The Opportunity
A $20M Innovation Hub at UW-Madison Research Park
- Growing $11B AgTech market- Rising demand for AI research facilities
- Increasing focus on sustainable agriculture
- Strong regional talent pool
The Problem
Agriculture faces critical challenges:
- Labor shortages
- Climate change impacts
- Resource constraints
- Technology integration gaps
- Research facility shortage
Our Solution
Madison Technology Orchard: A Triple-Impact Innovation Center
1. AI Research Facility
- 15,000 sq ft computing center
- Membership-based access
- Training facilities
- Corporate partnership opportunities
2. Smart Greenhouse Complex
- 10,000 sq ft advanced growing space
- Vertical farming systems
- AgTech testing ground
- Research partnerships
3. Sustainable Energy Integration
- 500kW solar array
- 1MWh battery storage
- Smart grid technology
- Energy cost reduction
Market Opportunity
AI Market:
- $407B global AI market by 2027
- 38% CAGR in AI infrastructure
- High demand for AI research space
AgTech Market:
- $11B market size
- 12.1% CAGR
- Strong Midwest presence
Controlled Environment Agriculture:
- $7.2B market by 2025
- 22.5% CAGR
- Rising urban farming demand
Competitive Advantage
1. Strategic Location
- UW-Madison proximity
- Research Park ecosystem
- Agricultural state heritage
- Strong tech workforce
2. Unique Integration
- AI + Agriculture synergy
- Sustainable energy backbone
- Multi-revenue streams
- Scalable model
3. Strong Partnerships
- University collaboration
- Corporate relationships
- Research institutions
- Government agencies
Financial Projections
Investment Required: $20M
Revenue Streams:
1. AI Lab Memberships: $1.5M/year
2. Agricultural Operations: $800K/year
3. Energy Services: $200K/year
4. Research & Grants: $1M/year
Total Annual Revenue: $3.5M
Net Annual Revenue: $1.7M
Key Metrics:
- Payback Period: 11.8 years
- 10-year NPV: $4.2M
- IRR (10-year): 9.8%
- Job Creation: 50+ direct
Use of Funds
$20M Allocation:
1. Main Facility: $8M
- Construction
- Interior buildout
2. Technology: $5M
- Computing infrastructure
- Network systems
- Security
3. Energy Systems: $2M
- Solar array
- Battery storage
- Integration
4. Greenhouse Complex: $3M
- Structure
- Growing systems
5. Soft Costs: $2M
- Design
- Engineering
- Management
Growth Strategy
Phase 1: Launch (Year 1)
- Facility construction
- Initial member acquisition
- Basic operations establishment
Phase 2: Growth (Years 2-3)
- Membership expansion
- Research program development
- Agricultural production scaling
Phase 3: Expansion (Years 4-5)
- Additional greenhouse space
- Computing capacity increase
- New program development
Team
[Note: To be customized based on actual team members]
- Executive Director
- Technical Director
- Agricultural Operations Lead
- Business Development
- Research Coordinator
Advisory Board
[Note: Proposed structure]
- UW-Madison Faculty
- Industry Leaders
- Agricultural Experts
- Tech Entrepreneurs
- Sustainability Specialists
Investment Terms
Seeking: $20M
Structure Options:
1. Equity Investment
- Private placement
- Limited partnership units
2. Debt Financing
- Green bonds
- Revenue-based financing
3. Hybrid Structure
- Convertible notes
- Profit sharing
Risk Mitigation
1. Market Risk
- Diverse revenue streams
- Phased implementation
- Flexible space usage
2. Operational Risk
- Experienced management
- Strong partnerships
- Conservative projections
3. Technology Risk
- Proven systems
- Modular approach
- Regular updates
Timeline
2025
- Q2: Initial funding secured
- Q3: Design completion
- Q4: Permits obtained
2026
- Q1: Construction start
- Q3: Facility completion
- Q4: Operations launch
The Ask
Seeking $20M Investment
- Clear path to profitability
- Multiple revenue streams
- Strong market position
- Experienced team
- Scalable model
- Social impact
Contact Information
Bryon Gebhard - Bryon@windfallsecurity.com
Madison Technology Orchard
Madison, WI
Appendix (ask for further information)
- Detailed financial projections
- Market research data
- Letters of intent
- Partnership agreements
- Technical specifications
- Management bios
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This presentation contains forward-looking statements and projections. Actual results may vary.
