UW–Madison, American Family Insurance: Seeding tech growth in Wisconsin’s fertile ground

Why would a global program for tech startups tackling risk decide to make Wisconsin its home? And how does a partnership with a Fortune 300 insurance company help support success for the startups?

When the Creative Destruction Lab (CDL) – an innovative nonprofit that has created programs in support of early stage startups worldwide – decided to partner with the University of Wisconsin–Madison and Madison-headquartered American Family Insurance for only its second U.S. location, it gave a nod to the ever-growing recognition that the region is fast becoming a hub for technology and innovation.

CDL is not alone in this belief. In December 2019, two national think-tanks, the Brookings Institute and Information Technology and Innovation Foundation, released a report putting the Madison area at the top of the list of regions positioned to be the next national tech hub. This thinking reflects what many in the area already know: The education level, business climate, and rich environment for innovation and scientific discovery make the region fertile ground to seed the next wave of entrepreneurs and tech growth.

Founded at the University of Toronto’s Rotman School of Management, CDL’s objectives-based entrepreneurship program was built to include active involvement of university students and faculty. This will support a streamlined pathway for research and discoveries at UW–Madison to more quickly find its way into industry. In addition, students will have access to an exciting experiential learning lab geared towards educating digitally aware students who will quickly become the business leaders of tomorrow.

Not including Wisconsin, CDL currently has eight locations. They are in Canada, England, and France. The only other U.S. program is in Atlanta, Georgia, which is launching at the same time as Wisconsin.

Students will benefit

“Students from a variety of academic disciplines will benefit from the exchange of ideas and interactions with entrepreneurs and mentors, while generating startup ideas about how digital technologies can spur unrealized opportunities in risk management,” said Vallabh “Samba” Sambamurthy, Albert O. Nicholas Dean of the Wisconsin School of Business. “In the long run, this will be another way our public university helps to create jobs and grow the economy.”

Region poised for tech growth

CDL’s decision to place its ninth startup program in Wisconsin was inspired by the revelation that while early-stage venture capital was concentrated in California and a few other cities, scientific breakthroughs that seed companies have a much broader geographic distribution. Discoveries and innovations in Madison, Milwaukee, and even as far as Minneapolis, make our region ripe for accelerated growth and venture investment in tech.

Understanding that Madison is home to not just a top-ranked university but also a highly innovative national insurance company, American Family Insurance, made Wisconsin an ideal location to launch its newest stream, CDL Risk. The program will nurture high-tech entrepreneurs in the growing field of risk management. CDL Risk will leverage the expertise at  UW–Madison and American Family, focusing on emerging high-tech software technologies related to identifying, assessing, preventing, mitigating, and transferring risk. The program is slated to start in November and will be entirely virtual for the time being.

“The importance of supporting entrepreneurship in tech has never been greater,” says Tom Erickson, founding director of the UW–Madison School of Computer, Data & Information Sciences. “The tech industry continues to drive economic growth around the globe, and we have an opportunity to put Wisconsin in the center of that.”

American Family partnership a win-win

As a founding partner of CDL Risk, American Family and its venture capital firm American Family Ventures is helping identify and select startups and will provide mentors and other resources during the nine-month program. This support is part of the company’s ongoing partnership with UW–Madison, which includes The American Family Insurance Data Science institute and endowed chair of the institute among other elements.

“Now, more than ever, we can see why entrepreneurship and advancements in data science and technology applied to risk management is critical to the insurance industry and society in general,” said Bill Westrate, American Family Insurance president. “Our involvement with these innovative startups in the very early stages will provide invaluable insights for us, and established resources to help them succeed.”

This partnership with American Family, access to focused mentorship from experienced entrepreneurs who have founded, led, and sold significant tech companies, and an emphasis on objective-setting to sharpen objectives, prioritize time and resources sets CDL Risk and CDL’s other programs apart from a typical startup accelerator.

With advances in data collection, analysis, and artificial intelligence, companies and individuals are better able to assess and respond to risk leading to new products, innovations, and cost savings. The ripple effect could lead to the development of many new companies and ventures focusing on anything from the use of satellites to detect wildfires, to new technology to identify potential damage to homes to improving traffic patterns to reduce accidents.

Furthers UW entrepreneurial innovation

“UW–Madison is a great choice for this project,” says Professor Joan Schmit, who holds the endowed American Family Insurance Distinguished Chair in Risk Management and Insurance at the Wisconsin School of Business. “To be able to support entrepreneurial innovation and economic growth in an area where we have a deep bench of expertise is a natural extension of our work.”

“CDL has developed a proven process for helping companies cut through distractions and focus on what’s most important, with a global network working toward our mission to accelerate the commercialization of science for the betterment of humankind,” says Sonia Sennik, Executive Director of the Creative Destruction Lab. “We are thrilled to both welcome UW–Madison to the CDL family as our newest site, CDL-Wisconsin, and to announce the launch of CDL Risk in partnership with American Family Insurance.”

