National Startup Analysis Sees Potential, Standout Efforts Underway in Hartford

A new analysis of the status of the business startup community in six American cities – including Hartford – has found that Connecticut’s Capitol City has “strong startup potential,” and in some ways is already standing out among peers and competitors. Startup Genome, with support from the Kauffman Foundation, selected six U.S. metropolitan areas that are not in the top 40 most populous and which have been faring less well economically than the country as a whole for a deeper analysis.  In addition to Hartford, the analysis includes Albuquerque, Fresno, New Orleans, Reno and Springfield, MA.

“In each of these metros, efforts are underway to support entrepreneurs, create more startups, and generate stronger economic trajectories. Like many other American cities (and elsewhere), they’ve been through economic ups and downs and now see startups as their next best hope for sustainable and broadly-shared growth,” the report, released this week, points out.  Startup Genome works to increase the success rate of startups and improve the performance of startups across more than 30 countries.

“Every startup ecosystem shows room for growth and improvement, and Hartford has key strengths to build on. The city's strong heritage in insurance is already being leveraged by many stakeholders and the ecosystem is clearly attracting experienced talent to start and join companies,” Dane Stangler, president & chief policy officer of Startup Genome told CT by the Numbers.

In Hartford, reSET, which specializes in encouraging and assisting entrepreneurship and social enterprise, was among several local partners with whom Startup Genome worked to gather data from more than 300 respondents.  Additional partners were the MetroHartford Alliance, Wesleyan University, UConn’s Connecticut Center for Entrepreneurship and Innovation, Upward Hartford,  as well as Launch EZ, the West Hartford Chamber of Commerce and others.

“More broadly, Hartford shows greater diversity than peer ecosystems and already has a few hundred startups operating. By continuing to strengthen the local culture and focusing on startup success in key areas, the Hartford economy will enjoy higher levels of job creation and growth,” Stangler added.

Hartford and the other cities were determined to be in the Early Activation phase of the Ecosystem Lifecycle, with a mix of prominent attributes and areas with potential yet to be realized.  In its analysis, the report indicates that “just in the span of a few years the startup scene has exploded,” in Hartford, noting that:

• investors and experts in Hartford provide more hours of help to founders than in the other cities, and more than the global average. (Experts include university faculty, corporate employees, mentors, and others.)
• nearly four in 10 founders in Hartford are women, which is twice the global average across all ecosystems in the Startup Genome database.
• 11 percent of startup founders in Hartford are immigrants, the second-highest in the sample.

“We’re so grateful that Startup Genome was able to include Hartford in its recent analysis of early-stage ecosystems, thanks to support from the Kauffman Foundation,” said reSET Managing Director Ojala Naeem.  “Our great city is too often overlooked, and with local and state funding being what they are, national attention on all of the amazing businesses making an impact here is more important than ever. We have so many smart and motivated entrepreneurs who are worthy of investment consideration. They just need a spotlight.”

The comprehensive assessment of Hartford’s ecosystem also noted that “Hartford’s [startup] founders claim to have the right ambition to go global,” concluding that “Hartford’s startups have more potential to strengthen Global Market Reach and Global Connectedness.” In a number of areas analyzed in the assessment, Hartford is seen as having potential to strengthen the local startup community, its reach beyond Hartford, and the demographic of startup teams.

During the past seven years Startup Genome has provided a way for entrepreneurs everywhere to “tell us about their journeys and their regions - giving their local expertise a voice at the policy-making table.” The organization’s primary research with founders, supplemented with secondary research and data from global and local partners, helps create the world’s most comprehensive research on startups. Approximately 10,000 startup founders fill out global survey providing direct input each year.

“Hartford has some record of successes – generating more will help ecosystem size and performance,” Startup Genome observed in its assessment of Hartford.

