Angel Investing Activity in Wisconsin in 2005
Dr. David J. Ward
President and Founder of NorthStar Economics, Inc.
January 31, 2006
This report examines angel investing activity in Wisconsin in 2005. Using data from the
Wisconsin Department of Commerce and a survey by NorthStar Economics Inc., the
report examines reported angel investing by individual angels and by organized angel
Overall reported angel investing in Wisconsin in 2005 was over $19 million. Of this
amount, approximately $14 million of angel investments came from individual ange l
investors and over $5 million came from organized angel groups.
For the first time, thanks to data related to Act 255, we are able to get a partial picture of
individual angel investing in Wisconsin. According to data reported under Act 255,
individual angels invested nearly $14 million in angel deals in 2005.
The number of group angel investing deals and dollars invested increased substantially in
2005 when compared to 2004. The dollars amount of group investing increased 65% to
$5,587,496 while the number of deals more than doubled from 9 in 2004 to 20 in 2005.
Angel investors took full advantage of available angel tax credits in 2005. Individual
angels and angel groups were allocated $3,000,000 in angel tax credits in 2005. That was
the maximum amount available for angel investments in calendar year 2005.
Act 255 has helped to create a positive climate for angel investing in Wisconsin. Though
it is difficult to isolate the effect of Act 255, feedback from angel investors indicates that
the availability of angel tax credits and certified new business ventures has helped to
increase the number of angel deals and the focus on angel investing in Wisconsin.
We would like to acknowledge the cooperation and support of individuals and
organizations that made this report possible.
Data from this report cam