Connecticut Innovations News

CI Completes $1 Million Investment in CiDRA

In mid-April, Connecticut Innovations closed on a $1 million investment in CiDRA Corporation of Wallingford. CI’s investment was part of a round of up to $25 million, also including the following investors: Technoinvest Energy, Invest I AS, HRLD Limited Partnership, Axiom Venture Partners, Open Fields Private Partners LLC, Legacy Private Technology Partners, LTD, and Antar & Co.

This was CI’s fifth investment in CiDRA, bringing the total CI has invested in the company since 1997 to approximately $7 million. The CiDRA investment has returned $3.8 million to CI in cash to date.

Founded in 1996, CiDRA was the first company to combine industrial and optical technologies to deliver real-time process monitoring to multiple industries. The company's proprietary sonar-based flow meter technology was initially developed for flow measurement in one of the world's most demanding environments: downhole, offshore oil and gas production. Today, CiDRA has engineered the SONARtrac™ family of flow meters for similar performance in a diverse range of industrial flow applications. CiDRA’s meters can increase the efficiency and production of oil wells and oil sands through more accurate and precise measurements, helping to address the global energy crisis.

Upcoming Crossroads Venture Fair in Stamford

Connecticut Innovations is pleased to be the Lead Sponsor again this year for the thirteenth annual Crossroads Venture Fair, the Northeast's largest venue for capital. The event, being held May 2-3 at the Stamford Westin Hotel, will begin at 5:00 p.m. on Tuesday, May 2, with a talk by National Venture Capital Association President Mark Heesen, who will speak about current trends in equity investing. A Gala Reception will follow. Company presentations and the exhibition will take place the following day from 8:30 a.m. to 4:30 p.m.
This year Crossroads will feature:

• Over 100 companies seeking investments ranging from under $500K to over $10 million. To see descriptions of all companies click here.
• Presentations and exhibits by 20 companies with sales of $1 million or more.
• 90 early-stage companies as exhibitors.
• Company representatives from 22 industries, like biotechnology, software, energy, diversified technologies and others.

We hope you will join us for high-level peer-to-peer networking and presentations by select companies in growth industries.

For more information or to register, please call the CVG office at 203-256-5955 or visit www.Crossroads-CVG.org.

Led by a team including Connecticut Innovations, CURE, and the Connecticut Department of Economic and Community Development, the Connecticut Bioscience pavilion at BIO 2006 in Chicago offered information about Connecticut’s bioscience resources and activities to business leaders, scientists, students, and real estate and technology transfer professionals. At the BIO 2006 event, held April 9-13, a record 19,479 persons from 62 countries and 42 U.S. states were in attendance.

Connecticut’s participation in BIO 2006 was the first phase of a two-year strategy designed to strengthen participation by Connecticut companies and organizations in this premier BIO event. Planning for next year — BIO 2007 — began even before the Connecticut delegation closed the door on BIO 2006.  At a meeting on April 12, representatives from the sponsoring organizations — CURE, Connecticut Innovations, the Connecticut Department of Economic and Community Development, HistoRx, Nanoviricides, Yale, and the University of Connecticut — agreed that work needed to begin immediately if Connecticut was to take full advantage of the opportunity afforded by the Boston location for BIO next year. With general agreement that BIO 2006 was a success, it was felt that even more could be done to make BIO an effective profile-raising event for Connecticut and a valuable partnering event for sponsors.

BIO 2007 will take place May 6-9, 2007 in Boston and will have the theme “Science Converges. Business Emerges.”

Portfolio News

Achillion Pharmaceuticals Files for IPO (New Haven)

In early April, Achillion Pharmaceuticals, Inc., a New Haven-based drug development company focused on infectious diseases, filed to raise $75 million through an initial public offering of common stock. It plans to trade on the Nasdaq under ticker symbol ACHN, with Cowen & Co. and CIBC World Markets serving as lead underwriters. The company has raised a total of approximately $88 million in venture capital funding since its inception in 1998 from firms like Atlas Venture, SV International Life Sciences, Advent International Corp., Bear Stearns Health Innoventures, SG Capital Partners, Gilead Sciences and Connecticut Innovations. www.achillion.com


CiDRA Wins Major Contract (Wallingford)

In April, CiDRA Corporation announced that it had been awarded, through Bechtel Chile Ltda, a major contract to supply SONARtrac™ process monitoring systems to Minera Los Pelambres of Santiago, Chile, the world’s fifth largest copper mine. www.cidra.com.

Ikonisys Raises $10 Million and Gets FDA Clearance (New Haven)

In March, Ikonisys, Inc., a medical technology company focused on the development of products for prenatal and cancer diagnosis and screening and fertility, announced the closing of a $10 million Series D private equity financing. The funds will advance clinical development of a non-invasive test for prenatal diagnosis.

