Powering Progress: Wisconsin’s Manufacturing and Agritech Surge

Wisconsin has long been recognized as a manufacturing leader in the Midwest. In recent years, the state’s industrial economy has evolved into a nationally significant innovation hub. With manufacturing contributing over $66 billion annually to Wisconsin’s GDP and a rapidly expanding ecosystem in agritech and advanced manufacturing, the opportunities—and capital challenges—are more dynamic than ever.

The Foundation of Strength

Wisconsin ranks among the top states for manufacturing output and is #2 nationally in manufacturing employment concentration, according to the 2024-2025 Wisconsin Manufacturing Report. The state’s industrial base is anchored by global brands such as Rockwell Automation—a leader in industrial automation and digital transformation—and Harley-Davidson anchor the state’s industrial base. The true differentiation lies in the sophistication and adaptability of Wisconsin’s ecosystem.

Recent years have seen a surge in the adoption of Industry 4.0 technologies. Wisconsin manufacturers are integrating AI, IoT, and predictive maintenance systems to drive productivity and efficiency, while startups in the Fox Valley and Milwaukee are leveraging automation and data analytics to optimize supply chains.

The workforce pipeline remains robust. The Wisconsin Technical College System produces thousands of graduates annually with specialized skills in manufacturing, logistics, and agricultural technology—ensuring a steady flow of talent for growth-stage companies. This strong foundation has enabled Wisconsin to lead in emerging sectors as well.

Sector Growth: Agritech and Advanced Manufacturing

Wisconsin’s agricultural legacy is fueling a new generation of innovation. The 2025 Wisconsin Agricultural Outlook Forum highlights the sector’s $116 billion annual impact and the rapid emergence of agritech startups. Companies such as Isomark, Agrograph, and SeedLinked are deploying AI, robotics, and satellite technology to transform farm management and supply chain transparency.

Advanced manufacturing is also experiencing robust growth. Automation and digital transformation are accelerating, with AI adoption among Wisconsin manufacturers up 42% year-over-year. The new Wanek Center of Innovation at Western Technical College will further strengthen the state’s talent and R&D infrastructure.

The Capital Gap: A Structural Challenge

Despite these strengths, Wisconsin’s industrial and agritech companies continue to face persistent barriers to accessing growth capital. Traditional venture funding models—optimized for rapid software scaling and short exit timelines—often fail to align with the realities of capital-intensive, longer-cycle industrial businesses. According to the 2024-2025 Wisconsin Manufacturing Report, financial constraints remain a significant obstacle, particularly for smaller manufacturers seeking to implement new technologies and scale operations. While Wisconsin has recently launched initiatives such as the Wisconsin Investment Fund to boost venture capital availability for startups in manufacturing, agritech, and related sectors, access to substantial growth capital remains a key challenge for many established industrial companies. This underscores the need for alternative, founder-aligned funding structures that better match the growth trajectories of Wisconsin’s industrial businesses.

This disconnect is structural, not a reflection of company quality. Industrial and agritech businesses frequently generate predictable, recurring revenues—making them ideal candidates for revenue-based financing, redeemable equity, and supply chain financing. These alternative structures offer the flexibility and founder alignment that traditional equity often lacks.

Founder-Friendly Capital: The Path Forward

At Valency Fund, we believe capital should match business reality. Our approach is designed for companies building physical products, scaling automation, or commercializing agritech innovations. 

We provide:

• Revenue-Based Financing for companies scaling production with seasonal or contract-based revenue.

• Redeemable Equity that enables founders to access growth capital without sacrificing long-term control.

• Supply Chain Financing to bridge working capital stretches as companies expand into new markets.

This founder-friendly model is critical for sustainable scaling in sectors where infrastructure, talent, and innovation cycles are measured in years, not quarters.

Wisconsin’s Competitive Advantage

The state’s collaborative ecosystem amplifies these advantages. Organizations such as the Wisconsin Manufacturing Extension Partnership, the Wisconsin Economic Development Corporation, and regional incubators provide technical support and market access, while programs like Qualified New Business Venture (QNBV) incentivize investment in high-growth startups.

Wisconsin’s agricultural exports alone reached $4 billion in 2023, and advanced manufacturing continues to drive job creation and productivity gains. The 2025 Economic Outlook underscores the state’s resilience and growth trajectory across industrial sectors.

Looking Ahead

Wisconsin’s industrial, agritech, and advanced manufacturing companies are among the most fundable and sustainable businesses in the country. With the right capital partners, these companies can accelerate growth, drive innovation, and build generational value.

Are you building the next generation of Wisconsin’s industrial economy?

Connect with Valency Fund to explore how flexible, founder-aligned capital can support your scaling journey.

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This blog is provided for informational purposes and does not constitute investment advice. For more information about Valency Fund and our investment approach, please contact us directly.

From Founder to Funder: Why I Started Valency Fund for Wisconsin’s Entrepreneurs

After being actively involved in the Wisconsin startup community for over 25 years, I've seen firsthand the unique challenges—and opportunities—that come with entrepreneurship here. My journey from biotech founder to funder has been a path shaped by four key themes that guide our mission at Valency Fund today: learning, connecting, mentoring, and building.

Learning By Doing

My entrepreneurial education began in Wisconsin's biotech sector at a time when we were finding our footing. After getting my PhD in Organic Chemistry, I was a co-founder of a pharmaceutical biotech company. We raised millions of dollars in equity to take a cancer drug from benchtop through a Phase 1 clinical trial in patients, always with a plan to sell the company to a large pharma company. It was a classic venture capital opportunity - it works or it doesn’t. If it had, it would have been a big exit. I’ll dive into that tale in future posts. 

