 2/2/09
FluGen Inc. Paul Radspinner Madison 608/658-6095 11/12/07
Frozen Codebase LLC Ben Geisler Green Bay 414-350-9401 11/9/11
Golf Pipeline Brian Wroblewski Menomonee 414-899-4100 4/1/12
GWC Technologies, Inc. Stephen C. Weibel Madison 608/441-2722 5/5/05
HarQen, Inc. Kelly Fitzsimmons Milwaukee 414-755-1962 7/22/09
Helios USA, LLC Steven Ostrenga Milwaukee 907/292-7855 12/22/09
HMA Fire LLC Thomas Crabb Middleton 608/827-5000 1/25/11
Horizon Systems & Services, Inc. Bob Agazzi Sheboygan 920/803-8000 1/6/06
HSM, LLC Hensley Foster Milwaukee 414/236-4183 5/23/11
Idle Free Systems, Inc. Robert Hopton Watertown 920/206-9333 10/20/08
Illumatek, LLC John Miller Wales 414-313-4569 -
Imagination Trends Lisa Perzborn-Whiting De Forest 608/850-6277 8/16/10
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appendix a, continued
Company Name Contact Location Telephone
Certifcation
Date
Imaging Biometrics Michael Schmainda Elm Grove 262-439-8252 4/11/12
InControl Medical, LLC Buzz Peddicord Brookfeld (262) 373-0422 6/18/12
Innosoft Thomas Culver Cleveland (920) 207-4977 11/9/11
Invenra Inc Roland Green Madison (608) 358-4273 1/25/12
Invivo Sciences, LLC Ayla Annac Madison (608) 713-0149 11/1/05
ioGenetics, LLC Jane Homan Madison 608/310-9540 3/22/05
Kenergy, Inc. Stephen Denker Thiensville (414) 405-5800 4/18/06
Keystone Insights, LLC David Noshay Menomonee
Falls
262-437-7389 4/25/12
Liveyearbook, Inc. Todd DeNoyer Neenah 920/277-4049 6/1/10
Lucigen Corporation David A. Mead Middleton 608/831-9011 1/19/05
Lumen Healthcare, Inc. Brian Curry Pewaukee 414-232-1325 12/14/09
Marvel Medtech, LLC Raymond D. Harter Madison 608/310-9560 2/7/05
Medical Cyberworlds, Inc. Frederick William Kron Verona 608/829-0049 8/20/07
Medical Engineering Innovations, Inc. James Will Madison 608/310-9556 1/12/11
MedTrak Steve Hushek Milwaukee (414) 731-7150 11/4/11
Microscopy Innovations, LLC Mark Nelson Marshfeld 715/387-8897 11/22/10
Montage Talent, Inc. Michael J. Bonk Delafeld 262/264-0662 4/19/10
Morgan Aircraft, LLC Mark O'Halloran Oostburg 312-865-1000 7/2/07
Murfe, Inc. Matthew Younkle Madison 608/234-5015 8/2/10
NanoMedex Pharmaceuticals, Inc. David L. Cooper Middleton (608) 826-7367 7/22/08
NCD Technologies Bob Shimmel Madison (608) 622-7996 -
NeuroGenomeX, Inc. Jacqueline Doeler Madison 608/335-7329 8/31/09
NeuWave Medical, Inc. Laura King Madison 608/213-4553 3/21/06
New River Technologies, LLC Ted Kanavas Grafton 262/391-6834 1/19/11
Northstar Medical Radioisotopes, LLC George P. Messina Madison 608-316-6980 4/1/12
NovaScan LLC Bill Gregory Milwaukee 262/893-7165 6/28/05
NovaShield, Inc. Praveen Sinha Madison 608/833-2610 2/17/06
Odyne Systems, LLC Joseph Dalum Waukesha 262-544-8405 11/1/10
Okanjo Partners, Inc. Henk Vlietstra Milwaukee (414) 810-1760 9/9/11
oneEvent Technologies Inc. Shawn Guse Mount Horeb (608) 320-0675 12/22/11
Pabst Engineering & Manufacturing, Inc. Kirby Pabst Onalaska 608/781-0861 9/2/08
PDM Solar, Inc. David Baker Wausau 715-574-4920 7/24/06
PerBlue, Inc. Justin Beck Waunakee 608/712-9449 7/28/10
Perscitus Biosciences, LLC James Thomas Madison 608/213-9646 5/28/08
Phoenix Nuclear Labs Greg Piefer Middleton 608/826-4267 6/3/08
Phyllotech, LLC Ryan W. Shepherd Madison 510/209-1367 4/6/10
Pilot Training Solutions LLC Chris Johnson Middleton (563) 249-4315 11/23/11
Pinpoint Softwares, Inc. Andrew Hoeft Onalaska 608-797-4435 2/2/12
PlantPharm Biomed, Ltd. Bob Britt Delavan 262/728-8815 2/20/08
Platypus Technologies, LLC Barbara A. Israel Madison 608/237-1270 1/19/05
ProCertus BioPharm, Inc. Todd Argall Madison 608/469-5371 1/16/07
Procubed, LLC Jim Maerzke Kenosha 262/654-5602 11/8/10
Promentis Pharmaceuticals, Inc. Daniel G. Lawton Milwaukee 262/302-9039 11/3/08
Quincy Bioscience Holding Company, Inc. Michael Beaman Madison 877/677-8652 3/30/05
Quintessence Biosciences, Inc. Ralph Kauten Madison 608/441-2951 1/28/05
Quter Todd Wray Neenah (920) 886-8275 -
Rapid Diagnostek, Inc. Harry Norris Hudson 651/604-4204 10/29/07
Reciprocal Labs Corporation David Van Sickle Madison (608) 251-0470 6/9/11
Renewegy, LLC Jef Ehlers Oshkosh 877-424-4632X201 5/23/11
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appendix a, continued
Company Name Contact Location Telephone
Certifcation
Date
Renwig Custom, LLC Brennon Garthwait Whitewater 920-675-6758 4/19/12
