Providing Flexible Capital for Wisconsin's Growth Companies
Valency Fund provides flexible capital solutions designed specifically for Wisconsin's growth-stage businesses. We partner with companies in technology, advanced manufacturing, and agribusiness that are ready to scale sustainably and create lasting economic impact.
Vision
A thriving entrepreneurial ecosystem that catalyzes sustainable growth for Wisconsin businesses.
Mission
Valency Fund enables founders through innovative funding and strategic partnerships, equipping Wisconsin businesses with resources to scale sustainably and create lasting economic impact.
Company Overview
Valency Fund, Inc. is a 501(c)(3) nonprofit growth fund based in Madison, Wisconsin, providing flexible financing to early growth-stage companies in agribusiness, advanced manufacturing, and technology. We offer revenue-based financing, structured exits (e.g., redeemable equity), and supply-chain capital that aligns with sustainable business models rather than exit timelines.
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Laura Strong, PhD
Co-founder & CEO | Investor | Champion for Wisconsin Entrepreneurs
Laura Strong is a strategic leader and investor driving innovation in biotech and venture funding, with over 25 years of entrepreneurial and operational experience in high-growth industries, including biotech, health tech, and venture capital. As Founder and CEO of Valency Fund, she is dedicated to providing flexible capital solutions for growth-stage businesses in Wisconsin to help companies scale sustainably.
Throughout her career, Laura has held key leadership roles in venture-backed and entrepreneurial companies. She served as a strategic advisor for radiopharmaceutical and health technology firms and previously led clinical evidence and validation strategies at Exact Sciences, helping to advance IVD product development. She began her career at Quintessence Biosciences, playing a pivotal role in early-stage drug discovery and clinical trials for novel oncology treatments.
Beyond her executive leadership, Laura is a dedicated mentor and advocate for Wisconsin’s entrepreneurial ecosystem. She mentors founders through MERLIN (Madison Entrepreneurs Resource Learning and Innovation Network) and Creative Destruction Labs and has served as President of the Board for BioForward Wisconsin and StartingBlock Madison. She currently sits on the board of Total Water, a high-purity industrial water systems provider operating across 11 states.
Laura is also an adjunct faculty member in the Masters in Biotechnology program at UW-Madison, where she guides students in integrating scientific and business principles into their thesis projects.
A National Institutes of Health predoctoral fellow, Laura earned her Ph.D. in organic chemistry from the University of Wisconsin–Madison. She is the co-author of 19 publications and co-inventor on 10 issued U.S. patents, demonstrating her deep expertise in scientific innovation and commercialization.
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Ralph Kauten
Co-founder | Board Member | Experienced Leader in Biotechnology, Commercial Strategy & Corporate Governance
Ralph Kauten has been a pioneering leader in biotechnology since 1979, playing instrumental roles at Promega Corporation and founding or leading PanVera Corporation, Mirus Bio, Quintessence Biosciences, and Lucigen Corporation. With deep expertise in vision-setting, commercial strategy, and execution, he has helped scale innovative companies in the life sciences sector.
Beyond biotech, Ralph has served on Boards of Directors and Advisory Boards across healthcare, banking, and manufacturing, bringing a strategic approach to growth and financial oversight. He currently sits on the boards of First Business Bank, BellBrook Labs, and the Nordic Group of Companies.
His career spans academia, finance, and manufacturing, including roles as a Faculty Member at UW-Whitewater, Plant Controller at Heublein, Inc., and Senior Auditor at Grant Thornton, CPAs. Ralph holds an MBA from UW-Madison and a BBA from the University of Iowa.
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Todd Kearney
Board Member | Senior Credit Officer & Economic Development Strategist
Todd Kearney is the Senior Credit Officer at IncredibleBank (IB), overseeing the commercial underwriting process for a $1B+ loan portfolio, including risk assessment, loan approvals, and portfolio analytics. He also represents IB on Madison Development Corporation’s Venture Debt Fund, reinforcing his commitment to fostering innovative financing solutions.
Previously, Todd managed a $100M Bond Fund at United FCS, co-investing with community banks across the Midwest to drive business development. During this time, he also advised a group of local entrepreneurs in establishing an angel fund to support early-stage ventures.
Earlier in his career, Todd served as Director of Business Development at the Wisconsin Department of Commerce, appointed by Governor Tommy Thompson to oversee state economic development funds, including the Wisconsin Technology Development Fund and the Major Economic Development Fund.
A CPA and graduate of UW-Madison, Todd brings a unique blend of financial expertise and economic development experience, making him a valuable asset in providing strategic capital solutions for Wisconsin businesses.
FAQs
What does Valency Fund invest in?
Valency Fund invests $100,000-$500,000 in Wisconsin companies in agribusiness, advanced manufacturing, and technology. We focus on early-growth stage companies with minimum $200,000 annual revenue.
Do I need to give up equity?
Not necessarily. Revenue-based financing requires no equity dilution. Structured exits (e.g., redeemable equity) involve short term equity with founder buyback rights. We can design structures to preserve founder ownership and vision.
What is revenue-based financing?
Revenue-based financing means repayments are tied to monthly revenue until a predetermined multiple of the original capital is repaid. Terms are typically 3-5 years.
How is Valency Fund different from venture capital?
Valency Fund uses terms aligned with revenue growth while venture capital is focused on exit (sale of company) anticipated in 5-7 years. In contrast to traditional equity investment, Valency Fund doesn’t permanently impact the ownership structure. While venture capital is best for deep tech or to hyper-scale growth, Valency Fund is targeted to strategic scaling of existing revenue.
How is Valency Fund different from bank loans?
Valency Fund uses terms aligned with revenue growth while bank loans are designed with fixed repayment schedules. In contrast to banks, Valency Fund doesn’t require a long financial history. While banks are good for predictable, stable growth, Valency Fund is targeted to strategic scaling of existing revenue.
What stage companies does Valency Fund target?
Early-growth companies with $200,000+ annual revenue, strong growth potential (>10%), concrete capital deployment plans, and path to profitability. Must be based in Wisconsin.
How do I apply for Valency Fund financing?
Email hello@valencyfund.com with a brief company overview, revenue over past 12 months, how you'll use growth capital, and why Valency Fund is a fit.
What is the investment process and timeline?
Initial application → Initial call → Full application → Due diligence → Investment committee review → Funding decision → Negotiation and closing.
Is Valency Fund only for Wisconsin companies?
Yes. Valency Fund exclusively serves Wisconsin-based companies as part of our mission to strengthen Wisconsin's entrepreneurial ecosystem.
How does the nonprofit structure work?
As a 501(c)(3), charitable donations become growth capital for Wisconsin companies. Profits from investments are reinvested to serve future Wisconsin entrepreneurs. This creates a self-sustaining funding source across multiple generations.
Valency means strength and capacity in Latin, and in chemistry, it refers to the ability of atoms to bond with other atoms.
This name reflects our mission to catalyze sustainable growth by forging strong connections between founders, partners, and resources. Just as valency in chemistry determines how elements unite to create something greater, Valency Fund exists to equip Wisconsin businesses with the right capital and strategic support to scale and thrive.