Fundraising Q2, 2025: Wisconsin

Wisconsin's startup ecosystem bucked national trends in the second quarter of 2025, raising a total of $77.15 million during  the period between April and June. This figure marks a 49% increase over the preceding quarter’s $51.9 million, highlighting positive momentum within the state’s entrepreneurial landscape. Additionally, when viewed against the same period last year, the numbers reveal an even better picture with an 13% increase from the $68.5 million raised in Q2 of 2024.

The fundraising activity in Wisconsin paints a picture of cautious optimism amid a challenging national environment. While the state experienced growth quarter on quarter, the broader U.S. startup ecosystem faced a significant downturn in Q2 2025. National data show a sharp 43% drop in fundraising compared to Q1, underscoring the difficulties many startups are grappling with. Notably, California and Massachusetts - two of the nation’s leading innovation hubs - saw even steeper declines of 57% and 21%, respectively according to data from Dealroom. This context highlights Wisconsin’s comparatively steady performance as a bright spot amid a tough fundraising climate.

Two marquee deals dominated Wisconsin’s funding rounds in Q2. Leading the pack was Realta Fusion, an energy startup which secured $36 million in investment in May. Following closely was EnsoData, a healthcare enterprise software startup, which raised $20 million in June. These two deals alone accounted for the majority of the quarter’s total capital influx, signaling investor confidence in these sectors and the potential for strong growth from these businesses.

Looking at long-term trends, energy stands out as a particularly strong category within Wisconsin’s startup scene. According to data we’ve compiled for a future article (stay tuned peeps), over the past ten years, the energy sector is the third most funded category in the state, capturing 13% of total funding and representing 8% of all deal volume. This positions Wisconsin as a meaningful contributor to energy innovation, a sector that continues to attract interest amid global shifts in data center needs and clean technology adoption.

Additionally, with new funding being made available across the state and educational institutions placing increasing efforts into upskilling future generations, the ecosystem is evolving to try and tackle future challenges head on.  

Despite the positive signs for Wisconsin, the fundraising environment remains challenging. The national drop in venture capital activity points to a broader recalibration in investment strategies, influenced by macroeconomic uncertainties and market volatility. Startups nationwide are facing more scrutiny from investors, who have prioritized sustainable growth over rapid expansion in a more cautious fundraising atmosphere.

In this context, the $77 million raised in Wisconsin during Q2 serves as a barometer for the future of the entrepreneurial ecosystem in the state. While not immune to larger market pressures, Wisconsin is holding its ground, showing year-over-year resilience even as fundraising volumes contract nationally. 

As we move into the latter stages of 2025, we’ll be watching the trajectory of Wisconsin’s startup fundraising closely. If current trends continue, this Midwest hub may well become an increasingly attractive destination. For now, the second quarter’s figures offer both a snapshot of the challenges startups face and a testament to the tenacity of Wisconsin’s entrepreneurial spirit.