Riva Solutions, LLC Mohammed Hashim-Waris Madison 608/222-3344 3/8/10
Semba Biosciences, Inc. Robert Mierendorf Madison 608/441-8009 6/30/05
Shamrock Energy Corporation Charles Gibson Oshkosh 920/851-2312 11/22/10
Shindigs Brendon Thomas Milwaukee 414-469-7437 2/22/12
SHINE Medical Technologies, Inc. Greg Piefer Middleton (608) 831-0814 12/13/10
Shoutlet, Inc. Jason Weaver Madison 608/833-0088 10/27/10
Silatronix Inc Mark Zager Madison 414/840-9666 3/12/08
Sirkpath, Inc. Mark D. Westfall Neenah 920/428-0929 3/1/05
Smoke-Break, LLC Brett Roth Milwaukee 800/372-8332 4/5/11
SnowShoeFood, Inc. Claus Moberg Madison (608) 807-7569 12/28/11
SoLoMo Identity, LLC Liz Eversoll Madison (608) 220-1900 4/11/12
Somna Therapeutics Nick Maris Mequon 262-388-1186 4/16/12
Sonoplot, Inc. Glen Donald Middleton 608/824-9311 1/23/08
SpeechTails, Inc Amy Reno Elm Grove (414) 659-5482 6/8/12
Stablebody Technologies, LLC Joseph Firca Madison 608/698-8445 7/22/10
Stealth Therapeutics, Inc. Brad Glenn Madison 920/429-9006 11/27/07
Stemina Biomarker Discovery, Inc. Elizabeth L. R. Donley Madison 608-831-3592 4/16/07
StrandVision, LLC Mike Strand Menomonie 715/833-9501 11/22/05
Stratatech Corporation Lynn Allen-Hofmann,
Ph.D,
Madison 608/441-2750 3/26/07
StudyBlue, Inc. Rebecca Splitt Madison (608) 441-1149 4/15/09
Super D Ted Schwarzrock Eau Claire 612-710-1489 3/6/12
Surgical Site Solutions, Inc. James Kregel Sheboygan 920/494-4786 7/6/10
Swallow Solutions, LLC JoAnne Robbins Madison 608/231-3868 8/18/08
Tascet, Inc. Larry Aubol Madison 608-442-8888 9/20/05
TermSync, Inc. Mark Wilson Madison 608/316-8380 8/2/10
TrafcCast International, Inc. Jing (Connie) Li Madison 608/268-3911 6/20/06
Transthermal LLC Troy Livingston Conover 708-370-2700 -
U.S. Pride Products, LLC Charles VanDusartz Hammond 715-246-9237 8/9/10
U.S. Trail Maps, Inc. Dean Forss Wausau 715/ 845-777 x3 6/28/05
Vatrix Medical, Inc. Matthew Ogle Madison 952/224-5797 11/23/09
Vibetech, Inc. Jef Leismer Sheboygan 920/287-1930 4/1/10
Virent, Inc. Lee Edwards Madison 608/663-0228 1/7/05
Wellsys, LLC Richard Brown Madison 608-663-7100 11/8/10
WholeTrees, LLC Amelia Baxter Stoddard (608) 452-3894 6/18/12
Xela Innovation, LLC Todd Muderlak Glendale 414/272-3983 12/14/09
Xolve, Inc. John Biondi Middleton (608) 203-8362 8/16/10
Zurex Pharma, Inc. Carmine J. Durham Middleton (608) 203-9090 7/12/10
Zurex PharmAgra, LLC Carmine J Durham Middleton (608) 203-9090 3/8/11
page
12
Wisconsin Angel Tax Credit, List of Credits Issued
The following businesses received investments in 2011 that qualifed under WEDC’s Early Stage Business Investment Program
under Wisconsin Statutes § 238.15. Issuance of these certifcates solely means that WEDC has found that the investment meets
the qualifcations specifed in statute and that the qualifed investor or qualifed fund’s investor is being awarded tax credits under
WEDC’s Investment Tax Credit Program.
appendix b
Certifed Company Tax Credit Angel Investment Amount (1) ESS Investment Amount (2)
Alice.com $721,521 $2,886,083
AquaMOST, LLC $686,693 $2,746,773
Aurizon Ultrasonics $12,500 $50,000
Aurora Spectral $158,125 $632,500
Aver Informatics, Inc. $218,750 $875,000
Brazen Careerist, Inc. $111,250 $445,000
Cellular Dynamics International $1,000,000 $1,086,668 $2,913,332
Cytophil, Inc. $87,750 $351,000
Dimensional Technology $25,964 $103,856
Door 6, Inc. $15,625 $62,500
Engineered Propulsion $135,673 $542,690
Esker Technologies, LLC $87,500 $350,000
Eso-Technologies, Inc. $41,448 $165,792
FluGen Inc. $714,072 $465,100 $2,391,189
Frozen Codebase LLC $95,000 $40,000 $340,000
HarQen, Inc. $309,800 $717,915 $521,284
HSM, LLC $50,200 $200,800
Imagination Trends $106,250 $425,000
Liveyearbook, Inc. $346,250 $1,385,000
Montage Talent, Inc. $741,128 $1,164,510 $1,800,000
Morgan Aircraft, LLC $29,167 $116,667
Nanomedex Pharmaceuticals $1,004 $4,016
NeoClone Biotechnology $12,500 $50,000
Networked Insights $294,615 $543,461 $635,000
NeuWave Medical, Inc. $878,763 $2,270,522 $1,244,528
New River Technologies $39,460 $157,840
NovaScan LLC $75,000 $300,000
NovaShield, Inc. $102,500 $410,000
Okanjo Partners, Inc. $375,000 $1,500,000
PDM Solar, Inc. $16,725 $66,900
ProCertus BioPharm, $192,500 $70,000 $700,000
Quincy Bioscience $59,750 $239,000
page
13
(1) Investment amounts do not refect the total amount invested in the company, only the amount received in tax credits.
