Wisconsin Investment Partners

Prospective Members

Wisconsin Investment Partners was founded in 2000 with 20+ members, most remaining active. Several new members have joined in recent years, bringing significant knowledge and experience in key areas.

Meetings are held each month on the 3rd Wednesday. Typically, a presentation is made by a new company, which has been screened by our 6 person screening committee. Also, we have updates from portfolio companies and discussion of evaluation information for target companies.

Our investment philosophy is life science oriented seed investing with a healthy dose of “opportunism” for attractive projects outside this charter. Most companies are Wisconsin based. Often, we collaborate with other angel networks and investors on an early round and occasionally we join later, larger rounds. We invite other investment groups to join our meetings and on a reciprocal basis.

Our network has invested in more than 15 projects with an average of $250,000 per project. Each member decides his or her investment for each project. There is no annual minimum for investments. We have made approximately 3 new investments each year, and 3 add-on investments per year. The investments are made via an LLC, which is set up exclusively for each investment, greatly facilitating record keeping and tax return preparation. These LLC’s adapt well for member investment vehicles alternatives such as trusts, etc. The LLC liquidates upon dissolution or sale of the company and distribution to owners and your LLC shares provide transfer flexibility, etc.

Membership in Wisconsin Investment Partners requires a $5000 fee, which has been a one-time fee thus far in our 7-year history. The fees are used for professional fees, such as legal and tax counsel. A tax return is provided for each member of each investment. Co-managers conduct the work in finding, screening, evaluating and administering investments. Co-manager compensation is 10% of any gain in investments at time of liquidation, where co-managers have invested. A rather lengthy operating agreement details the rights of members, etc.

Our experience is that members most comfortable with the investment activity are portfolio savvy and familiar with the protracted timetables of life science companies. Many are keenly interested in providing support to start up companies in Wisconsin, utilizing their capital, knowledge and experience. Expected financial gain is similar to venture capital goals.

Our typical investment is made via common stock with dilution protection and other protective items and is guided by experienced transaction attorneys. We have invested in convertible notes and preferred stock where conditions warrant. Most investments qualify for Wisconsin Act 255 income tax credits to investors. This credit is equal to 25% of the investment, over 2 years and has the usual complexities of AMT limitation, etc.

Please contact one of our co-managers for further information. If interested, the best way to evaluate your participation is to attend a monthly meeting as a guest for a first hand look at the what and how of angel investing. The pooling of experience, contacts and knowledge is essential to our success.

Note: Membership in angel networks requires certification of accredited investor status. Annual income and/or net worth tests and basic financial skills knowledge apply.