What Will Be Our LegacyFor Wisconsin?

We are at a crossroads.

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Today’s Conversation

1. Where we are now as a State

2. Where we need to be

3. How we get there

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We’re at a Critical Decision Point —We need jobs!

Wisconsin ranked #47 in entrepreneurial activity

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Company Creation Turns the Tide• Kauffman Foundation: All net new job

growth from young companies

• 2012 Governors Assoc.: Traditional economic jobs model is outdated

• WEDC Report: Tech companies’ $70K median wage much higher than State’s $50K median wage

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We Have the Ideas Here

• State ranked ~ #3 in annual research spending

• Ranked #14 in patent creation

• World-class academic institutions

• 400+ applicants for 2013Governor’s Business Plan Contest

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And the Young Talent

• Wisconsin academic institutions provide significant opportunities for research, learning & mentoring!

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But Where is The Capital Funding?!

• Wisconsin is lowly ranked in capital creation and funding

• Many states are being aggressive — $150M recently in Colorado alone

• We are behind and need to act now!

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Public Funding Outlook is Bleak

• State Budget now reduced from$300M to only $25M—if that.

• How to deploy dollars is in question

• The politics fluctuate

• No long-term solution

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Private Funding is limited

• Angel investors active in space– Uniquely understand risk and failure– But always will be in short supply

• Wealthy individuals, corporations and foundations are not inclined to be angels

• We are falling behind … and fast!– MJS: Can use up to $350M right now

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New Strategy for Capital Formation• Move discussion

from “Investment”to “Philanthropy”

• Enlist generous Badgers worldwide to save our state

• Create and retain jobs from our ideas for our graduates

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New Strategy for Capital Formation

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BrightStar Wisconsin

• As a 501(c)(3) receives donor funding

• Deployed as equity in early-stage companies

• Returns continuously reinvested backinto foundation

• Expert founders and advisors knowthe space

• Grow and keep brightest young businesses and talent in Wisconsin

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All-Star Team of Founding Donors

Tom Shannon Jeff RusinowJeff Harris Mike Shannon

Susan Engeleiter George Mosher Mark Burish Michael Drescher

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Our Job Creation Ecosystem

Co-InvestorsAngels

Early-StageFundsWARF

Donors

WealthyIndividuals

Corporations

Foundations

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Company/Job Creation Programs

Co-Investing

Grants

Internships

Donor Matching

Recruit aBadger

BadgerBullpen

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Who Will Step Up Next?• New philanthropic option

• “Badgers” by birth, education or choicecan help Wisconsin compete and thrive

• BrightStar Wisconsinwill fund early-stage companies and create high-paying jobs

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Key Facts to Know…

1. Investment committee comprised of early-stage experts

2. Foundation run by independent board

3. Assets always owned by foundation

4. ~ 100% of contributions go to mission

5. Support WEDC job creation initiative

6. Tom Shannon is founder and uncompensated President/CEO

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A Simple Choice

“It’s not too strong of a statement to say that the kind of state Wisconsin becomes will depend upon efforts such as Brightstar.”

– Milwaukee Journal Sentinel

Editorial Board 7/22/13

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Thank You!