(2) ESS Tax Credits – Early Stage Seed Investment Tax Credit commonly called the Venture Fund Credits
Certifed Company Tax Credit Angel Investment Amount (1) ESS Investment Amount (2)
Quintessence $275,584 $1,102,334
Quter, Inc. $2,500 $10,000
Rapid Diagnostek, Inc. $25,000 $100,000
Ratio Inc. $12,500 $50,000
Reciprocal Labs Corporation $167,500 $670,000
SHINE Medical $1,320,919 $1,383,676 $3,900,000
Shoutlet, Inc. $125,000 $500,000
Silatronix, Inc. $539,503 $1,157,997 $1,000,016
Stealth Therapeutics $90,625 $362,500
Stemina Biomarker $62,500 $250,000
Stratatech Corporation $31,250 $125,000
Surgical Site Solutions, $14,000 $56,000
Tascet, Inc. $208,000 $832,000
TermSync, Inc. $51,250 $205,000
TrafcCast International, $297,866 $150,000 $1,041,465
Xolve, Inc. $11,250 $45,000
Zurex Pharma, Inc. $67,500 $270,000
Zurex PharmAgra, LLC $131,250 $50,000 $475,000
appendix b continued
wedc.org | 608 210 6701 | 201 W. Washington Ave, Madison, WI 53703
Governor Scott Walker chairs the
WEDC Board of Directors composed
of state legislators, departmental sec-
retaries and private business owners.
The 13-member Board of Directors
provides WEDC with strategic leader-
ship and operational oversight repre-
senting statewide public and private
economic development interests.
Ofcers
Chair
Scott Walker
Governor
State of Wisconsin
Vice-Chair
Dan Ariens
President and CEO
Ariens Company
Treasurer
Scott Klug
Managing Director of Public Afairs
Foley and Lardner
Secretary
Lisa Mauer
President
Tool Service Corporation
Members
Rep. Peter Barca
64th Assembly District
Raymond Dreger
CEO/President
Seeds and Stuf Market Inc.
Corey Hoze
Senior Vice President
Associated Banc-Corp.
Sen. Julie Lassa
24th Senate District
Paul Radspinner
President and Chief Executive Ofcer
FluGen, Inc.
C. Thomas Sylke
Owner and Principal
Sylke Law Ofces, LLC
Don Weber
Founder and CEO
Logistics Health Inc
Rep. Mary Williams
87th Assembly District
Sen. Rich Zipperer
33rd Senate District
Learn more about the WEDC’s Divison of
Entrepreneurship and Innovation at wedc.org
doc_501966398.pdf
Brief outline around technology investment manager, wedc, division of entrepreneurship and innovation.
page
1
July 2012
Prepared by Chris Schiffner,
Technology Investment Manager, WEDC,
Division of Entrepreneurship and Innovation
Act 255:
Early Stage Business
Investment Program
2012 Annual Report
page
2
Wisconsin’s Qualifed New Business Venture (QNBV) program – also known as our Angel
Investment Program, or Act 255 Program – has become a model of success. Since 2005,
the QNBV program has driven investment in early-stage businesses, creating jobs and
stimulating Wisconsin’s economy.
More than 216 companies have been certifed through the QNBV program, helping leverage
$637 million in investments. Among those companies still certifed as QNBV businesses,
reports show that the program has helped create 1,112 Wisconsin jobs. But we know this
number is actually much higher because successful companies eventually “graduate” from
the program and no longer report employment numbers to us. Some of those companies
have more than 100 employees and the jobs we’re talking about are good jobs with an average
salary of $76,500 per year.
The Wisconsin Economic Development Corporation’s (WEDC’s) Division of
Entrepreneurship and Innovation is building upon this program’s legacy of success,
pursuing our goal of increasing the number of entrepreneurs successfully starting
business in the state.
Wisconsin is a great place for business. We have the talented workforce, the strong education
system and the innovative entrepreneur programs necessary to lead the way in business
and job growth. By incenting investment in Wisconsin companies we will efectively attract
businesses to our state.
This report describes the QNBV program’s progress, including $44.7 million in qualifed
investments in 2011. Throughout this report angel investor representatives and qualifed new
businesses share their thoughts on the WEDC and Wisconsin’s entrepreneurial spirit, a spirit
we at the WEDC work every day to foster.
Sincerely,
Paul Jadin, CEO and Secretary,
Wisconsin Economic Development Corporation
Paul Jadin
CEO and Secretary of WEDC
helping wisconsin
start-ups succeed
page
3
Stimulating business growth
The Qualifed New Business Venture program, commonly known as the Act 255 investor tax credits or Accelerate Wisconsin, was launched in
2005 as the frst program of its kind designed to drive equity investment to early-stage businesses with the potential for signifcant economic
impact and job growth. The early success of the program attracted national attention and has been a model for similar programs in a number
of other states, most notably Wisconsin’s neighboring states of Minnesota and Illinois.
In the six years since implementation, the program has certifed 216 businesses. The following charts summarize the program’s investments
during that period.