CDL Risk continues seeking startup candidates and businesses and individuals willing to serve as mentors. More is available at CDL Risk.

Applications for CDL Risk at CDL-Wisconsin are now open at creativedestructionlab.com/apply. Selected ventures will begin the nine-month CDL program in October 2020. To learn more about CDL Risk, please contact risk@creativedestructionlab.com.

Read answers to frequently-asked questions about CDL and the new partnership here.

ABOUT UW–MADISON

The University of Wisconsin–Madison is a public, land-grant institution that offers a complete spectrum of studies through 13 schools and colleges. With more than 43,000 students from every U.S. state and 121 countries, UW–Madison is the flagship campus of Wisconsin’s state university system. UW–Madison is a formidable research engine, ranking eighth among U.S. universities as measured by dollars spent on research. Faculty, staff, and students are motivated by a tradition known as the Wisconsin Idea that the boundaries of the university are the boundaries of the state and beyond. The Wisconsin School of Business (WSB) offers the #1-ranked under graduate risk management and insurance program by U.S. News & World Report, and the Risk and Insurance department at the Wisconsin School of Business is recognized as a Global Center of Insurance Excellence by the International Insurance Society. The School of Computing, Data and Information Sciences (CDIS), housed within the UW–Madison College of Letters & Science, and home to top-ranked departments of Computer Sciences, Statistics, and the Information School, was founded in 2019 to serve the needs of our ever-changing society. CDIS departments have been the source of many successful tech companies in our region and nationally.

ABOUT AMERICAN FAMILY INSURANCE GROUP

Based in Madison, Wisconsin, American Family Insurance has been serving customers since 1927. The company inspires, protects and restores dreams through insurance products, exceptional service from agency owners and employees, community investment, and creative partnerships to address societal challenges. American Family acts on the belief in diversity and inclusion by constantly evolving to meet customer needs and preferences. American Family Insurance group is the nation’s 13th-largest property/casualty insurance group, ranking No. 254 on the Fortune 500 list. The group sells American Family-brand products, primarily through exclusive agency owners in 19 states. The American Family Insurance group also includes CONNECT, powered by American Family Insurance, The General, Homesite, and Main Street America. Across these companies the group has more than 13,500 employees nationwide.

ABOUT AMERICAN FAMILY VENTURES

American Family Ventures is a venture capital firm focused on insurance innovation. Founded in 2013 as the direct venture capital arm of American Family Insurance, AFV invests in early-stage startups that are redefining the future of the insurance industry. AFV aims to help create category-leading companies through minority equity positions, active partnership and collaboration, an extensive Insurtech network, and a comprehensive platform of value-add programs. For more information, visit amfamventures.com.

ABOUT THE CREATIVE DESTRUCTION LAB (CDL)

CDL is a nonprofit organization that delivers an objectives-based program for massively scalable, seed-stage, science- and technology-based companies. Its nine-month program allows founders to learn from experienced entrepreneurs, increasing their likelihood of success. Founded in 2012 by Professor Ajay Agrawal at the University of Toronto’s Rotman School of Management, the program has expanded to eight sites across four countries: Oxford (Saïd Business School, University of Oxford), Paris (HEC Paris), Atlanta (Scheller College of Business, Georgia Institute of Technology), Vancouver (Sauder School of Business, University of British Columbia), Montreal (HEC Montréal), Calgary (Haskayne School of Business, University of Calgary), and Halifax (Rowe School of Business, Dalhousie University).

Wisconsin Bank & Trust’s Commercial Card Nationally Ranked Fifth Year in a Row

CONTACT:
Shawn Kesler
Regional Marketing Officer, VP 414.394.5946
SKesler@htlf.com

Brent Giles President and CEO 608.203.1224
BGiles@wisconsinbankandtrust.com

WISCONSIN BANK & TRUST’S COMMERCIAL CARD NATIONALLY RANKED FIFTH YEAR IN A ROW

JUNE 29, 2020 — MADISON, WI – Wisconsin Bank & Trust, a member of Heartland Financial USA, Inc. (NASDAQ: HTLF), announced today that for the fifth year in a row it has been ranked among the top U.S. commercial credit card issuers for purchase volume growth.

The Nilson Report ranked Heartland’s commercial credit card program among the top 35 Purchasing Card programs, with over $453 million in purchasing card volume in 2019, a growth of 53.9 percent over the previous year. The Nilson Report is a leading publication covering payment systems worldwide for 50 years. Earlier this year, Heartland Financial USA, Inc. was also named by Forbes as the 40th best bank in America.