During the years that followed, I’ve been involved in a variety of early stage companies that develop and sell products. Diving into the financials and reviewing so many business models sparked a question for me: How many companies in Wisconsin would be profitable and scale if our funding model wasn't designed to reward exponential growth?

Connecting the Dots

As I continued to work with and mentor biotech and health tech companies and become more involved with organizations like BioForward and StartingBlock Madison, I kept encountering the same story from different founders: "We have strong growth potential and a clear path to profitability—but we don't fit the traditional funding mold of a 10x exit."

A pattern emerged. Entrepreneurs with viable businesses were unable to secure the capital they needed to grow—not because of poor performance, but because they weren’t chasing “hockey stick” growth. Many of the founders confirmed what I was thinking - that what is best for the customer and sustainable company growth was not always aligned with aggressive financial objectives.

Wisconsin has a rich tradition of building sustainable, profitable companies that create tremendous value over time. But the disconnect was clear: our funding ecosystem isn’t designed to support them.

Mentoring the Next Generation

One of my greatest joys has been mentoring founders through programs like MERLIN and Creative Destruction Lab. I’ve worked with entrepreneurs across industries who share a commitment to building responsible, lasting businesses right here in Wisconsin.

These mentoring relationships offered more than inspiration—they offered data. Time and again, it became clear: without more flexible  capital options, too many promising companies were being held back. Some were stagnating. Others were disappearing entirely.

Building a Better Solution

As a scientist, I’m trained to analyze problems and build creative solutions. Standing by and watching this problem persist was challenging. Over and over again, founders with real businesses—strong teams, loyal customers, clear paths to profitability—were stuck because the funding didn’t fit. I felt there had to be a better way and as an entrepreneur and a builder, I had to figure it out.

Through extensive research and conversations with founders, investors, and economic development leaders across the state, I identified a clear opportunity in Wisconsin’s capital ecosystem: flexible funding options for growth-stage companies with strong fundamentals, sustainable growth, and a clear path to value creation—even if, especially if, they don’t fit the “unicorn” mold.

The concept for Valency Fund emerged from this research—a funding vehicle specifically designed to support Wisconsin’s promising businesses that traditional capital sources weren’t serving.

Establishing Founder Friendly Funding in Wisconsin

In chemistry, "valency" refers to the combining power of an element—its capacity to form bonds with other elements. That's what we do at Valency Fund: strengthen the bonds between Wisconsin's entrepreneurs and the capital they need to grow, while connecting the dots across our ecosystem.

By continuously learning, connecting, mentoring, and building, Valency Fund provides not just capital, but strategic partnerships to help Wisconsin businesses scale sustainably.

Our vision is simple but powerful: a Wisconsin where entrepreneurial success isn’t defined by a single growth model or funding pathway, but by the lasting value created for customers, employees, communities, and stakeholders.

If you’re a Wisconsin founder building a strong, sustainable business—or an ecosystem partner passionate about new funding approaches—I’d love to connect. Together, we can strengthen  a funding landscape that fully taps into Wisconsin’s entrepreneurial spirit.

Follow Valency Fund on LinkedIn for insights on non-dilutive funding models and updates on our work: @ValencyFund

Filling in the Funding Landscape: Valency Fund

In Wisconsin, companies with strong—but not necessarily exponential—growth potential often struggle to secure funding due to a challenging financing landscape. Traditional venture capital seeks business models with hockey stick growth, while bank loans have terms that aren’t flexible enough to fully leverage the capital. The result? Too many promising companies are left stuck—without the capital they need to grow sustainably.

That’s why we’re excited to introduce Valency Fund—a new initiative designed to fill in the funding landscape with flexible, non-traditional capital solutions tailored for Wisconsin’s entrepreneurs.

Our Mission & Vision

At Valency Fund, our mission is to unlock growth for Wisconsin-based companies by providing capital solutions that work with, not against, the realities of scaling a business. We believe that successful businesses don’t all follow the same trajectory, and funding should reflect that.

Our vision is a thriving entrepreneurial ecosystem where innovative, capital-efficient companies can scale sustainably—without having to compromise their ownership, long-term goals, or business model to fit traditional financing structures.

How It Works

We believe that capital should support a company’s growth—not dictate its trajectory. We focus on sustainable, capital-efficient growth by offering:

• Revenue-Based Financing – Flexible funding that scales with your business, without diluting ownership.

• Redeemable Equity – Founder-friendly investment options that provide capital while maintaining long-term flexibility.

• Strategic Partnerships – Connecting founders with financial and ecosystem resources to help them succeed.

Who We Support

Valency Fund is built for Wisconsin-based, growth-stage companies in technology, manufacturing, and agribusiness. We seek founders who:

• Have a proven go-to-market strategy

• Generate predictable revenue from a diverse customer base

• Need flexible capital to scale sustainably

Let’s Connect!

We are actively engaging with founders, funders, and ecosystem partners who share our vision for a thriving entrepreneurial community in Wisconsin.

• If you’re a founder: Join our waitlist here.

• If you’re an equity investor, bank, entrepreneurship support organization, or another part of the startup ecosystem: Let’s talk about how we can collaborate to expand access to capital. Contact us here.

We believe that Wisconsin’s entrepreneurs deserve funding options that match their ambitions. Let’s build something great together!

Follow us on LinkedIn for updates: @ValencyFund here