At Midwest Wealth Ventures™
We help investors make better decisions by:
• Screening by investors’ interests and expertise
• Performing progressive levels of due diligence
• Applying Planned Innovation tools and protocols to validate critical assumptions
• Ensuring high-quality content-rich investor-ready project proposals and presentations
We reduce investors’ risk by:
• Applying research-based screening criteria known to be highly correlated with success
• Providing ongoing mentoring, guidance and analytical support to company management
• Protecting investors’ interests by monitoring, reporting and ongoing engagement in strategic decision-making
Planned Innovation®, developed by Dr. Bacon from Michigan State University has been in use for over 40 years and has consistently identified winning products and services in vastly differing business segments, business sizes, and industries like IBM, Dow Chemical, Steelcase, Sarns, Inc (IBM), MACtac (Bemin), GRID Publishing, and Toledo Scale.
Applying this time-tested protocol for screening and identifying successful enterprises, Wisconsin River Business Angels delivers superior investment opportunities for its investors, and provides ongoing guidance and mentoring support for its ventures.
The typical Angel Investor’s portfolio
Historically, Angel Investing has been a game of high risk and high returns. Angels employ a portfolio approach to manage risk, spreading their investments across multiple projects.
While the majority of projects fail, lose money, or just breaks even, a small percentage is expected to be wildly successful, yielding the “home runs” necessary to achieve overall, longterm, above market returns.¹
Angel Investor Track Record
Investment results (National studies over 20 years)
- 20% Projects—total loss
- 65% Projects—break even +, –
- 15% Projects—big winners (5-10+X return)
- Long exit times of 5-10 years
- 20% average ROI (20 year average)
Investors can increase rates of return and reduce risk
Our research shows:
Proper due diligence can improve return from 1X to 5X
A Kaufmann Foundation study showed projects undertaken with less than 20 hours of Due Diligence returned an average of 1X, while projects with an average of 40 hours due diligence returned 5X. ²
Planned Innovation™ tools can improve project success rates from 15% to 90%
Planned Innovation (PI), our scientific approach to evaluating investment opportunities, has a 40 year record of success in separating “winners” from “losers”
In a study of 277 research and new business development projects, PI analyses recommended 34.
Of these, 33 (i.e., 97%) projects were implemented and financially successful, generating hundreds of millions of dollars in new sales and profits.³
Continuous engagement can improve return from 1X to 4X
The same study showed that projects in which investors met with the company just 1 to 2 times per year returned an average of 1X, while projects with monthly engagement returned 4X.²
¹ “Startup Pre-Money Valuation: The Keystone to Return on Investment,” Luis Villalobos and William Payne, 2007.
²“Returns to Angels in Groups Report,” Robert Wiltbank, Warren Boeker, January 1, 2007.
³Achieving Planned Innovation. Frank R. Bacon and Thomas W. Butler, The Free Press, 1998.
OUR PORTFOLIO COMPANIES
We are proud to be able to invest in the Upper Midwest and Central Wisconsin Community and forge strong partnerships between investors and business owners.