Type of
Industry
Number of
Investments
Qualifed
Investment
$000s
Average
Qualifed
Investment
Total
Participating
Businesses
Biotech 1,308 $65,902 $50,384 60
Health Tech 563 $31,028 $55,112 36
IT 1,088 $57,316 $52,680 70
Nanotech 23 $1,235 $53,696 4
Energy 206 $8,541 $41,461 10
Other* 548 $21,611 $39,436 36
Total 3,736 $185,633 $49,688 216
Investments by Industry
*Includes Advanced Manufacturing
1,308
563
1,088
23
206
548
1,308
654
1,093
23
462
208
Biotech Health tech
IT Nanotech
Energy Other
historical summary
Year
Angel
$000s
VC Fund
$000s
2005 $11,959 $501
2006 $9,673 $5,694
2007 $8,202 $10,401
2008 $12,374 $17,138
2009 $21,897 $12,902
2010 $19,919 $10,267
2011 $26,194 $18,487
Qualifed Investments $110,241 $75,392
Credit Amount $27,560 $18,848
Cumulative Results
$000s
$185,633
$46,408
Results by Year
page
4
Creating jobs
Certifed businesses provide annual reports with information on jobs, average
wages, grants received and fnancing received for the annual period. In 2010 the
state invested approximately an $8,174 per job. For 2010 we leveraged 23:1 in total
debt and equity fnancing to investment tax credits. The per-job investment in 2011
was $10,045. For 2011 we leveraged 10:1 in total debt and equity refnancing to
investment tax credits.
Job Growth
“These are critical first
steps for early stage
innovations that then
lead to larger angel and
institutional investments
needed to grow companies,
create jobs, support the
local economy and drive
revenue for the State.”
Carmine J. Durham,
President and CEO,
ZurexPharma, Inc.
Job Growth, Participating Companies
job statistics
Year
Participating
Companies
Jobs
1
Avg.
Salary
Federal
Grants
Financing
2011 138 1,112 $76,500 $33.2M $118.7 M
2010 125 930 $83,000 $29.4M $175.3M
2009 106 697 $77,000 $8.1M $95.2M
2008 89 545 $79,000 $5.4M $96.6M
2007 76 395 NA NA $70.2M
2006 60 303 NA NA $44.3M
2005 40 262 NA NA $36.8M
(1) Note in 2011 WEDC changed the way Jobs are calculated. Prior to 2011 Jobs were total Full Time Positions
regardless of state of employment. The 2011 Numbers show FT and PT Jobs based in WI. Note that companies
that exit the program, including those that no longer require equity investment, no longer report job and salary
information to us. Therefore, the chart above refects conservative measures of the jobs impacted by QNBV
investments.
0
375
750
1125
1500
2005 2006 2007 2008 2009 2010 2011
Participating Companies Jobs
page
5
“Why would we even consider investing out of state when Wisconsin
is willing to be our 25% partner on deals we feel are worthy?”
Thomas M. Shannon, Shamrock Partners, Angel Investor and Serial Entrepreneur
The amount of Angel and Early Stage Seed Investment Tax Credits available each year is
limited. Since the inception of the program in 2005, the annual limits have been increased
multiple times including in 2011 when they were increased to $20 million in Angel Tax
Credits and $20.5 million in Early Stage Seed Credits annually. There is also an additional
$250,000 in credits available to nanotechnology companies under both the Angel and Early
Stage Seed Tax Credit programs.
In 2007, WEDC was granted the ability to carry forward unused tax credits into the following tax
period. Additionally in 2009 WEDC was granted the ability to transfer the unused tax credits
for use under the JOBS tax credit program. WEDC transferred $3.1 million in unused tax credits
to the JOBS tax credit program in 2009 and $6.8 million in unused credits in 2010.
credits issued
2005
$000s
2006
$000s
2007
$000s
2008
$000s
2009
$000s
2010
$000s
2011
$000s
2012
$000s
Initial Credit
Allocation
$3,000 $3,000 $3,000 $5,500 $5,500 $6,500 $20,000 $20,000
Rollover, Previous
Year
- - - $950 $3,356 $3,064 $3,194 $16,646
Total Available $3,000 $3,000 $3,000 $6,450 $8,856 $9,565 $23,195 $36,646
Credits Verifed $2,990 $2,418 $2,050 $3,093 $5,474 $4,980 $6,548 -
Balance Available $10 $582 $950 $3,356 $3,382 $4,585 $16,646 $36,646
Allocated to JTC - - - - $317 $1,391 - -
Available for
Rollover
- - $950 $3,356 $3,065 $3,194 $16,646 $36,646
2005
$000s
2006
$000s
2007
$000s
2008
$000s
2009
$000s
2010
$000s
2011
$000s
2012
$000s
Initial Credit
Allocation
$3,500 $3,500 $3,500 $6,000 $6,000 $8,000 $20,500 $20,500
Rollover, Prev.
Year
- - - $900 $2,616 $2,616 $2,703 $18,581
Total Available $3,500 $3,500 $3,500 $6,900 $8,616 $10,616 $23,203 $39,081
Credits Verifed $126 $1,423 $2,600 $4,284 $3,226 $2,467 $4,622 -
Balance Available $3,374 $2,077 $900 $2,616 $5,390 $8,149 $18,581 $39,081
Allocated to the
JTC
- - - - $2,774 $5,446 - -
Available for
Rollover
- - $900 $2,616 $2,616 $2,703 $18,581 $39,081
Angel Tax Credit
“The Act 255 credits
make it much easier
to put a high
growth startup deal
together.”
John Torinus,
Fund Manager &
Angel Investor
Early Stage Seed Credit (Venture Fund Credit)
page
6
Industry
Type
Number of
Investments
(Individual)
Qualifed
Investment
(Millions)
Average
Investment
Biotech 227 $17.6 $77,533
Health Tech 22 $2.9 $131,818
Information Technology 278 $16.7 $60,072
Nanotech 2 $0.1 $50,000
Energy 3 $0.1 $33,333
Other 245 $6.3 $25,714
Total 777 $43.7 $56,242
For a list of businesses that received tax credits in 2011, see Appendix B.
Wisconsin continued to see strong investment activity in 2011 in the industry
sectors of biotech and information technology. Total fnancing leveraged is
down from a high of $175 million in 2010. However, the 2010 numbers are
largely driven by two companies that closed large venture capital-backed equity
rounds in 2010. These two companies account for over $85 million in equity in
2010.
