Wisconsin Investment Partners LLC Information

Wisconsin Investment Partners was founded in 2000 with 20+ members, most remaining active. Several new members have joined in recent years, bringing significant diversity in knowledge and experience. Membership is now at the 70+ level and we typically add 3 to 5 new members each year. Meetings are held each month on the 3rd Wednesday. Typically, a presentation is made by a new company, which has passed our screening group consisting of interested members. The monthly meetings also include updates from portfolio companies and discussion of evaluation information for target companies. Our investment philosophy is life science oriented, and more recently technology, seed investing, with a healthy dose of "opportunism" for attractive projects outside this charter. Most companies are Wisconsin based. We often collaborate with other angel networks and venture capitalists on an early round and occasionally we join later, larger rounds. We invite other investment groups to join our meetings on a reciprocal basis. Our network has invested in more than 40 projects with an average of $300,000 per project. Each member decides his or her investment for each project. There is no annual investment minimum for members. We have typically made 5 new investments each year. Follow on investments have become more prominent. The investments are made via an LLC, which is set up exclusively for each investment, greatly facilitating recordkeeping and tax return preparation for each investor member. These LLCs adapt well for member investment vehicles alternatives such as trusts, etc., according to member comments. The LLC liquidates upon dissolution or sale of the company and distribution to owners and your LLC shares provide transfer flexibility, etc. Membership in Wisconsin Investment Partners requires a $6000 fee, and $1000 annual fees after the member's second year. The membership fees are used primarily for professional fees, including legal and tax counsel. A tax return is provided for each member of each investment. Co-managers facilitate the work in finding, screening, administering investments and overall administration of WIP. A rather lengthy operating agreement details the rights of members, etc. Membership in angel networks requires member's certification of accredited investor status. Tests of annual income and/or net worth and basic financial skills knowledge apply. Our experience is that members most comfortable with the investment activity are portfolio savvy and familiar with the protracted timetables of life science companies. Many are keenly interested in providing support to start-up companies in Wisconsin, utilizing their capital, knowledge and experience. Expected financial gain is similar to venture capital goals. Our typical investment is made via common stock with dilution protection and other protective items and is guided by experienced transaction attorneys. We have invested in convertible notes and preferred stock where conditions warrant. Most investments qualify for Wisconsin Act 255 income tax credits to investors. This credit is equal to 25% of the investment over 2 years and has the usual complexities of AMT limitation, etc. Please contact one of our co-managers for further information. If interested, the best way to evaluate your participation is to attend a monthly meeting as a guest for a first hand look at the what and how of angel investing. The pooling of experience, contacts and knowledge is essential to our success.