1. Potential Funding Sources:
- Wisconsin-based venture capital firms focused on AgTech/sustainability
- USDA grants for agricultural innovation
- Department of Energy clean energy grants
- State of Wisconsin economic development funds
- UW-Madison affiliated investors/alumni networks
- Corporate partners (particularly ag/tech companies with Madison presence)
- Clean energy investment funds
2. Strong Selling Points:
- Multiple revenue streams (AI, agriculture, energy)
- Strategic location in URP2 with UW-Madison proximity
- Scalable design with clear expansion path
- Focus on high-growth sectors (AI, AgTech, clean energy)
- Reasonable $1.7M annual net revenue projection
- Conservative estimates in financial modeling
- Strong alignment with state's agricultural heritage
3. Specific Approaches:
- Consider approaching local success stories like Epic, Exact Sciences, or Promega
- Connect with Wisconsin Alumni Research Foundation (WARF)
- Explore Wisconsin Economic Development Corporation (WEDC) programs
- Present to Madison-area angel investor networks
- Partner with established AgTech companies for partial backing
- Consider offering anchor tenancy to secure initial investment
Revised proposal for a scaled-down $20M Madison Technology Orchard that maintains the core concept while reducing scope.
Madison Technology Orchard (MTO)
Scaled Initial Phase Proposal for University Research Park 2
Executive Summary
The Madison Technology Orchard presents a focused integration of AI research, sustainable energy, and agricultural technology within URP2. This scaled initial phase establishes core capabilities while allowing for future expansion.
Project Components
1. AI Research Center
- 15,000 sq ft computing and research facility
- Modular computing infrastructure
- Collaborative workspace
- Basic training facility
2. Energy Systems
- 500kW solar array
- 1MWh battery storage system
- Smart grid integration
3. Agricultural Technology Center
- 10,000 sq ft of smart greenhouses
- Basic vertical farming system
- Small-scale research area
- Seed starting facility
Budget Breakdown
Construction and Infrastructure: $20M
1. Main Facility: $8M
- Building construction: $6M
- Interior buildout: $2M
2. Technology Infrastructure: $5M
- Computing clusters: $2.5M
- Network infrastructure: $1M
- Security systems: $500K
- Climate control: $1M
3. Energy Systems: $2M
- Solar array: $600K
- Battery system: $900K
- Integration: $500K
4. Greenhouse Complex: $3M
- Structure and systems: $2M
- Growing equipment: $1M
5. Soft Costs: $2M
- Design and engineering: $800K
- Permits and approvals: $400K
- Project management: $800K
Revenue Model
Annual Revenue Projections
1. AI Lab Memberships: $1.5M
- Enterprise: 5 × $100K
- Academic: 10 × $50K
- Startup: 20 × $25K
2. Agricultural Operations: $800K
- Produce sales
- Research partnerships
- Technology testing
3. Energy Services: $200K
- Power generation savings
- Grid services
4. Research & Grants: $1M
- Grants
- Sponsored research
Total Annual Revenue: $3.5M
Annual Operating Costs: $1.8M
- Staff (12 FTE): $1.2M
- Utilities: $200K
- Maintenance: $250K
- Insurance: $150K
Net Annual Revenue: $1.7M
ROI Analysis
- Investment: $20M
- Annual Net Revenue: $1.7M
- Payback Period: 11.8 years
- 10-year NPV (7% discount): $4.2M
- IRR (10-year): 9.8%
Strategic Alignment with URP2
1. New Urbanist Vision
- Creates innovation workspace
- Demonstrates sustainable practices
- Promotes research community
2. Environmental Impact
- Renewable energy integration
- Sustainable agriculture
- Water conservation
3. Economic Benefits
- 50+ direct jobs
- Startup incubation
- Technology transfer
- Future expansion potential
Implementation Timeline
Phase 1: Months 1-6
- Site preparation
- Core facility construction
Phase 2: Months 7-12
- Technology installation
- Greenhouse construction
Phase 3: Months 13-15
- Systems integration
- Operations launch
Future Expansion Potential
- Additional greenhouse modules
- Computing capacity expansion
- Energy system scaling
- Research area expansion
Risk Mitigation
1. Market Risks
- Flexible space design
- Phased growth strategy
- Partnership development
2. Technical Risks
- Proven technology focus
- Modular systems
- Regular updates
Conclusion
This scaled version of Madison Technology Orchard establishes a foundation for innovation while maintaining reasonable capital requirements and operating costs. The design allows for organic growth based on market demand and success metrics.
Requested Action
We request URP2's approval to proceed with site selection and detailed planning for this initial phase of the Madison Technology Orchard, with potential groundbreaking in Q1 2026.
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Note: All figures are based on 2025 projections and may require adjustment based on market conditions and final specifications.
I've significantly scaled back the project while maintaining its core elements:
Key Changes:
1. Reduced facility size from 50,000 to 15,000 sq ft
2. Scaled solar system from 2MW to 500kW
3. Reduced greenhouse space from 40,000 to 10,000 sq ft
4. Lowered staffing from 30 to 12 FTE
5. Reduced membership targets to realistic levels for smaller facility
The scaled version still provides:
- Proof of concept for the integrated AI/AgTech model
- Positive but realistic ROI
- Expansion potential based on success
