The Badger Fund of Funds (the “Fund”) is a Limited Partnership formed by the state of Wisconsin to invest in Wisconsin venture capital funds that will in turn invest in Wisconsin based new ventures. The state of Wisconsin has committed $25 million to the Fund with an additional minimum of $5 million to be raised from the private sector. The Fund’s partnership agreement complies with ACT 41 which is the state of Wisconsin legislation that sets forth the terms for the state’s $25 million investment in the Fund.

*Source: PWC Money Tree

Sun Mountain Kegonsa Partnership, LLC (“SMK”) has been selected as the Fund’s investment manager. State Press Release.   KGallagher Story. SMK is a partnership of two venture capital management firms; Kegonsa Capital Partners, LLC and Sun Mountain Capital LLC. The SMK investment philosophy is based on a “Money for Minnows” investment strategy.

For more information on the Badger Fund of Funds investment strategy please see Investment Strategy.

Currently, there are many building blocks in place in Wisconsin to support a successful fund of funds platform. These include: Tier I research universities, a skilled educated workforce and a strong base of technology and intellectual property. Further, existing and emerging industry clusters such as life sciences, IT/technology and cleantech, specifically fresh water technology, are highly concentrated in Wisconsin.

However, a thin capital pool exists for early stage investment opportunities. For example, relative to the size of its population and level of output, Wisconsin accounts for a disproportionately small amount of total venture capital investment in the region.

Thus, the Badger Fund of Funds will help to fill the funding gap for start-up companies that currently exists in Wisconsin and provide investors with an attractive opportunity to back the best new technologies with little competition.