Investment by Industry
Industry Investment, 2011 vs. Annual Average (Millions)
2011 summary
0 5
10
15
20
$17.60
$2.90
$16.70
$0.10
$0.10
$6.30
$9.40
$4.40
$8.10
$0.20
$1.20
$3.10
Biotech
Health Tech
IT
Nanotech
Energy
Other
2011 Historical Average
“Entrepreneurship is
really important to all of
us. I think it’s the most
important economic engine
that there is in America.”
Tim Keane,
managing director,
Golden Angel Investors
qualified new
business venture
investments
50
Companies receiving qualifying
investments in 2011
$118,748,808
Total fnancing leveraged in 2011
page
7
Administered by WEDC, the QNBV program provides tax credits to eligible investors who make cash equity investments in qualifed early-
stage businesses. If all eligibility requirements are met, investors receive a tax credit of up to 25 percent of the value of the investment made
in the company. The investments incented by this program provide the capital necessary for emerging growth companies to develop new
products and technologies, move products to market and provide high quality jobs in Wisconsin. A company eligible for certifcation must
meet the following criteria:
? It is headquartered in Wisconsin.
? At least 51% of the employees are based in this state.
? It has fewer than 100 employees.
? It has been in operation for not more than 10 consecutive years.
? It has the potential for increasing jobs in this state, or increasing capital investment in this state.
? It is engaged in, or has committed to engage in, innovation in this state.
? It is not primarily engaged in real estate development; insurance; banking; lending; lobbying; political consulting; professional services
provided by attorneys, accountants, business consultants, physicians or health care consultants; wholesale or retail trade; leisure; hospitality;
transportation; or construction, except construction of power production plants that derive energy from a renewable resource.
? At the time it is frst certifed, it has not received aggregate private equity investment in cash of more than $10 million.
For a list of certifed businesses, see Appendix A.
WEDC provides the same tax benefts to certifed venture funds investing in QNBV companies. Prior to receiving the tax credit, venture funds
are required to be certifed by WEDC. WEDC considers the following when certifying venture funds:
? The applicant’s experience in the following:
• Managing venture capital funds
• Investing in high growth, early stage businesses
? The past performance of the following:
• Investment funds managed by the applicant
• Businesses assisted by the applicant
? The portion of the investment fund’s capital that the fund manager expects to invest in qualifed new business ventures
? Geographic distribution
? Focus on targeted industries or target group members
? Ability to access follow?on funding
? Services provided
? Commitment to Wisconsin
? Administrative and management fees
On April 5, 2012, there were several changes made to the program. Those changes are as follows:
? Certifcation criteria requiring that the certifed company be less than 10 years old, have not received private equity investment of more than
$10 million, and that the company has fewer than 100 employees applies only at the time of initial certifcation and not during subsequent
recertifcation periods.
? Allows for WEDC to impose a fnancial penalty on any certifed business that applies for investor tax credits and relocates out of state within
3 years. A business is considered relocated if more than 51% of its employees, payroll, or headquarters activities are located outside of
Wisconsin. The penalty is calculated as follows:
program details
page
8
? A business must be certifed as a QNBV by WEDC prior to the initial investment in order to be eligible for investment tax credits.
? The fund must be certifed as a Qualifed Venture Fund (QVF) by WEDC prior to the initial investment in order to be eligible for investment
tax credits.
? Angel investors are required to be accredited investors and must submit documentation to WEDC following the investment.
? The investment is considered complete upon deposit of the investment into the Qualifed Businesses bank account.
? Investment credits are issued frst come, frst served and based on the date WEDC receives the completed documentation of the investment
from the QNBV, not based on the date the investment is made by the investor.
? A tax credit request form must be provided.
? Investment documentation must be provided.
? If relocation occurs less than 12 months following the investment the penalty amount is 100% of the credit claimed.
? If relocation occurs more than 12 and less than 24 months following the investment the penalty amount is 80% of the credit claimed.
? If relocation occurs more than 34 months and less than 36 months following the investment the penalty is 60% of the credit claimed.
? There is a requirement that investors that receive investment tax credits keep the qualifying investment for a minimum of 3 years or repay
the tax credit. The change inserts two exemptions into the language requiring the investment to be kept for a 3 year period. The exemptions
include if the investment becomes worthless as determined by WEDC or if there is a bona fde liquidity event as determined by WEDC within
that time period.
Wisconsin’s Act 255 Early Stage Business Investment Program – established in 2005 by the Wisconsin State Legislature and
administered by the Wisconsin Economic Development Corporation (WEDC) – has been recognized as a leading national
program. The Program supports a critical need to drive new business formation in Wisconsin by incenting investments in, and
development of, high-potential opportunities in the state.
While this program has had a dramatic efect in catalyzing additional investments, more pre-VC-stage risk capital is needed to
drive business start-up performance in Wisconsin achieve parity with the region and nation and grow new businesses and jobs
in our state. WEDC will continue to pursue strategies to increase the number of entrepreneurs in the state and access to startup
and early-stage capital. WEDC will also evaluate modifcations to the program and the development of additional initiatives that
provide direct investment in startup and early-stage companies.
If you have any questions or comments regarding this report, please contact Chris Schifner, Technology Investment Manager
for the Division of Entrepreneurship and Innovation, at 608/210-6826, [email protected] or Lisa Johnson, VP of
Entrepreneurship and Innovation, at 608/210-6828, [email protected].
certification
outlook
“It’s a simple formula, really. And that’s the beauty of Act 255 –
it directs equity investments to a critical sector of Wisconsin’s
economy, one that will play a large role in creating future jobs:
high growth seed and early stage companies.”
Lisa Johnson, Vice President of Entrepreneurship and Innovation, WEDC
page
9
appendix a
Wisconsin Angel Tax Credit, List of Qualifed Businesses
The following businesses have been certifed as Qualifed Businesses under Wisconsin Statutes § 238.15. This certifcation solely
means that WEDC has found that each business meets the qualifcations specifed in Wisconsin Statutes § 238.15 and that each
business is therefore eligible to participate in WEDC’s Early Stage Business Investment Program.