“Today, more than ever, we understand the importance for our clients to manage cash flow, maintain relationships with vendors, and negotiate favorable terms. It is an honor to be recognized as a leader in the commercial credit card space as we provide solutions that meet the needs of our clients, and the marketplace,” said Brent Giles, President and CEO. “We’re grateful to our clients for choosing Wisconsin Bank & Trust as their partner, and we remain committed to innovating solutions for today’s dynamic environment.”

Even before the pandemic, the Association of Financial Professionals 2019 Electronic Payments Survey shared that 47 percent of companies surveyed said “Cost Savings” is a top benefit of sending electronic payments, and 53 percent of companies surveyed said “Speed of Settlement” is a top benefit of receiving electronic payments. With this method of payment rapidly becoming more common, Wisconsin Bank and Trust is helping clients reduce operating costs, increase fraud protection and provide more streamlined payments processes.

About Wisconsin Bank & Trust

Wisconsin Bank & Trust (WBT), a subsidiary of Heartland Financial USA, Inc., (NASDAQ: HTLF), is a business-focused community bank with assets of more than $1 billion. With fifteen banking centers, Wisconsin Bank & Trust serves customers in the Madison, Milwaukee, Green Bay, Sheboygan, Monroe and southwest areas of Wisconsin. WBT offers a wide range of personal and business banking, private client and mortgage lending services. For more information, visit www.wisconsinbankandtrust.com or call 608.203.1214. Wisconsin Bank & Trust is a member of the FDIC and an Equal Housing Lender.

About Heartland Financial USA, Inc.

Heartland Financial USA, Inc. is a diversified financial services company with assets of

$13.2 billion. The company provides banking, mortgage, private client, investment and insurance services to individuals and businesses. Heartland currently has 114 banking locations serving 83 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, Missouri, Texas and California. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com.

# # #

Central Storage Leads Again in Commercial Solar

Media Contact:
Kelly Williams
(608) 333-6651
kscocos@csw-wi.com

Central Storage Leads Again in Commercial Solar

MADISON, Wis. – A new 653 kWdc solar energy installation at Central Storage & Warehouse’s Caledonia, Wisconsin location now makes the refrigerated warehouse company the largest privately-owned host of commercial rooftop solar power generation in the state. At its three southern Wisconsin facilities, Central Storage now utilizes more than 2,140 kWdc of solar. The only business with more installed rooftop capacity is publicly-owned Target.   

The family-owned business has consistently championed sustainability, and has found rooftop solar to be profoundly impactful in recent years. The company’s first solar installation, a 741 kWdc system atop its Madison warehouse, was the largest installation in the state at the time of completion in 2016. The business case validated by that original system led to a subsequent 746 kWdc installation at Central Storage’s Pleasant Prairie facility in 2018. The Caledonia facility is the company’s third installation, and its leadership team expects further solar expansion in coming years.

“Solar has become a significant part of our overall business strategy. We not only want to increase our environmental sustainability, but we also want to demonstrate effective cost controls to our customers and our employees. These investments support our values and are helping us mitigate risk for the future,” said John Winegarden, CEO of Central Storage & Warehouse.

With the addition of the latest installation, the use of solar-generated power across all of its locations is expected to save Central Storage more than $13.5 million in electricity costs over the next thirty years.

RENEW Wisconsin, a renewable energy advocacy agency, has tracked commercial adoption of solar statewide. Heather Allen, Interim Executive Director of RENEW Wisconsin said, “Solar is an incredible opportunity for businesses right now. In a time of economic uncertainty, investing in renewable energy helps protect a business from future energy costs and can help keep operating budgets affordable. It’s really exciting to see renewable energy leaders like Central Storage & Warehouse stepping up to the plate continuously. It’s an investment that not only helps their company, but it also contributes to our state’s renewable energy goals. That has an impact for all of us.”

CSW worked with SunPeak, a Madison-based commercial solar developer and construction company on all three of its solar projects. “Many businesses with heavy power loads during the day are good candidates for solar. We see an especially strong match with refrigeration businesses like Central Storage because their energy needs are especially high in the summer, which is exactly when solar production is greatest,” said Mike Riverun, SunPeak’s Director of Project Development. “Before solar, Central Storage was shifting its power loads to off-peak periods to take advantage of lower electricity rates. Now they can utilize more power during peak generation periods without incurring higher costs.”

Riverun also echoed sentiments by Allen, “The economics of solar are very favorable right now, especially with federal and state incentives still available. There are some very powerful tools to help businesses take advantage of solar. With a lot of uncertainty in the business community right now, we are seeing many industries thinking more broadly on how to cut costs.”

CSW’s investment in solar supports other energy efficiency initiatives, including a full transition to LED lighting across all facilities and the implementation of refrigeration controls to reduce overall energy use.

“Every little bit helps. We’ve been in business for seventy-three years and we’re extremely grateful for that. We’re humbled by the support we’ve received from our customers, our community and our employees. We feel like this is a way we can give back to everyone,” said Jack Williams, VP of Operations for Central Storage.

