Connecticut Innovations: A Decade of Investment

Posted on 27. Jan, 2010 by in Blog, connecticut, economic development, entrepreneurs

Connecticut Innovations Report 2009This post is primarily geared toward our clients, but any person thinking strategically about their business’s future in Connecticut should be aware of the role of Connecticut Innovations (CI). It’s a hybrid investment vehicle that is neither public, nor private. Since its creation in 1989, it has invested “$124.9 million” in “90 Connecticut companies”, including Open Solutions, i-Mark and RemoTV. Another $62.6 million went to non-Connecticut companies.

The study, conducted by the Department of Economic and Community Development (the commissioner of which sits on the CI Board) cites the following accomplishments:

  • CI Creates Jobs – CI’s investments grew Connecticut jobs by an average of 1,610 jobs each year from 1995 through 2008.
  • CI Contributes to State Tax Revenues – The cumulative, net state revenue2 generated by CI’s investment activity exclusively exceeds $209 million.  This represents an average increase of $14.9 million in net state revenues every year.
  • CI Brings Additional Outside Investment Into Connecticut – Connecticut’s cumulative investment in CI of $106 million leveraged an additional $1 billion over the period studied from CI’s investment partners.  As a result, Connecticut’s gross state product increased cumulatively by $3.6 billion and by $258.5 million on average each year.

Having worked with several CI-funded companies, we’ve seen the positive impact of their early stage funding.

Our Recommendation: Read the Report

Ask any angel investor about the investing climate in Connecticut, and you will find that it’s not ideal yet, especially when several other states provide upwards of a 25% tax credit for angel investment. What’s the right mix of public and private early stage funding (i.e. risky) in your opinion? Let us know in the comments.

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