Rocky Hill, Conn., January 17, 2008 – Connecticut Innovations (CI), the state’s quasi-public authority responsible for technology investing and innovation development, today announced that its board of directors approved an allocation of $2 million to its Seed Investment Fund which provides funding to non-bioscience technology companies in Connecticut that are currently in a pre-Series A stage of development.
“It’s exciting that the Seed Investment Fund has been so successful that we had to approach the board for an additional allocation of $2 million,” said Peter V. Longo, president and executive director of CI. “Last year our research indicated that there was a real need for capital in this market segment. The success of the fund proves that our findings were right.” Longo continued, “This fund is an important differentiator for Connecticut because it has already helped us attract two companies to Connecticut that might not otherwise have located here.”
Launched by the CI board of directors in April, 2007, the Seed Investment Fund is designed to complement the existing Connecticut BioSeed Fund of CI, which offers financial assistance to emerging bioscience companies. As of January 2008, the Seed Investment Fund has closed four investments totaling $1.7 million, providing assistance to RemoTV Inc. (New Haven), New Ortho Polymers Inc. (Farmington), Keisense Inc. (Hartford) and Frevvo Inc. (Wallingford).
Seed investments of up to $500,000 are structured as equity (preferred stock), convertible debt, or debt with warrants depending on the individual circumstances of the deal.
“The Seed Investment Fund fills a critical funding gap at the earliest stage of a company’s development,” said Governor M. Jodi Rell. “Doing so helps companies grow in Connecticut and add high value jobs to our economic base. I applaud the CI board of directors for approving this additional allocation.”
About Connecticut Innovations, Inc.
Connecticut Innovations (CI) is a quasi-public organization dedicated to driving a vibrant, entrepreneurial, technology-based economy in Connecticut. CI stimulates high-tech growth by investing in: early-stage Connecticut technology companies; university/industry research collaborations; technology transfer; and, clean energy initiatives through the Connecticut Clean Energy Fund. CI also fosters collaboration among government, business, nonprofit and academic organizations to advance technology growth and promotes public policies consistent with CI’s mission. For more information on CI, please visit www.ctinnovations.com.
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