Connecticut-Grown Businesses Lead Stand-out Cohort of Entrepreneurial Start-Ups

reSET, the Hartford-based Social Enterprise Trust, whose mission is advancing the social enterprise sector and supporting entrepreneurs of all stripes, has announced the winners of its 2018 Venture Showcase, and three Connecticut-grown businesses took the top awards. The annual event recognizes the talented entrepreneurs and innovative businesses that have just graduated from reSET’s nationally recognized accelerator. This year, 18 early stage enterprises graduated from the most recent cohort, and eight finalists competed for $20,000 in unrestricted funding.  reSET’s goal is to meet entrepreneurs wherever they are in their trajectory and to help them take their businesses to the next level.

The entrepreneurs pitched their business models to an audience of founders, investors, and community and corporate stakeholders. The panel of judges included Claire Leonardi, former CEO of Connecticut Innovations; Alan Mattamana, Partner at Fairview Capital Partners; and Lalitha Shivaswamy, President of Helios Management Corporation.

Winning the top $10,000 award was Loki, which was created in a “group independent study” through UConn’s Digital Media and Design program by Andrew Ginzberg and co-founders Jeffrey Santi, Brian Kelleher, and Case Polen.  Described as “a new kind of media company” - a video sharing platform exclusively for smartphones - Loki is “a place where you can watch events through collections of many perspectives, live-streamed through the eyes of people actually there.”  The company’s website is welcoming people who would like to learn more to leave an email address.

Taking the second-place $6,000 award was Florapothecarie, a line of 100% natural + vegan skincare products, “lovingly handmade in Connecticut” by Sami Jo Jensen.  The line of products is certified vegan and cruelty-free by Leaping Bunny and PETA.

The third-place entrepreneurial business was Bare Life, launching a line of crave-worthy food products with the world’s first Organic, Vegan, Paleo, Non-GMO, Dairy Free, Gluten Free and Refined Sugar Free Hot Chocolate Powder.  Founded by local resident Ali Lazowski, who was put on a very restricted diet due to numerous medical conditions and learned first-hand how scarce allergen and irritant-free foods are. So, she set out to create them. Bare Life's mission is to make these allergen and irritant friendly foods and recipes convenient for everyone, especially the chronically ill.

The event was held last week at the YG Club at Dunkin’ Donuts Park to a sellout crowd of 225. Before selecting the 18 ventures that would participate in the Accelerator class, officials had reSET had to sift through an applicant pool that was the most competitive yet, with 110+ submissions from all over the world.  Since 2013, reSET has graduated 105 companies from its accelerator program and has awarded more than a quarter of a million dollars to scaling ventures.

The Superlative Award for “Most Improved Pitch” was won by FieldOwler, a new business that provides auditing and risk management software and solutions to help businesses, organizations, and agencies.  Other finalists were CNG Fit, LLC / Fit Party Me, Lioness Magazine, Noteworthy Chocolates, RecordME, and SKYWIREme .

The Accelerator program and Venture Showcase was made possible by reSET’s partners and sponsors, including  CTNext, The Hartford Foundation for Public Giving, Travelers, The Walker Group, Bank of America, The Hartford, GoodWorks Insurance, and People’s United Community Foundation.  SnapSeat Photo Booths also provided in-kind services.

reSET, the Social Enterprise Trust is a non-profit organization whose mission is to advance the social enterprise sector. reSET serves all entrepreneurs, but specializes in social enterprise ― impact driven business with a double and sometimes triple bottom line. In addition to providing co-working space and accelerator and mentoring programs, reSET aims to inspire innovation and community collaboration, and to support entrepreneurs in creating market-based solutions to community challenges.

