A new annual report from the Badger Fund of Funds mentions its investment in two La Crosse startup companies and the Idea Fund’s contributions. The Badger Fund touts its $30 million investment portfolio in Wisconsin companies. This includes just over $5 million committed by the La Crosse-based Idea Fund. The Idea Fund is one of five groups of investors around Wisconsin that are investing in startup and early-venture companies since the Fund of Funds began in 2013.
Two La Crosse companies are listed in the annual report. DropCap, which helps book publishers sell the translation rights. The second is Swallow Therapeutics, which producing the device and other products that treat and aid a swallowing disorder called dysphagia. Unlike other investments, the Idea Fund purchased the company in 2019 after the former owner stopped manufacturing. The Idea Fund then hired a new CEO and employees to bring the product to market.
The Idea Fund formed in 2016 with the initial investment by Don Weber, who had sold Logistics Health just a few years earlier. The investors recruited La Crosse native Jonathan Horne who was working on Wall Street at the time. Weber’s daughter, Libby Weber, now helps Horne manage the fund.
Horne recently announced the creation of a second fund. Fund I totals $13 million. The new fund formed in September has more than $20 million in investments with a goal of $25 million.
The Idea Fund is one of five funds statewide that are investing in seed and early-stage companies in the Upper Midwest. All contribute to the Badger Fund of Funds, which provides investors tax deductions for doing so. The Badger Fund began in 2013 due to the state not having any investors in local startup companies, making it challenging for companies to grow and hopefully stay in Wisconsin.
“Great ideas live here. We know because we live here too,” is the tag line on the Idea Fund’s website. It states it seeks businesses, “before first sale or even before a first product.” Horne and Weber look companies with a founding team that has great insight into a problem-solving product. The entity may have started product development and perhaps beta-tested it. The industries invested in are diverse from IT, agriculture, manufacturing, and information technologies.
“Jon Horne and Libby Weber have done an incredible job managing the Idea Fund,” said Ken Johnson, a Badger Fund of Fund partner. “Their focus on being the first investor in new startups with a geographic target of investment opportunities in north and west Wisconsin has been extremely successful.”
Other funds in $25 million Badger Fund of Funds Venture group include:
- Winnebago Seed Fund LP in Neenah
- Rock River Capital Partners Fund in Madison
- The Winnow Fund for college entrepreneurs in Madison
- Gateway Capital in Milwaukee
Spotlight on Companies Receiving Badger Fund of Fund Investments
(La Crosse, WI) Boosting the Sale of Book Translation Rights
(La Crosse, WI) Boosting the Sale of Book Translation Rights
(Madison, WI) Local legislative tracking software – Curate scans meeting minutes, agendas, planning, and other documents to help you stay in the loop about the issues you care about.
(Madison, WI) Agriculture software – assigning a risk score for agriculture assets for lenders, insurers, and service providers.
(Madison, WI) Engineering Software – SciArt provides a GPS for the engineer, which generates designs based on engineering constraints.
(Milwaukee, WI) AI-Powered Sourcing Platform for Direct Materials – Build Supply Chain Resilience & Improve Operational Efficiency by getting critical supply chain insights and digitizing manual processes throughout the product lifecycle.
