Wisconsin Economic Development Corporation (WEDC) Market Research Report

Background

Overview

The Wisconsin Economic Development Corporation (WEDC) is the state's lead economic development agency, established in 2011 to replace the Wisconsin Department of Commerce. WEDC's mission is to strategically invest in Wisconsin to enhance the economic well-being of its people, businesses, and communities. The agency collaborates with over 600 regional and local partners, including economic development organizations, academic institutions, and industry groups, to foster business growth and job creation across the state.

Mission and Vision

Mission: To strategically invest in Wisconsin to enhance the economic well-being of people, businesses, and communities.

Vision: An economy for all, where every Wisconsinite has the opportunity to thrive.

Primary Area of Focus

WEDC focuses on business and industry development, economic and community development, entrepreneurship and innovation, and international business development. The agency provides resources, technical support, and financial assistance to companies, partners, and communities in Wisconsin.

Industry Significance

As Wisconsin's lead economic development agency, WEDC plays a crucial role in enhancing the state's business climate, supporting sustainable business growth, and creating job opportunities. Its efforts contribute significantly to the state's economic development and competitiveness.

Key Strategic Focus

Core Objectives

Business and Industry Development: Support the growth and expansion of businesses across various sectors.

Economic and Community Development: Enhance the quality of life in communities through infrastructure improvements and community revitalization projects.

Entrepreneurship and Innovation: Foster a culture of innovation by supporting startups and emerging industries.

International Business Development: Promote Wisconsin as a destination for international investment and facilitate global market access for local businesses.

Specific Areas of Specialization

Workforce Development: Address workforce challenges by providing training and resources to businesses and workers.

Community Revitalization: Invest in programs that rejuvenate downtowns and commercial districts.

Entrepreneurial Support: Offer financial products, business education, and technical assistance to entrepreneurs.

Key Technologies Utilized

WEDC leverages data analytics and digital platforms to assess economic trends, monitor program effectiveness, and facilitate communication with stakeholders.

Primary Markets or Conditions Targeted

Small and Medium-Sized Enterprises (SMEs): Provide support to businesses aiming to expand or relocate within Wisconsin.

Startups and Entrepreneurs: Offer resources and funding to foster innovation and business creation.

Underdeveloped Communities: Focus on revitalizing areas with economic challenges through targeted investments.

Financials and Funding

Funding History

WEDC receives funding from various sources, including state appropriations, federal grants, and private investments. In fiscal year 2024, the agency reported $2.4 billion in planned capital investments by state businesses, the highest level since its creation.

Total Funds Raised

In May 2024, WEDC launched the Wisconsin Investment Fund, a $100 million public-private venture capital initiative aimed at supporting startup businesses throughout the state. The fund is initially backed by $50 million from federal funds and $50 million from private investors.

Notable Investors

The Wisconsin Investment Fund includes contributions from various private venture capital firms, each matching the state's investment dollar-for-dollar. Specific investors include HealthX Ventures, Venture Investors Health Fund, Serra Ventures, NVNG Investment Advisors, and the Idea Fund of La Crosse.

Intended Utilization of Capital

The capital from the Wisconsin Investment Fund is allocated to support innovative companies in sectors such as technology, healthcare, agriculture, and manufacturing. The goal is to create at least a $500 million impact over the first years of the fund as the selected companies grow.

Pipeline Development

Key Pipeline Candidates

WEDC's pipeline includes a diverse range of startups and emerging companies across various industries, particularly those in technology, healthcare, agriculture, and manufacturing sectors.

Stages of Clinical Trials or Product Development

While WEDC does not directly engage in clinical trials, it supports companies at various stages of product development, from early-stage startups to established businesses seeking expansion.

Target Conditions

The agency focuses on fostering innovation, job creation, and economic growth across the state, with particular emphasis on revitalizing underdeveloped communities and supporting sectors with high growth potential.

Relevant Timelines for Anticipated Milestones

WEDC's initiatives, such as the Wisconsin Investment Fund, are designed to achieve significant economic impact over the coming years, with expectations of creating substantial job opportunities and fostering business growth.

Technological Platform and Innovation

Proprietary Technologies

WEDC utilizes proprietary data analytics platforms to assess economic trends, monitor program effectiveness, and facilitate communication with stakeholders.

Significant Scientific Methods

The agency employs data-driven approaches to evaluate the impact of its programs, utilizing economic modeling and performance metrics to inform decision-making.

Leadership Team

Executive Profiles

Missy Hughes: Secretary and CEO of WEDC since October 2019. She has been instrumental in launching initiatives like the Wisconsin Investment Fund and has a background in economic development and public policy.

Henry C. Newell: Board Chair of WEDC. He is the retired CEO of Wausau Paper and has been involved in various leadership roles within the organization.

Key Contributions

Under Missy Hughes' leadership, WEDC has launched significant initiatives such as the Wisconsin Investment Fund, aiming to support startup businesses across the state. Henry C. Newell's leadership has been pivotal in guiding the board's strategic direction and ensuring effective governance.

Competitor Profile

Market Insights and Dynamics

The economic development sector in Wisconsin is characterized by a collaborative network of public and private entities working to enhance the state's business climate. WEDC operates alongside regional economic development organizations and other entities focused on business growth and community development.

Competitor Analysis

Key competitors include regional economic development organizations such as New North, Centergy, and Grow North, which focus on specific geographic areas within Wisconsin. Additionally, organizations like the Wisconsin Women's Business Initiative Corporation (WWBIC) provide support to small businesses and entrepreneurs, particularly those from underserved communities.

Strategic Collaborations and Partnerships

WEDC collaborates with various regional economic development organizations, academic institutions, and industry groups to leverage resources and expertise. These partnerships enhance the agency's ability to implement effective economic development strategies across the state.

Operational Insights

WEDC differentiates itself through its statewide focus, comprehensive support services, and collaborative approach. The agency's ability to adapt to changing economic conditions and its commitment to fostering a business-friendly environment position it as a key player in Wisconsin's economic development landscape.

Strategic Opportunities and Future Directions

Strategic Roadmap

WEDC's strategic roadmap includes expanding support for startups and emerging industries, enhancing workforce development programs, and investing in community revitalization projects. The agency aims to continue fostering innovation and business growth to strengthen Wisconsin's economy.

Future Business Directions

Future initiatives may focus on increasing international business development, supporting sustainable industries, and addressing workforce challenges through targeted programs.

Opportunities for Expansion

WEDC has opportunities to expand its impact by deepening partnerships with private sector investors, enhancing support for underrepresented communities, and leveraging federal resources to support economic development initiatives.