Award-Winning Accelerator Prepares for Next Cohort of Start-up Businesses

reSET, a Hartford-based non-profit organization supporting entrepreneurs, has opened applications for its highly regarded business accelerator program for 2018. Tailored for impact-driven businesses but available to early-stage ventures across all industries, reSET’s Impact Accelerator was a winner of the U.S. Small Business Administration Growth Accelerator Competition, and was the only Connecticut accelerator to receive the award, in 2015. Running from next January through May, the five-year old program will provide entrepreneurs with access to the knowledge and resources they need to grow their businesses and impact. Applications are being reviewed on a rolling basis; the final deadline is December 8, 2017.  Applicants are not limited to the Hartford area or Connecticut; in previous cohorts, participants have been from other states and nations.

reSET is a nonprofit organization whose mission is advancing the social enterprise sector. Its strategic goals are threefold: to be the “go-to” place for impact entrepreneurs, to make Hartford known as Impact City, and Connecticut the Social Enterprise state. reSET meets entrepreneurs wherever they are in their trajectory and aims to help them take their businesses to the next level.

The accelerator program has graduated 80 businesses to date. Recent participants have experienced success in advancing their businesses, including competitor acquisition, venture capital investment, and nationwide sales and recognition. 

Among the businesses are Almasuite, CareerPathMobile, Phood, Pelletric, Eureeka, Save America, and Genius Box. Kate Pipa, co-founder of Genius Box, which develops and sends science kits to elementary and middle-school age children, credits the Impact Accelerator with helping her business gain traction.

“reSET’s Impact Accelerator was a great stepping stone for getting introduced to and more involved in Connecticut’s startup scene.  Just being in reSET’s community allowed for access to workshops, mentors and service providers to answers questions and provide advice on different challenges that can come up when starting your business.”

Over the course of four weekend summits during the accelerator program, participants selected for the 2018 cohort will be connected to customers and industry-specific mentors. Up to 20 entrepreneurial teams will have access to:

• 20+ optional workshops covering a range of topics in business and social enterprise
• Numerous structured and unstructured opportunities to engage with investors and advisors
• 1-year reSET membership (includes access to co-working, programming and the on-site Entrepreneur-in-Residence)
• Exclusive discounts on business software packages and other resources

The accelerator will be free for accepted entrepreneurs and no equity will be taken from their operations. Graduates will also have an opportunity to compete for $20,000 in unrestricted funding at a culminating Venture Showcase in Spring 2018.

“As an entrepreneur myself, I have experienced the ups and downs of launching a new business,” said Jeremy Szechenyi, reSET’s Programs Manager. “Between reSET’s physical office and programs, we give entrepreneurs the resources and network that is critical to surviving and bringing their work to the next level.”

An information sessions will be held at reSET  (1429 Park Street, Hartford) on October 26 from 12:30-1:30pm, and November 15 from 5:30-6:30pm.  The sessions will be informal and meant to address prospective candidates questions.

reSET serves all entrepreneurs, but specializes in social enterprise ― impact driven business with a double or triple bottom line. In addition to providing co-working space, accelerator and mentoring programs, reSET aims to inspire innovation and community collaboration, and to support entrepreneurs in creating market-based solutions to community challenges.

Yelp Means Help for Three Hartford-Area Nonprofits

Three Hartford area nonprofit organizations have received a financial boost from the charitable foundation of Yelp, the website of business recommendations. This past fall, Yelp nominated three non-profit organizations in 75 cities around the country that support the Yelp Foundation’s mission of addressing the needs of local communities, including access to information, education, local economic development, and freedom of expression. In Hartford, those organizations were The Connecticut Forum, Literacy Volunteers of Greater Hartford and reSET Social Enterprise Trust. 

The Yelp Foundation announced it would grant $5,000 to the organization with the most votes at the end of a web-based public voting campaign. The second and third place winners would be granted $3,000 and $2,000 respectively. Individuals could vote once each day during the two-week web voting period.

The Foundation announced this week that the top-vote getter, The Connecticut Forum, will be receiving a $5,000 grant.  Literacy Volunteers of Greater Hartford will be receiving a $3,000 grant; reSET Social Enterprise Trust will receive $2,000.

The Yelp Foundation's mission is to support charitable organizations and activities addressing the needs of local communities, including access to information, education, local economic development, and freedom of expression, and to promote a culture of philanthropy among employees of Yelp Inc. Nationwide, 225 organizations will be receiving grants totaling $750,000.