In February, Ikonisys announced that the Food and Drug Administration (FDA) cleared for marketing in the United States its automated cell-locating device, the Ikoniscope™fastFISH™ Amnio Test System. www.ikonisys.com

i-Mark Wins Six Major Customers (Hartford)

In March and April, i-Mark announced that six B2B durable goods manufacturers, including Nielson Sessions division of Actuant, Morganite Molten Metals division of The Crucible Company plc, Grove Gear division of Regal Beloit Corporation, W.M. Berg division of Rexnord, Belden IBDN and Masterfix, became new customers. All six manufacturers selected i-Mark’s 24/7 BUSINESS™ software solution to help them deliver Web self-service to their customers, prospects, agents and employees. www.imark.com

Merlot Establishes Seven New Channel Partnerships Overseas (Bethel)

In March, Merlot Communications Inc. announced that it had expanded its global footprint through the addition of seven new certified channel partners to meet the growing demand for cost-effective, highly reliable broadband solutions worldwide and to better serve the growing international customer base. Joining Merlot’s Connections Partner Program are Blu Pin d.o.o. of Croatia, Dacon of the United Kingdom, Epikinonia Ltd. of Greece, ICTV/InMotion of Greece, iFone of Spain and Mexico, it.hospitality Corp. of Switzerland and ProtelPro, spol.sr.o. of the Czech Republic. Merlot is one of the leading technology solutions providers enabling the transmission of voice, data and video over all existing wiring conditions. www.merlotcom.com

Netkey Named “Industry Leader” for HR Kiosk Software (Branford)

In its 2006 kiosk market overview report, Summit Research Associates, a self-service analyst firm, identified Netkey as the “industry leader” for human resources kiosk software. Such kiosks are primarily used by companies to provide corporate information to employees who do not have access to PCs or the corporate network during a normal work day. www.netkey.com


Neurogen Begins Phase I Clinical Trial for Pain Drug (Branford)

Perimeter’s most recent acquisition, announced in late February, was that of Breakwater Security Associates, a leading provider of managed security services and information risk management in the Pacific Northwest. With this new addition to Perimeter, the company has expanded its physical presence to six business offices - Milford, CT; Fort Lauderdale, FL; Charlotte, NC; Raleigh, NC; Salt Lake City, UT; and Seattle, WA.

In March, Perimeter announced that it had been selected by CUNA Strategic Services as that company’s exclusive endorsed managed security provider. CUNA Strategic Services is a subsidiary of Credit Union National Association (CUNA), the premier national trade association serving more than 90 percent of America's 9,000 credit unions.

Perimeter also announced its partnership with Nebraska Bankers' Bank, NA, (NBB). Perimeter will serve as NBB’s exclusive managed security partner. Nebraska Banker's Bank, NA, provides a wide array of correspondent banking services to over 100 financial institutions in the state of Nebraska.

In the first quarter of 2006, Perimeter was positioned by Gartner, Inc. in the ‘Magic Quadrant for MSSPs, North America, 2H05'. This honor is believed to be a reflection of Perimeter's unique On-Demand model and multi-threat “Security-in-the-Cloud” methodology. www.perimeterusa.com.


SignStorey Forms Unique Partnership with CBS (Fairfield)

A Next Generation Ventures Portfolio Company

In March, SignStorey and CBS, the nation’s number one television network, announced that they were partnering to provide customized in-store entertainment to more than 1,300 grocery stores across the nation. In the exclusive arrangement, CBS programs and personalities will appear in brief, custom-produced segments designed for busy shoppers. www.signstorey.com


SmartEquip Forms New Alliance (Norwalk)

In April, SmartEquip announced that it had formed an alliance with ITEDO Software LLC, the worldwide market leader in the field of technical illustration, located in Hennef, Germany and Burlingame, California. The two companies have joined forces to automate the publishing and management of illustrations for interactive parts catalogs and maintenance and repair manuals. www.smartequip.com

Charlie Moret (right), Connecticut Innovations Managing Director, Marketing and Communications, recently appeared on News 12 Connecticut's "12 On The Money" talking about the commercial use of solar photovoltaics.

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Message from the Chair

On April 27, 2006, we extended our best wishes to Chandler Howard, who left Connecticut Innovations to pursue a unique opportunity to start up a new community bank in New Haven.

Chandler was instrumental in assisting the Board of Directors in repositioning and strengthening CI for the future.

While the search is underway for Chandler’s successor, the CI Board of Directors has appointed Peter Longo to the position of Deputy Director. In this interim role, Pete will have overall responsibility for the day-to-day operations of Connecticut Innovations until Chandler’s successor is appointed, as well as continuing in his role as Executive Vice President of CI’s investment deal team.

CI has a long tradition of driving a vibrant, entrepreneurial, technology-based economy in Connecticut and we are excited about the current opportunities to further this mission. I encourage you to contact Peter regarding your technology development needs and ideas.

Elaine Pullen
Chair, Board of Directors
Connecticut Innovations

Clean Energy Week in April Generates Excitement

Held April 17-20 and organized by CI’s Connecticut Clean Energy Fund (CCEF) in partnership with SmartPower, Clean Energy Week generated enthusiasm and awareness about clean energy around the state. The week consisted of a series of special events, all of which were open to the public.