###

Central Storage & Warehouse is a family-owned provider of temperature-controlled warehousing for food manufacturers and distributors. Established in 1947 and based in Madison, WI, the company has grown to over 20 million cubic feet of storage across six sites in four cities. CSW was a 2017 Wisconsin Family Business of the Year award winner, and the judges found notable the company’s embrace of new technologies and commitment to employees, the community, and the environment. CSW’s latest investment in clean energy once again embodies these values. For more information, please visit www.csw-wi.com.

SunPeak is a full-service solar photovoltaic developer specializing in commercial and industrial applications. Based in Madison, Wisconsin, the company works across the nation helping businesses, health care facilities, municipalities and educational institutions reduce electrical costs and enhance sustainability efforts using solar energy. SunPeak uses a value-added, comprehensive approach with its customers, partnering with them from the earliest stages to educate, assess, design, construct and ultimately maintain a solar installation through the expected thirty-year life of the system. For more information, please visit www.sunpeakpower.com.

M3 Becomes First Wisconsin-based Member of TechAssure

MADISON, WI – M3 Insurance has been named a new member of TechAssure, the international nonprofit association of insurance and risk management experts for technology-related risks, effective immediately.

“A partnership with TechAssure is a natural fit for M3,” said Brad Reitzner, Vice President of Sales – Property & Casualty. “TechAssure allows us to network and share best practices with the leading insurance brokers in sectors like technology, life science, cyber, etc. We look forward to supporting the network’s mission of delivering best-in-class insurance advice and program design to the area’s most innovative companies.”

TechAssure is an invitation-only organization, comprised of the top performing brokers in the tech-risk space. This partnership allows M3 to tap into a global network of insurance brokers that specialize in the technology and life science sectors, as well as cyber risks, and gain access to an unparalleled body of intellectual capital and resources that no other broker can bring.

“Madison, WI has been emerging as one of the fastest-growing tech hubs in the country over the past few years,” said TechAssure Executive Director, Garrett Droege. “M3 has one of the best reputations in the industry and has the talent and resources to be the brokerage of choice for innovative firms in and around the Silicon Prairie.”

_________________

ABOUT M3

M3 is a top 50 insurance broker and risk management firm in America. They are leaders in the products they represent and the industries they serve. M3’s people are an extension of your team, providing world-class resources to help you manage risk, purchase insurance, and provide employee benefits. And their focus on community builds better places to live and work.

ABOUT TECHASSURE

TechAssure is a unique consortium of risk management experts serving innovative industries, such as technology, telecommunications, life sciences, clean tech, as well as the venture capital and private equity firms that fund them.   Comprised of over 30 specialist firms located in strategic locations across the world, TechAssure members collectively serve over 5,000 tech-industry clients and represent over $10 Billion in premium volume.    The association also produces a proprietary annual benchmarking report for the industries it serves. TechAssure is currently celebrating its 20^th year.

MDC Raises More Than $6 Million for Venture Debt Fund

(MADISON, Wis.)—Madison Development Corporation’s (MDC’s) Venture Debt Fund, which provides financing for emerging growth companies in Dane County has successfully raised over $6.2 million for its sixth fund.

Since 2004, the MDC Venture Debt Fund has provided venture debt loans to over 60 Dane County companies that have created more than 1,400 high quality jobs in Dane County.

“Our goal is to keep high growth companies here in Dane County so they can create quality jobs that keep talent here in Wisconsin” said Lorrie Heinemann, Madison Development Corporation President & CEO and Venture Debt Fund Co-Manager.  “Our Venture Debt Fund continues to be a resource for many local companies when growth capital is critical.”

The Fund’s participants include MGE, Capitol Bank, Monona Bank, State Bank of Cross Plains, City of Fitchburg, First Business Bank, Middleton Area Development Corporation, Settlers Bank, Town Bank, Starion Bank, Bank of Sun Prairie, McFarland State Bank, Oak Bank, Old National Bank, Incredible Bank, Park Bank and MDC.

Companies that have received funding include TomoTherapy, Phoenix Nuclear, PerBlue Entertainment, EnsoData, Stemina Biomarker, Digsite and GrocerKey.

The MDC Venture Debt Fund typically provides financing for companies who reached revenue stage and have received an angel or seed round of funding. The venture loans are nondilutive to equity shareholders which allows companies to access capital at a predictable cost while maintaining ownership and control.

For more information about the MDC Venture Debt Fund program, visit https://www.mdcorp.org/venture-financing.

About Madison Development Corporation

Madison Development Corporation is a non-profit organization that owns and manages 305 affordable housing units in the Madison area and provides financing for hard-to-finance businesses in Dane County. Since 1977, MDC has provided loans to more than 450 businesses totaling over $35 million, helping to create over 5,000 quality jobs in Dane County.