Connecticut Innovations Nets $21 Million In FY 1999

After only ten years of investments, Connecticut Innovations, Inc. achieved a net income of $21.4 million in 1999, according to Connecticut Innovations’ latest annual report. The corporation reversed a deficit of over $20 million in retained earnings accumulated through 1995 to a positive $24.7 million by June 30, 1999. The corporation's record provides one of the strongest examples of successful state-funded, technology-based seed and venture capital investment to date.

Surpassing another significant milestone, total fund equity for Connecticut Innovations grew to slightly more than $103 million. The return on fund equity was 20.8 percent in 1999, also a new best for the corporation. Connecticut Innovations reported an internal rate of return on its equity and near-equity portfolio of 40 percent since inception.

Connecticut Innovations is the State of Connecticut’s leading investor in high technology, making risk capital investments in entrepreneurial companies across the state. The corporation has several different financial and technical programs and investment funds to assist qualified Connecticut businesses, colleges, and universities including:

• Risk capital and early-stage investments for emerging and established technology-based businesses;
• An information clearinghouse for firms and individuals starting or growing technology-based businesses;
• A venture capital fund to support new company formation through technology transfer from universities;
• Funding for high technology R&D at Connecticut colleges and universities;
• Matching funds to leverage and supplement federal R&D awards; and,
• Funding to develop laboratory space for biotech research and commercialization.

In FY 2000, Connecticut Innovations will administer the Connecticut Renewable Energies Investment Fund, a new effort established by the state legislature to encourage the development and commercialization of renewable energy technologies. Additionally, the Fund will ensure Connecticut electricity consumers have renewable energy options under electric utility deregulation.

Also over the next 3 years, Connecticut Innovations will provide up to $9 million for university/industry applied research projects.

Because of its success, Connecticut Innovations will self-fund (i.e., use no public appropriations for) its operating expenses, capital for equity investment, launch capital for a new technology test bed program, and funding for the university/industry collaborations.

For more information on Connecticut Innovations and its 1999 annual report, visit http://www.ctinnovations.com or call Pamela Hartley at (860) 563-5851.