WEDC grant will support efforts to provide seed funding for Milwaukee startups

The Milwaukee Development Corporation has received a $500,000 Capital Catalyst Grant from the Wisconsin Economic Development Corporation (WEDC) for the creation of a $1 million seed fund to support companies in advanced manufacturing and other technology sectors.

The fund will target seed-stage ventures, including graduates of local accelerator programs such as The BREW, WERCBench Labs, FaBCAP and Gener8tor to provide additional capital for activities leading to investment readiness or revenue generation.

The fund also aims to support growth-focused projects of existing tech companies, as well as other eligible seed-stage businesses with technologies outside the scope of existing area accelerators. The Milwaukee Development Corporation is the operating entity of the Milwaukee 7 economic development organization, which in January received a $60,000 Entrepreneurship Support Grant from WEDC to support its efforts to increase collaboration and develop common strategies to optimize Milwaukee’s entrepreneurship climate.

“Finding and filling gaps in funding for these growing companies – especially those in our most promising cluster industries – is critical to the success of individual businesses and the entire Milwaukee 7 Region,” said Pat O’Brien, Milwaukee 7 executive director. “We are grateful to WEDC for recognizing this need and providing a needed boost to these efforts.”

“This organization is playing a critical role in facilitating the development of high-growth business ventures in the region,” said Aaron Hagar, WEDC’s vice president of entrepreneurship and innovation. “The Capital Catalyst Program has a proven track record of results, and we’re looking forward to continued success as we collaborate with these organizations to support next-generation companies.”

Since its inception in 2012, the Capital Catalyst Program has helped organizations and communities provide $3.5 million in seed funding to more than 100 businesses statewide that employ nearly 500 full-time workers. Those companies have generated $127 million in additional investment and revenue.

The program provides matching grants to seed funds managed by local communities or other organizations dedicated to stimulating entrepreneurship. These funds provide grants, loans and/or investments in startups or early-stage, innovative small businesses that operate in their region. Loan repayments and returns on investment stay within the fund to assist additional startups and create a supportive environment for entrepreneurs.

The Capital Catalyst Program is one component of WEDC’s suite of entrepreneurship resources, which includes support for startup accelerators, investor tax credits and technology loans. In addition, WEDC supports and engages an existing statewide network of partners that offers business training, mentorship and financing to aspiring entrepreneurs.