Company Name Contact Location Telephone
Certifcation
Date
AhR Pharmaceuticals, Inc. Jiasheng Song Madison 608/265-9894 x3133 10/16/07
Alpha Universe, LLC Alexey G. Zdanovsky Madison 608/661-0861 9/21/06
AquaMost, Inc. Todd Asmuth Madison 608/204-8860 12/14/09
Aurizon Ultrasonics William Raaths Kimberly 920/731-5777 7/9/09
Aurora Spectral Technologies LLC Thomas Mozer Milwaukee 608/712-2172 10/4/10
Aver Informatics Kurt Brenkus De Pere 920-309-6020 10/6/11
BellBrook Labs, LLC Robert G. Lowery Madison 608/443-2401 2/18/05
Bill-Ray Home Mobility, LLC Joseph Vosters Appleton 920/915-8433 5/12/10
BioIonix, Inc. James Tretheway Mc Farland 608/255-8824 5/10/05
Blue Planet Strategies, LLC Patrick James Madison 608-334-4824 11/15/10
Caseus Energy, LLC Alexander Reyter Stratford (310) 235-1492 2/9/12
Cell Line Genetics, Inc. Roberto Herrera Madison 608/441-8161 11/17/08
Centrose LLC James Prudent Madison 608/209-8933 5/16/07
ConjuGon, Inc. Steve Watt Madison 608/441-2890 3/11/05
Cytometix Lane Brostrom Brookfeld 414/745-8000 12/14/09
Cytophil, Inc. Greg Johnson East Troy 414/961-7372 8/11/11
Deka Systems, LLC. Rob Gaddis Sun Prairie 608-443-7372 2/8/12
DeltaHawk Engines, Inc. Dennis Webb Racine 262-634-9660 9/13/06
Door 6, Inc. Jeremy Shafton Madison 262/293-6676 6/22/11
Dossette, LLC Kimberly Trygar Pleasant Prairie (262) 705-4494 10/6/11
Dynamis Software Corporation Mark Priestaf Franklin 877/511-7944 10/3/11
Echometrix LLC Barbara A. Israel Madison 608/217-2685 8/20/07
Elaion Biosciences Bill Checovich Madison 608-334-1778 3/14/12
Embedtek Kent Tabor Hartland 262/367-3900 5/12/10
Engineered Propulsion Systems, Inc. Michael J. Fuchs New Richmond 715-803-4290 5/24/10
Enhancement Medical, LLC Robert Hofschultz Wauwatosa 414-349-3976 1/12/12
Esker Technologies, LLC Bradley M. Rake Milwaukee 414/578-9566 5/5/05
Eso-Technologies, Inc. Bonnie Reinke Middleton 262-966-3398 10/13/08
Evrisko Systems, LLC John P. Greene Eau Claire 715/874-4684 5/18/09
Extend Manufacturing Chris D. Osswald Schofeld 715/359-3002 8/26/09
Flex Biomedical, Inc. Sal Braico Madison 608/213/8246 2/2/09
FluGen Inc. Paul Radspinner Madison 608/658-6095 11/12/07
Frozen Codebase LLC Ben Geisler Green Bay 414-350-9401 11/9/11
Golf Pipeline Brian Wroblewski Menomonee 414-899-4100 4/1/12
GWC Technologies, Inc. Stephen C. Weibel Madison 608/441-2722 5/5/05
HarQen, Inc. Kelly Fitzsimmons Milwaukee 414-755-1962 7/22/09
Helios USA, LLC Steven Ostrenga Milwaukee 907/292-7855 12/22/09
HMA Fire LLC Thomas Crabb Middleton 608/827-5000 1/25/11
Horizon Systems & Services, Inc. Bob Agazzi Sheboygan 920/803-8000 1/6/06
HSM, LLC Hensley Foster Milwaukee 414/236-4183 5/23/11
Idle Free Systems, Inc. Robert Hopton Watertown 920/206-9333 10/20/08
Illumatek, LLC John Miller Wales 414-313-4569 -
Imagination Trends Lisa Perzborn-Whiting De Forest 608/850-6277 8/16/10
page
10
appendix a, continued
Company Name Contact Location Telephone
Certifcation
Date
Imaging Biometrics Michael Schmainda Elm Grove 262-439-8252 4/11/12
InControl Medical, LLC Buzz Peddicord Brookfeld (262) 373-0422 6/18/12
Innosoft Thomas Culver Cleveland (920) 207-4977 11/9/11
Invenra Inc Roland Green Madison (608) 358-4273 1/25/12
Invivo Sciences, LLC Ayla Annac Madison (608) 713-0149 11/1/05
ioGenetics, LLC Jane Homan Madison 608/310-9540 3/22/05
Kenergy, Inc. Stephen Denker Thiensville (414) 405-5800 4/18/06
Keystone Insights, LLC David Noshay Menomonee
Falls
262-437-7389 4/25/12
Liveyearbook, Inc. Todd DeNoyer Neenah 920/277-4049 6/1/10
Lucigen Corporation David A. Mead Middleton 608/831-9011 1/19/05
Lumen Healthcare, Inc. Brian Curry Pewaukee 414-232-1325 12/14/09
Marvel Medtech, LLC Raymond D. Harter Madison 608/310-9560 2/7/05
Medical Cyberworlds, Inc. Frederick William Kron Verona 608/829-0049 8/20/07
Medical Engineering Innovations, Inc. James Will Madison 608/310-9556 1/12/11
MedTrak Steve Hushek Milwaukee (414) 731-7150 11/4/11
Microscopy Innovations, LLC Mark Nelson Marshfeld 715/387-8897 11/22/10
Montage Talent, Inc. Michael J. Bonk Delafeld 262/264-0662 4/19/10
Morgan Aircraft, LLC Mark O'Halloran Oostburg 312-865-1000 7/2/07
Murfe, Inc. Matthew Younkle Madison 608/234-5015 8/2/10
NanoMedex Pharmaceuticals, Inc. David L. Cooper Middleton (608) 826-7367 7/22/08
NCD Technologies Bob Shimmel Madison (608) 622-7996 -
NeuroGenomeX, Inc. Jacqueline Doeler Madison 608/335-7329 8/31/09
NeuWave Medical, Inc. Laura King Madison 608/213-4553 3/21/06
New River Technologies, LLC Ted Kanavas Grafton 262/391-6834 1/19/11
Northstar Medical Radioisotopes, LLC George P. Messina Madison 608-316-6980 4/1/12
NovaScan LLC Bill Gregory Milwaukee 262/893-7165 6/28/05
