Mastercraft Ventures raises $6.2m to boost early-stage startups across Wisconsin

Mastercraft Ventures, a recently launched venture capital fund headquartered in Beloit, Wisconsin, has raised $6.2 million in its latest funding round to support early-stage startups across the state. 

Founded in January, the fund aims to fill a critical gap in seed capital investment, focusing on being the ‘first in’ investor for emerging companies. While based in Rock County, just outside Milwaukee, Mastercraft Ventures plans to invest broadly throughout Wisconsin, although with an emphasis on southern regions.

The fund is the eighth venture capital entity supported by the Badger Fund of Funds, a state-backed initiative established in 2013, designed to bolster Wisconsin's startup ecosystem through support for venture capital. When the fund was launched, Badger Fund Managing Director Ken Johnson said in a statement: “With Microsoft investing $3.3 billion dollars in Racine County, now seemed like the ideal time for a Rock County venture fund focused on southern Wisconsin.”

The Badger Fund plays a crucial role by matching up to 40% of the capital Mastercraft invests, a strategy intended to encourage investment in the state's early-stage ventures. This effort is intended to address Wisconsin’s historically limited venture capital resources, especially outside its primary metropolitan hubs.

Mason Cook, Managing Director of Mastercraft Ventures, leads the fund with the backing of an experienced investment committee comprising individuals familiar with launching, scaling, and exiting companies. Cook brings extensive expertise from both venture investing and technology startups, previously serving as president of software company RealityBLU. His deep ties across Wisconsin’s industrial sectors and national investor network are expected to provide significant advantages to Mastercraft’s portfolio companies.

Mastercraft plans to make initial investments of around $500,000. The fund targets a wide array of industries and technologies but is particularly interested in sectors where Wisconsin already has strengths. These include new industries such as artificial intelligence and automation as well as advanced manufacturing, food technology, logistics, healthcare, and agricultural technology. 

Wisconsin has long faced challenges in attracting venture capital compared to its neighbouring states. According to data from the National Venture Capital Association, Wisconsin ranked lowest among its neighbours in venture capital per capita in 2024 and placed 46th nationally in venture capital invested relative to GDP, according to US News. Mastercraft Ventures aims to help change this by providing entrepreneurs with much-needed early-stage financing, helping them bridge the gap between idea and growth.

In addition to its fundraising, Mastercraft Ventures will seek certification as a qualified venture fund through the Wisconsin Economic Development Corporation. This would enable the fund to offer tax advantages to investors who back qualified new business ventures, further incentivising investment in the state's startups.

The broader Wisconsin venture ecosystem has seen complementary developments, including NVNG Investment Advisors’ recent closure of its $50 million Fund I, the largest local fund of funds which supports Wisconsin startups. Early backers of NVNG include notable corporate investors such as Exact Sciences and Johnson Financial Group, underscoring growing institutional interest in nurturing the state’s innovation economy.

These milestones can’t but help enable the state to better compete for entrepreneurial talent and innovation capital both inside Wisconsin and throughout the rest of the Midwest.