Creating access to capital today for the jobs of tomorrow

“Wisconsin has biotechnology investment down to a science, bounding ahead of Minnesota with a broad, tax-friendly strategy.” -Minnesota Star Tribune, 09/30/2009

The C.O.R.E. Jobs Act increases Accelerate Wisconsin, the state’s successful angel and venture capital investment tax credit program, by $3 million for 2010 and by $12 million for every year thereafter. The new cap would make $8 million in tax credits available in 2010 and $20 million in 2011 and beyond.

This modest investment will leverage $12 million private investment. Because of these tax credits, angel investors spent $15 million on 53 deals in Wisconsin in 2008 compared with just $1.74 million and 11 deals in 2003.

For example, in October 2009 alone, eight biotechnology companies moved to Wisconsin from other states, due in large part to the availability of investor tax credits: Aldevron (Madison), Flex Biomedical, Inc. (Madison), Inviragen, Inc. (Madison), Exact Sciences Corporation (Madison), NanoMedex (Fitchburg), Radip Diagnostek (Hudson), RJA Dispersions, LLC (Hudson) and VitalMedix (Hudson).

From idea to invention to market; accelerating business growth in Wisconsin.

“Study after study has established links between academic research and development and job creation through what is called “technology transfer,” or moving ideas from the laboratory bench to the marketplace.”

-Tom Still, president, Wisconsin Technology Council

The C.O.R.E. Jobs Act includes $2 million for WiSys, the UW System’s technology transfer arm, to turn research into jobs by creating partnerships between UW researchers and small and mid-sized businesses.

Several hundred small- and medium-sized Wisconsin companies lack the critical research and development resources needed to maintain the competitiveness required in this global economy. Wisconsin’s high-tech industry is worth more than $8.7 billion, employs more than 34,000 people and is the fastest growing segment of our the economy.

Mouse over regions below to learn where C.O.R.E. programs have already created jobs around the state.

Regulatory One-Stop Shop

The C.O.R.E. Jobs Act provides funding to staff the Regulatory Ombudsman Center which was created in the budget. Once staffed, the office will help ensure businesses get speedy approval for the permits, licenses and other state certifications needed to create new jobs.

The package also includes funding to establish an Emerging Technology Center at the University of Wisconsin – La Crosse to facilitate research commercialization and new company start-ups. The new center will be modeled after the successful programs at UW-Platteville and UW-River Falls that have partnered with the private sector to create new jobs.

Mycophyte Discovery LLC which creates therapeutic compounds from native plants in partnership with UW-La Crosse; Graphene Solutions LLC, which is a leader in emerging nanotechnology and has developed breakthrough technology in nanomaterials in partnership with UW-Platteville; Oshkosh Nanotechnology LLC, which develops nanophosphors for solid state lighting in partnership with UW-Oshkosh are all examples of successful collaborations between UW System campuses and the private sector to create new businesses and jobs in Wisconsin.

For more information about WiSys, please visit www.wisys.org.

A small investment today for more jobs tomorrow

The C.O.R.E. Jobs Act creates two microloan pilot programs to help entrepreneurs open the business they’ve always wanted to but never could. Typically, microloans are typically made in the amount of $1,000 to $25,000 to any Wisconsin resident who can prove they have the next great small business idea.

By some accounts, small businesses drive 80% of all new job growth in Wisconsin and across the country. As the credit market continues to tighten, more would-be business owners are turning to microloan providers to stay in business and to help get new businesses off the ground.

One recent recipient of a microloan, Vasyl Lemberskyy, recently used the money he received to open the Transfer Pizzeria Café in Milwaukee, which relies on local products for its 50-some varieties of pizza, according to MSNBC.com.

From idea to concept: Finding the next big idea

The University of Wisconsin – Madison Burrill Technology Business Plan Competition and the Wisconsin Governor’s Business Plan Contest have proven to be the launch pad for several successful Wisconsin businesses. The C.O.R.E. Jobs Act will fund a UW System-wide business plan competition campus-based entrepreneurs in the creation, start-up and early-growth stages of high-tech businesses in Wisconsin. Participants in both contests have had the chance to win seed capital and prizes in excess of $850,000.

Chad Sorenson, who won second prize in the Burrill competition for his entry that launched Fluent Systems, went on to sell that business for $1.5 million and opened Sologear, his second venture in Wisconsin.

Technology Incubator Center

The C.O.R.E. Jobs Act accelerates a $70,000 grant included in the state budget for the Pleasant Prairie Technology Incubator Center. The incubator is being designed to house technology-related business start-ups and to help lure companies like Abbott Labs to the area.