NovaShield, Inc. Praveen Sinha Madison 608/833-2610 2/17/06
Odyne Systems, LLC Joseph Dalum Waukesha 262-544-8405 11/1/10
Okanjo Partners, Inc. Henk Vlietstra Milwaukee (414) 810-1760 9/9/11
oneEvent Technologies Inc. Shawn Guse Mount Horeb (608) 320-0675 12/22/11
Pabst Engineering & Manufacturing, Inc. Kirby Pabst Onalaska 608/781-0861 9/2/08
PDM Solar, Inc. David Baker Wausau 715-574-4920 7/24/06
PerBlue, Inc. Justin Beck Waunakee 608/712-9449 7/28/10
Perscitus Biosciences, LLC James Thomas Madison 608/213-9646 5/28/08
Phoenix Nuclear Labs Greg Piefer Middleton 608/826-4267 6/3/08
Phyllotech, LLC Ryan W. Shepherd Madison 510/209-1367 4/6/10
Pilot Training Solutions LLC Chris Johnson Middleton (563) 249-4315 11/23/11
Pinpoint Softwares, Inc. Andrew Hoeft Onalaska 608-797-4435 2/2/12
PlantPharm Biomed, Ltd. Bob Britt Delavan 262/728-8815 2/20/08
Platypus Technologies, LLC Barbara A. Israel Madison 608/237-1270 1/19/05
ProCertus BioPharm, Inc. Todd Argall Madison 608/469-5371 1/16/07
Procubed, LLC Jim Maerzke Kenosha 262/654-5602 11/8/10
Promentis Pharmaceuticals, Inc. Daniel G. Lawton Milwaukee 262/302-9039 11/3/08
Quincy Bioscience Holding Company, Inc. Michael Beaman Madison 877/677-8652 3/30/05
Quintessence Biosciences, Inc. Ralph Kauten Madison 608/441-2951 1/28/05
Quter Todd Wray Neenah (920) 886-8275 -
Rapid Diagnostek, Inc. Harry Norris Hudson 651/604-4204 10/29/07
Reciprocal Labs Corporation David Van Sickle Madison (608) 251-0470 6/9/11
Renewegy, LLC Jef Ehlers Oshkosh 877-424-4632X201 5/23/11
page
11
appendix a, continued
Company Name Contact Location Telephone
Certifcation
Date
Renwig Custom, LLC Brennon Garthwait Whitewater 920-675-6758 4/19/12
Riva Solutions, LLC Mohammed Hashim-Waris Madison 608/222-3344 3/8/10
Semba Biosciences, Inc. Robert Mierendorf Madison 608/441-8009 6/30/05
Shamrock Energy Corporation Charles Gibson Oshkosh 920/851-2312 11/22/10
Shindigs Brendon Thomas Milwaukee 414-469-7437 2/22/12
SHINE Medical Technologies, Inc. Greg Piefer Middleton (608) 831-0814 12/13/10
Shoutlet, Inc. Jason Weaver Madison 608/833-0088 10/27/10
Silatronix Inc Mark Zager Madison 414/840-9666 3/12/08
Sirkpath, Inc. Mark D. Westfall Neenah 920/428-0929 3/1/05
Smoke-Break, LLC Brett Roth Milwaukee 800/372-8332 4/5/11
SnowShoeFood, Inc. Claus Moberg Madison (608) 807-7569 12/28/11
SoLoMo Identity, LLC Liz Eversoll Madison (608) 220-1900 4/11/12
Somna Therapeutics Nick Maris Mequon 262-388-1186 4/16/12
Sonoplot, Inc. Glen Donald Middleton 608/824-9311 1/23/08
SpeechTails, Inc Amy Reno Elm Grove (414) 659-5482 6/8/12
Stablebody Technologies, LLC Joseph Firca Madison 608/698-8445 7/22/10
Stealth Therapeutics, Inc. Brad Glenn Madison 920/429-9006 11/27/07
Stemina Biomarker Discovery, Inc. Elizabeth L. R. Donley Madison 608-831-3592 4/16/07
StrandVision, LLC Mike Strand Menomonie 715/833-9501 11/22/05
Stratatech Corporation Lynn Allen-Hofmann,
Ph.D,
Madison 608/441-2750 3/26/07
StudyBlue, Inc. Rebecca Splitt Madison (608) 441-1149 4/15/09
Super D Ted Schwarzrock Eau Claire 612-710-1489 3/6/12
Surgical Site Solutions, Inc. James Kregel Sheboygan 920/494-4786 7/6/10
Swallow Solutions, LLC JoAnne Robbins Madison 608/231-3868 8/18/08
Tascet, Inc. Larry Aubol Madison 608-442-8888 9/20/05
TermSync, Inc. Mark Wilson Madison 608/316-8380 8/2/10
TrafcCast International, Inc. Jing (Connie) Li Madison 608/268-3911 6/20/06
Transthermal LLC Troy Livingston Conover 708-370-2700 -
U.S. Pride Products, LLC Charles VanDusartz Hammond 715-246-9237 8/9/10
U.S. Trail Maps, Inc. Dean Forss Wausau 715/ 845-777 x3 6/28/05
Vatrix Medical, Inc. Matthew Ogle Madison 952/224-5797 11/23/09
Vibetech, Inc. Jef Leismer Sheboygan 920/287-1930 4/1/10
Virent, Inc. Lee Edwards Madison 608/663-0228 1/7/05
Wellsys, LLC Richard Brown Madison 608-663-7100 11/8/10
WholeTrees, LLC Amelia Baxter Stoddard (608) 452-3894 6/18/12
Xela Innovation, LLC Todd Muderlak Glendale 414/272-3983 12/14/09
Xolve, Inc. John Biondi Middleton (608) 203-8362 8/16/10
Zurex Pharma, Inc. Carmine J. Durham Middleton (608) 203-9090 7/12/10
Zurex PharmAgra, LLC Carmine J Durham Middleton (608) 203-9090 3/8/11
page
12
Wisconsin Angel Tax Credit, List of Credits Issued
The following businesses received investments in 2011 that qualifed under WEDC’s Early Stage Business Investment Program
under Wisconsin Statutes § 238.15. Issuance of these certifcates solely means that WEDC has found that the investment meets
the qualifcations specifed in statute and that the qualifed investor or qualifed fund’s investor is being awarded tax credits under
WEDC’s Investment Tax Credit Program.
