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Investing in Connecticut

Presentation to: Inventors Association of Connecticut Peter V. Longo President and Executive Director March 23, 2010. Investing in Connecticut. CI is the state of Connecticut’s venture capital arm. CI grows high-tech companies and jobs in Connecticut by providing: . Our Franchise.

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Investing in Connecticut

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  1. Presentation to: Inventors Association of ConnecticutPeter V. LongoPresident and Executive DirectorMarch 23, 2010

  2. Investing in Connecticut CI is the state of Connecticut’s venture capital arm. CI grows high-tech companies and jobs in Connecticut by providing:

  3. Our Franchise • Quasi-public authority created in 1989 • Connecticut’s most active VC funder of early- and seed-stage high-tech companies • Independent board of directors with experts from business, technology, academia and government • Independence and agility make us innovative and responsive to market needs • Private sector principles and practices to achieve public sector goals

  4. Our Model • Breadth of technology initiatives: • Pre-Seed support services • Seed stage investments • Equity investments • Infrastructure financing • Newly launched Clean Tech Fund • SBIR Office • Stem Cell Research Program and CT Clean Energy Fund • Guided and advised by several industry-specific advisory boards composed of well-known experts • Unique and successful model that has become the model of other states

  5. Funds and Initiatives

  6. Early Stage Initiatives • Pre-Seed Support Services • $1m commitment; focuses on innovation and turning entrepreneurs’ ideas into companies • CTech • Technology business incubator that provides access to a broad network of resources • Seed Investment Fund • $4m fund focusing on non-bioscience technology companies • Connecticut BioSeed Fund • $5m fund created with CI investment returns to get companies to “the next level” • SBIR Office • Helps high-tech small businesses compete and win federal awards • Facilitates collaboration between industry, academia, government

  7. Eli Whitney Fund • Invested $131.2 million in 90 companies through December 2010; $125.3 million from Eli Whitney Fund • Leveraged over $1 billion of private capital • Achieved 42 successful investment exits • IPOs – 14 • Sales – 28 • Current portfolio: 40 companies (34 Eli Whitney) • IRR 19.89% through FY 09

  8. Eli Whitney FundInvestment Criteria • Sustainable competitive advantage • Beta-stage prototype • Solid management team • Headquarters, technology functions and majority of operations in Connecticut • Growing employee presence in Connecticut • Ability to obtain funds from other investors

  9. Clean Tech Fund • $9 million fund • Partnership: CI, DECD, CCEF • Invests in seed- and early-stage companies focused on innovations that conserve energy and resources, protect the environment or eliminate harmful waste. • Technologies include: • Renewable energy generation • Energy efficiency • Environmental remediation • Clean water • Renewable fuel • 4 investments closed

  10. Current Portfolio Technology Distribution

  11. Bioscience New Haven, CT

  12. Information Technology Milford, CT

  13. Photonics East Granby, CT

  14. Energy & Environmental Sandy Hook, CT

  15. Pre-Seed Support Services Program • Created with $1 million commitment • Focuses on innovation and new company formation • Helps high-tech entrepreneurs turn ideas into companies by providing: • Mentoring • Advisory services • Limited funding when needed

  16. Pre-Seed Support Services Program • Advisory Services • Intellectual property reviews • Technology reviews • Market analyses • Market entry strategies • Business plan reviews and development • CTech – technology business accelerator

  17. Technology business accelerator • Houses startup technology companies • Provides access to a broad network of resources • Other entrepreneurs • Investors • Business advisors • Technologists • Brown bag lunch seminars • Public/private collaborate effort

  18. Seed Investment Fund • $4 million fund • Invested in 6 companies to date including 2 relocations • Non-bioscience technology companies • Pre-Series A stage of development • Companies must have: • Proprietary technology • Sustainable competitive advantage • Near completion beta product • “Skin in the game”

  19. Connecticut BioSeed Fund • $5 million fund created with CI investment returns • Outstanding, highly experienced advisory board • Invested $1.7 million • Very high risk deals • Strong pipeline opportunities

  20. SBIR Office • CT Small Business Innovation Research (SBIR) Office • Helps high-tech small businesses compete for and win federal SBIR/STTR awards • Facilitates commercialization through collaborations (e.g. Phase III) • Matches strategic partners • Partner with a Prime • Matches for Money • Partner with a Professor • Careers for Engineers • Collaborate to Innovate • Designs conferences – e.g. 2010 National SBIR Conference in Hartford, April 20-23 (www.SBIRnational.com)

  21. Program Administration • Connecticut Clean Energy Fund • Ratepayer fund created to foster the growth and development of clean energy installations and awareness across Connecticut • Extraordinary economic development opportunity • BioScience Facilities Fund • Helps startups deal with the expense of wet laboratory space • $34.5 million funded - debt with warrants • 350,000+ square feet of new lab and related space created • 10,600 square feet transitional lab space • CT Stem Cell Research Program • State initiative managed by DPH • Advancement of human embryonic stem cell research • Commercialization opportunities

  22. Connecticut Clean Energy Fund • Goals • Develop a diverse supply of installed clean energy resources • Foster the growth, development and commercialization of clean energy technologies • Stimulate demand for clean, renewable energy by increasing consumer awareness

  23. Companies Funded Total Invested 18 17 $11.54 $9.04 11 $6.51 Millions 3 $1.49 Recent Investment Accomplishments • FY 2009 - invested $9.04 million in 17 companies • 3Q FY 2010 - approved $9.75 million in 17 companies • Current Pipeline • 29 companies • $95.5 million ($31.2 million from CI) 14 (app.) $6.11 ( app.)

  24. Recruitment California Massachusetts Canada New York United Kingdom New York France New York New Jersey Virginia

  25. Impact on ConnecticutFY95 through FY08 • For each dollar CI invested… • …the state of Connecticut realized $1.97 in net state revenue. • …Connecticut’s gross domestic product increased $23.80. • …personal income in Connecticut increased $14.30. • For each dollar the state of Connecticut originally invested in CI, CI and its investment partners leveraged $9.43. • CI’s cumulative investment of $152 million in 84 companies generated new economic activity that produced $2.17 billion measured in terms of cumulative personal income and $3.6 billion measured in terms of gross domestic product. • Connecticut is nearly $15 million richer each year because of CI’s investments in its portfolio companies during this period. • CI’s investments added on average 1,610 jobs per year; 563 direct and 1,046 indirect or induced

  26. Looking for: • Technology entrepreneurs • Student entrepreneurs • Technology startups • Expanding technology companies

  27. www.ctinnovations.com Connecticut Innovations 200 Corporate Place, 3rd Floor Rocky Hill, CT 06067 860-563-5851

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