EatStreet2

A bar, kitchen, game room and eighth-floor outdoor terraces are among the amenities at EatStreet's new offices at 316 W. Washington Ave.

EATSTREET

If you were an entrepreneur in the Madison area, 2016 was probably a good year for you.

At least, that’s what the latest figures would imply.

Madison area startups added 150 full-time and 135 part-time jobs in 2016.

That means the young companies now account for at least 825 full-time and 300 part-time employees — or a total of 1,125 people — according to the replies of 58 companies to a poll by the Capital Entrepreneurs mentorship group.

The startups raised a combined $114 million in funding, up 71 percent over the $66.5 million local startups drew in 2015 and $44 million in 2014. That includes 11 businesses — such as mobile restaurant ordering service EatStreet, asthma sensor company Propeller Health and weather data provider Understory — that each raised $4 million or more.

“In 2016, Madison startups continued to be an engine of economic growth,” said the Capital Entrepreneurs report, released Friday.

Not only did the numbers of new companies jump, so did the space they occupied.

The newly remodeled, former AT&T building just off the Capitol Square at 316 W. Washington Ave., known as the 316 Building, became the newest tech hub with companies such as EatStreet, Understory and apartment rental facilitator Abodo among those that moved into the 10-story building last year.

Meanwhile, the planned StartingBlock Madison entepreneurial hub landed the final piece of its $3 million capital campaign, co-working groups Horizon, Madworks and 100State all expanded and maker space Sector67 began fundraising for a bigger facility.

“There has been a large amount of entrepreneurial ecosystem infrastructure that has been established over the past few years between work spaces, accelerators and support resources. It provides new entrepreneurs with better access to resources that hopefully will increase their chances of success,” said Forrest Woolworth, a co-founder of Capital Entrepreneurs and chief operating officer of mobile game development company PerBlue.

Woolworth said some of the more established startups raised large amounts of money and may be nearing an exit — which means they could be acquired or perhaps sell their stock publicly. There were also many companies raising their first outside investments, which means potentially strong startups are still coming forward.

Health technology startups, in particular, seem to be among those on the rise, Woolworth said.

100State fetes

new location

100State celebrated its new offices Wednesday evening with “grand opening” festivities. About 100 people attended.

100State, which calls itself “Wisconsin’s largest co-working community,” moved on Jan. 2 to offices on the sixth floor of the 316 Building from its previous location at 30 W. Mifflin St.

Launched in June 2013, 100State has nearly 300 members. It also will welcome a new generation of potential entrepreneurs. Maydm, which teaches computer coding to third- through 12th-graders, and CEOs of Tomorrow, which encourages social entrepreneurship among teens, will hold programs at 100State.

In another new development, 100State will designate an office for startups that emerge from the Latino Chamber of Commerce of Dane County’s new business incubator.

“We are partners with the Latino Chamber,” said 100State executive director Gregory St. Fort. “The goal of our partnership is to create a pipeline for Latino entrepreneurs and access to more resources.”

100State also added two board members, for a total of seven. The new additions are Rachel Neill, founder of Carex Consulting Group, and Drew Coursin, an attorney with Neider & Boucher.

GrocerKey attracts investors

GrocerKey, a Madison startup that sets up and manages online ordering for grocery stores, has drawn $700,000 from several local investors, including Clint Woodman, vice president of Woodman’s Markets, and serial entrepreneur Mark Bakken, founder of the HealthX Ventures fund.

The money will help GrocerKey expand the availability of ShopWoodmans.com from the current two locations to all of the company’s 16 grocery stores in the next year and a half, GrocerKey founder and CEO Jeremy Neren said.

The first two stores are getting as many as 800 online orders a week, and the average e-commerce grocery order is six times larger than the average bill in the store itself, Neren said.

“Additionally, we have 11 other retailers signed that are either in pilot (stage) or in the implementation process,” he said. The company also is developing product upgrades.

Neren said GrocerKey has more than 50 employees, including about 30 in Madison. He said the company’s goal is to raise a total of $2 million in equity financing and up to $1 million in loans.

Contact Judy Newman at jdnewman@madison.com with tips and story suggestions.

0
0
0
0
0

Judy Newman is a business reporter for the Wisconsin State Journal.