The Connecticut Forum presents live, unscripted conversations among renowned experts and celebrities, and community outreach programs including the Connecticut YOUTH Forum. The organization’s mission: “to encourage the free and active exchange of ideas in Forums that inform, challenge, entertain, inspire and build bridges among all people and organizations in our community.”

Literacy Volunteers of Greater Hartford is a private non-profit organization that has provided adult literacy services in Greater Hartford since 1972. Their “vision is to build a stronger, more resilient Greater Hartford by creating a community of fully literate adults.”  Annually, the organization now serves over 850 adults in 20 towns throughout the region.

reSET is a non-profit organization whose mission is to advance the social enterprise sector. Its strategic goals are threefold: to be the “go-to” place for impact entrepreneurs, to make Hartford the Impact City, and Connecticut the social enterprise state. reSET serves all entrepreneurs, but specializes in social enterprise ― impact driven business with a double and sometimes triple bottom line. In addition to providing co-working space and accelerator and mentoring programs, reSET aims to inspire innovation and community collaboration, and to support entrepreneurs in creating market-based solutions to community challenges.

Yelp was founded in 2004 to help people find great local businesses like dentists, hair stylists and mechanics.  Yelp had a monthly average of 89 million unique visitors who visited Yelp via their mobile device in the third quarter of 2015, according to the company, which also notes that “Yelpers” have written more than 90 million reviews since the company’s inception.

In 2011 Yelp Inc. established the Yelp Foundation with one percent of company equity to support charitable organizations and activities addressing the needs of local communities, including access to information, education, local economic development, and freedom of expression, and to promote a culture of philanthropy among employees of Yelp Inc.

The Foundation accomplishes its charitable goals by making grants to deserving nonprofits throughout the U.S. and matching donations made to charities by Yelp employees up to $1,000 per person per year, according to the Foundation website.   In 2014, the Foundation committed $1 million to charity.  To learn more about the Yelp Foundation, visit http://www.yelpfoundation.org/

Award-Winning Start-Up Accelerator to Launch Largest Class of Social Enterprises, Fledgling Businesses

When the Hartford-based Social Enterprise Trust, known as reSET, was among the winners of the U.S Small Business Administration’s Growth Accelerator Competition last year – the only Connecticut organization to do so and one of 80 nationwide – it was not known what earning that designation, and  the $50,000 that came with it, would mean for reSET’s Impact Accelerator program. Now, the picture is becoming clearer – and boosting Hartford’s reputation as a city for socially committed entrepreneurial start-up businesses.  The expanding initiative is attracting not only home grown companies, but start-ups from elsewhere across the country, including as far away as California.

Tailored for impact-driven businesses but available to all early-stage ventures, reSET’s Impact Accelerator, now beginning its fourth year, has as its primary objective to test and hone entrepreneurs’ models, and to connect them to networks, mentors, customers, and resources.

A cohort of 22 businesses have been accepted to the program and most of their models are impact focused, serving the educational technology, health and health tech, energy, and agriculture industries. More than 60 percent of them are already generating revenue.  It is the largest group of companies to take part in the accelerator program at reSET, and the first to include a handful of out-of-state participants.

Running from January 20 to June 2, reSET’s accelerator will feature a more flexible program designed for busy, full-time entrepreneurs, as well as a ‘pay what you can’ model.  Entrepreneurial teams will attend five weekend summits, with 30+ optional workshops, mentor office hours, and consultations with an Entrepreneur in Residence conducted during the week.

At program’s end, a $25,000 accelerator funding pool will be available to the cohort, and they'll have priority access to reSET’s investment fund as well, via mentors and advisors that can help them put their best foot forward with their applications, according to reSET officials.