Ribbon Cutting Ceremony at Middletown High School during Clean Energy Week.


One of the events was the Clean Energy Challenge: New Haven vs. West Hartford. Under the challenge, New Haven Mayor John DeStefano and West Hartford Mayor Scott Slifka competed to see which town could sign up the greatest number of residents to the CTCleanEnergyOptions program. The winner was announced in West Hartford during Clean Energy Week. While both towns signed up an impressive number of residents – over 400 apiece – New Haven was named the winner.

Legislators’ Day, held at the Legislative Office Building in Hartford, was held on Tuesday. This event featured clean energy exhibits and short presentations by speakers from CCEF, environmental groups, economic development organizations, industry and the Environment Committee of the state legislature.

The Clean Energy Communities Awards Luncheon was held mid-week in Stamford. At the luncheon, CCEF and SmartPower recognized the ten Connecticut towns that have become Clean Energy Communities, presenting each town with an award. The ten towns that were honored included: Fairfield, Glastonbury, Hamden, Hartford, Mansfield, Middletown, Milford, New Haven, Stamford and West Hartford.

A Solar Ribbon Cutting Ceremony at Middletown High School marked the end of Clean Energy Week. At the event, CCEF congratulated Middletown on being the first Connecticut town to receive the prize of a free solar photovoltaic system for a town building under CCEF’s Clean Energy Communities Program.

Based on the success of Clean Energy Week this year, the organizers – CCEF and SmartPower – hope to host a similar series of events in 2007. So, stay tuned for more.

Staff Spotlight – Matthew Smith

Bioscience companies seeking equity investments from CI will be introduced to a managing director of investments who has extensive experience in the life science, medical device and healthcare arena, Matthew Smith. Matt, who joined CI one year ago, is responsible for making new investments in promising, Connecticut-based bioscience companies and for managing many of CI’s current bioscience investments.

Explaining why he joined CI, Matt stated, “CI and the healthcare industry share much in common. Both pursue technological advances that have a positive impact upon people and the quality of life. Both measure their success not just in financial terms but in social and human terms.”

Matt understands the needs of bioscience companies because he has worked with such companies in many capacities. He was a co-founder of CompreMedx Cancer Centers Corporation and Health Excel Management, Inc., both healthcare services companies, and was a co-owner of Kramex Corporation, a radiology equipment supplier. Matt also assisted in the turnaround of Medical Sterilization, Inc., a medical equipment company; served on the boards of directors of two healthcare service providers, Baseline Medical, Inc., and New World Healthcare Solutions, Inc.; and held various positions within medical device/supply companies like Technicon Corporation, American Hospital Supply Corporation and National Patent Development Corporation. Additionally, he gained experience in making venture capital investments in medical device companies while employed by GTE New Ventures Corporation. Matt has also served on the faculty of the Albert Einstein College of Medicine of Yeshiva University.

While Matt has devoted the majority of his career to the business side of bioscience and healthcare, he has also shared his business experiences more broadly, having served as the first executive director of the Entrepreneurship and Small Business Management Institute at Quinnipiac University’s School of Business.

Matt holds a bachelor’s degree and a master’s in business administration degree from Boston University.

Staff Spotlight – Kimberly Peterson

Kimberly is a new member of the Connecticut Innovations (CI) team, having joined CI in February 2006. As a Connecticut Clean Energy Fund (CCEF) project associate, she develops and manages incentive programs for small renewable energy systems.

Kimberly’s primary focus is managing CCEF’s Residential/Small Solar Photovoltaic (PV) Rebate Program, which offers financial incentives to homeowners, educational institutions and nonprofits wishing to install small solar PV systems. This spring, she has publicized CCEF’s small solar incentive by presenting at clean energy seminars in Fairfield, Glastonbury and Milford. These seminars are a joint public educational effort between the Connecticut Clean Energy Fund and the Connecticut Audubon Society. The two remaining seminars in the spring series will be held on May 17 in Pomfret and June 8 in Fairfield. For more information, visit www.ctcleanenergy.com/audubon.

“The Connecticut Clean Energy Fund is enabling homeowners to install PV systems to generate part of their electricity from the sun," stated Kimberly. "I am thrilled to play a facilitating role in our state’s transition to a clean energy future. Let’s make more!”

Kimberly’s career and interest in the environment, sustainability and renewable energy began more than a decade ago. Prior to joining CCEF, she served on the state and local initiatives team at the National Renewable Energy Laboratory (NREL) in Golden, Colorado, where she helped deploy renewable energy technologies – like solar, wind and biomass – to state and local governments. Kimberly was an elected board member of the Colorado Renewable Energy Society, an organization that was instrumental in passing the country’s first citizen statewide ballot initiative to mandate clean energy use. Prior to joining NREL, Kimberly held several positions with the U.S. Conference of Mayors in Washington, D.C. where she promoted sustainable development and environmental initiatives for America’s cities.

Kimberly earned a master’s degree in international commerce and policy from George Mason University and a bachelor’s degree in accounting and finance from the State University of New York at Buffalo.