Wisconsin’s Act 255 heats up angel investment in 2005, though VC involvement lags

Wisconsin’s decision to give tax credits to investors in early-stage companies has shown results in its first calendar year, especially for individual investors.

Angel investors have so far applied for $1.8 million of the $3 million in available tax credits for 2005, state Department of Commerce figures show. But of the $3.5 million in tax credits available to venture capitalists, almost none have been used.

"We knew there would be a lag on the venture capital side," said John Neis, senior partner with Madison-based Venture Investors. "On the angel side, basically the legislation gets passed and immediately angels can take advantage of it. Venture capital firms raise their money … every three to five years."

Jason Stitt

Full Story: http://wistechnology.com/article.php?id=2530