The 2016 cohort includes: Agyncy (www.agyncy.com), AmRide (www.amride.com), Asarasi (www.asarasi.com), BLT Robotics (www.bltrobotics.com), Doors to Explore (www.doorstoexplore.com), DopaFit (www.mydopafit.com), Enviro Power, LLC (www.enviropowertec.com), Keep Sight (www.keepsight.com), Lion’s Heart (www.lionsheartservice.org), Mivy (www.mivyapp.com), Movia Robotics (www.moviarobotics.com), Muni (www.muni.info), myHomeProNetwork (https://myhomepronetwork.com), Plucked (www.pluckedadmissions.org), RepVisits (www.repvisits.com), ScripFlip (www.scriptflip.org), SnapSeat (www.snapseatbooths.com), Tainted Inc. (www.tainted-beauty.com), Text Engine (www.textengine.info), The TubieGuard (the-tubieguard.myshopify.com), Trekeffect (https://trekeffect.com), and Untapped Potential (www.upotential.org).

“We’ve made a strategic shift with our accelerator model so it can accommodate more participants at one time, which we feel will really encourage more collaboration,” said Rosie Gallant, reSET’s Director of Programs. “The shift will help tee up the accelerator for our annual Impact Challenge as well, since the program will wrap in the spring right around when applications will open for the competition in which participants will vie for this year’s $100,000 prize purse.”

reSET is a non-profit organization whose mission is to advance the social enterprise sector.  Its strategic goals are threefold: to be the “go-to” place for impact entrepreneurs, to make Hartford the Impact City, and Connecticut the social enterprise state.  reSET aims to inspire innovation and community collaboration, and to support entrepreneurs in creating market-based solutions to community challenges.  reSET’s goal is to meet entrepreneurs wherever they are in their trajectory and to help them take their businesses to the next level.

Fledgling "Businesses with Impact" Recognized, Receive Funds to Propel Start-Up

When reSET, the Social Enterprise Trust, whose mission is advancing the social enterprise sector, revealed the winners of its annual Impact Challenge last week, the top award recipient was FRESH Farm Aquaponics, with Movia Robotics, Planet Fuel Beverage Company, Hartford Prints! and Parrot MD rounding out the top five. While the businesses may not be household names, they do represent an increasing number of start-up businesses that are not only seeking a foothold in their respective industries, but are looking to contribute to their community – locally or globally – along the way.

Based in Hartford, FRESH Farm Aquaponics is devoted to providing “the best quality aquaponic food to our community sustainably, teaching a new generation with aquaponics, and engaging the community to develop a local food ecosystem.” The company proclaims “expect from us the best produce available locally, year round in the Hartford County area. You will also see us engaging local schools in pioneering aquaponic experiments from elementary schools to universities.” (see video below)

Planet Fuel is a sustainable lifestyle beverate brand for teens and tweens.  The company's goal is to inspire young people to realize the power of consumer choices to effect social and environmental change.

MOVIA Robotics provides an innovative approach in educating children with autism to "form connections inside the world we live in today." The company uses robots and develops "our own software based on interactions with therapists and children."

Now in its fifth year, the reSET Impact Challenge recognizes the most innovative and impactful early stage ventures and start-ups from all industries throughout New England.  The event, held at The Society Room of Hartford, saw a record, sellout crowd of 300 in attendance.

Diamond Level - $20,000 + Professional Services Package (1 Winner)

FRESH Farm Aquaponics (http://www.freshfarmct.org)

Gold Level - $10,000 + Professional Services Package (2 Winners)

Movia Robotics (www.moviarobotics.com)

Planet Fuel Beverage Company (http://www.planetfuel.com)

Silver - $5,000 + Professional Services Package (2 Winners)

Hartford Prints! (hartfordprints.com)

Parrot MD (parrotmd.org)

People’s Choice - $1,500 + Professional Services Package (1 Winner)

BookBugs (www.bookbugs.net) 

Investor’s Choice - $1,500 (1 Winner)

Send Help Back Home (www.sendhelptoday.com)

Bronze - $500 (7 Winners)

Asarasi, Inc. (www.asarasi.com)

Beautiful Day / Providence Granola Project (www.providencegranola.com)

