The panelists also addressed the nagging problem of the “valley of death” in funding startups in Wisconsin. While the seed round is relatively easy to raise, many startups struggle to get additional investment beyond that stage.
“There is a real regional strength here in the state. You look at what comes out of UW-Madison, -Milwaukee, the other institutions here—there’s a lot going on,” Arida said. “There’s not a lot of follow-one capital. There has been a disproportionate surge in seed investing relative (to later stage investment).”