appendix b
Certifed Company Tax Credit Angel Investment Amount (1) ESS Investment Amount (2)
Alice.com $721,521 $2,886,083
AquaMOST, LLC $686,693 $2,746,773
Aurizon Ultrasonics $12,500 $50,000
Aurora Spectral $158,125 $632,500
Aver Informatics, Inc. $218,750 $875,000
Brazen Careerist, Inc. $111,250 $445,000
Cellular Dynamics International $1,000,000 $1,086,668 $2,913,332
Cytophil, Inc. $87,750 $351,000
Dimensional Technology $25,964 $103,856
Door 6, Inc. $15,625 $62,500
Engineered Propulsion $135,673 $542,690
Esker Technologies, LLC $87,500 $350,000
Eso-Technologies, Inc. $41,448 $165,792
FluGen Inc. $714,072 $465,100 $2,391,189
Frozen Codebase LLC $95,000 $40,000 $340,000
HarQen, Inc. $309,800 $717,915 $521,284
HSM, LLC $50,200 $200,800
Imagination Trends $106,250 $425,000
Liveyearbook, Inc. $346,250 $1,385,000
Montage Talent, Inc. $741,128 $1,164,510 $1,800,000
Morgan Aircraft, LLC $29,167 $116,667
Nanomedex Pharmaceuticals $1,004 $4,016
NeoClone Biotechnology $12,500 $50,000
Networked Insights $294,615 $543,461 $635,000
NeuWave Medical, Inc. $878,763 $2,270,522 $1,244,528
New River Technologies $39,460 $157,840
NovaScan LLC $75,000 $300,000
NovaShield, Inc. $102,500 $410,000
Okanjo Partners, Inc. $375,000 $1,500,000
PDM Solar, Inc. $16,725 $66,900
ProCertus BioPharm, $192,500 $70,000 $700,000
Quincy Bioscience $59,750 $239,000
page
13
(1) Investment amounts do not refect the total amount invested in the company, only the amount received in tax credits.
(2) ESS Tax Credits – Early Stage Seed Investment Tax Credit commonly called the Venture Fund Credits
Certifed Company Tax Credit Angel Investment Amount (1) ESS Investment Amount (2)
Quintessence $275,584 $1,102,334
Quter, Inc. $2,500 $10,000
Rapid Diagnostek, Inc. $25,000 $100,000
Ratio Inc. $12,500 $50,000
Reciprocal Labs Corporation $167,500 $670,000
SHINE Medical $1,320,919 $1,383,676 $3,900,000
Shoutlet, Inc. $125,000 $500,000
Silatronix, Inc. $539,503 $1,157,997 $1,000,016
Stealth Therapeutics $90,625 $362,500
Stemina Biomarker $62,500 $250,000
Stratatech Corporation $31,250 $125,000
Surgical Site Solutions, $14,000 $56,000
Tascet, Inc. $208,000 $832,000
TermSync, Inc. $51,250 $205,000
TrafcCast International, $297,866 $150,000 $1,041,465
Xolve, Inc. $11,250 $45,000
Zurex Pharma, Inc. $67,500 $270,000
Zurex PharmAgra, LLC $131,250 $50,000 $475,000
appendix b continued
wedc.org | 608 210 6701 | 201 W. Washington Ave, Madison, WI 53703
Governor Scott Walker chairs the
WEDC Board of Directors composed
of state legislators, departmental sec-
retaries and private business owners.
The 13-member Board of Directors
provides WEDC with strategic leader-
ship and operational oversight repre-
senting statewide public and private
economic development interests.
Ofcers
Chair
Scott Walker
Governor
State of Wisconsin
Vice-Chair
Dan Ariens
President and CEO
Ariens Company
Treasurer
Scott Klug
Managing Director of Public Afairs
Foley and Lardner
Secretary
Lisa Mauer
President
Tool Service Corporation
Members
Rep. Peter Barca
64th Assembly District
Raymond Dreger
CEO/President
Seeds and Stuf Market Inc.
Corey Hoze
Senior Vice President
Associated Banc-Corp.
Sen. Julie Lassa
24th Senate District
Paul Radspinner
President and Chief Executive Ofcer
FluGen, Inc.
C. Thomas Sylke
Owner and Principal
Sylke Law Ofces, LLC
Don Weber
Founder and CEO
Logistics Health Inc
Rep. Mary Williams
87th Assembly District
Sen. Rich Zipperer
33rd Senate District
Learn more about the WEDC’s Divison of
Entrepreneurship and Innovation at wedc.org
doc_501966398.pdf