Wisconsin venture investing slides 40% in 2011

Wisconsin companies raised $72 million in venture capital in 2011, a 40% drop from a year earlier, according to figures released Friday.

The decline contrasted with venture investing nationally, which rose 22% to $28.4 billion, according to the MoneyTree Report by PricewaterhouseCoopers LLP and the National Venture Capital Association.

Wisconsin's 2011 performance also caused its average five-year venture capital investment growth rate to lag further behind eight states identified by the Wisconsin Technology Council as having workforces of similar sizes.

Wisconsin pulls in such a small share of the nation's venture capital investments - far less than 1% - that it's difficult to draw any conclusions, even from the annual figures, said John Neis, managing director of Madison-based Venture Investors.

But the bigger-picture averages show the state is lagging nationally, Neis said. "And the big challenge is there's a lack of venture capital funds active in this market with venture capital professionals on the ground looking for deals and trying to syndicate deals," he said.

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