BookBugs (www.bookbugs.net)

Daily General Counsel (www.dailygeneralcounsel.com)

Dream See Do (https://www.dreamseedo.org)

Hugo & Hoby (www.hugoandhoby.com)

LOTUS Alliance LLC (www.lotusalliance.org)

The five awards judges - Sherrell Dorsey of Uber and Triple Pundit, Adam Dotson of Ironwood Capital, Claire Leonardi, an advisor to reSET's Social Enterprise Investment Fund and former CEO of Connnecticut Innovations, Anthony Price of LootScout and Paul Witinski of Ironwood Capital - narrowed down more than 100 applicants to 12 honorees.  The People’s Choice winner was selected via more than 1,800 online votes.

Since its inception, reSET’s Impact Challenge has awarded more than $180,000 to scaling entrepreneurs. reSET is a nonprofit organization whose mission is advancing the social enterprise sector. Its strategic goals are threefold: to be the “go-to” place for impact entrepreneurs, to make Hartford known as Impact City, and Connecticut the Social Enterprise state.  In addition to providing co-working space, accelerator and mentoring programs, reSET aims to inspire innovation and community collaboration, and to support entrepreneurs in creating market-based solutions to community challenges. reSET’s goal is to meet entrepreneurs wherever they are in their trajectory and to help them take their businesses to the next level.

reSET’s Impact Accelerator recently was a winner of the U.S. Small Business Administration Growth Accelerator Competition, the only Connecticut growth accelerator to receive the award this year.

https://youtu.be/A03RH_htQ88

Benefit Corporations Find a Home in Delaware, Connecticut to Try Again Next Year

During the summer, progress was made on efforts to advance social benefit corporations – businesses that aim to impact their communities in addition to making a profit – but that progress did not come in Connecticut.

Delaware became the 19th state (plus the District of Columbia) to enact benefit corporation legislation in July.  Similar legislation did not make it through the Connecticut legislature in 2013, despite widespread support and no known opposition.

Delaware, as corporate home venture-backed businesses, 50 percent of all publicly-traded companies, and 64 percent of the Fortune 500, is considered by advocates to be among the most important states for businesses that seek access to venture capital, private equity, and public capital markets.

The goal of the legislation is to create in state law a new type of corporation—the benefit corporation—that best meets the needs of entrepreneurs and investors seeking to use business to solve social and environmental problems.  Benefit corporations operate the same as traditional corporations but with higher standards of corporate purpose, accountability, and transparency, advocates say.  The new designation provides business leaders with legal protection to pursue a higher purpose than profit, and they offer investors and the public greater transparency to protect against pretenders, supporters point out.

In Connecticut, despite being introduced earlier this year with the backing of Governor Dannel Malloy, overwhelming support in the state House where it passed by a lopsided 128-12 on May 20, and co-sponsorship by the legislature’s four top leaders, legislation establishing the “benefit corporation” as a new type of corporate entity never came up for a vote in the State Senate, and thus it died when the session ended in June.

Among the leading advocates of the proposal in Connecticut, the reSET Social Enterprise Trust has vowed to renew the effort next year, a commitment echoed by a broad coalition of supporters in the private sector and in government economic development circles. “In the next legislative session, reSET will re-double its efforts to secure passage of this much-needed legislation,” the organization emphasizes, pointing out that the bill “drafted in cooperation with the Connecticut Bar Association and BLab, is the most comprehensive of its type proposed in the United States.”

In recognition of the milestone achievement in Delaware, more than 600 businesses around the country signed an Open Letter inviting their peers to join the movement to redefine success in business.

The letter stated, in part, “we see this as a big market opportunity, because a large and increasing number of people want to support a better way to do business -- better for our workers, better for our communities, better for our environment.  Until recently, corporate law has not recognized the legitimacy of any corporate purpose other than maximizing profits. That old conception of the role of business in society is at best limiting, and at worst destructive. By serving a higher purpose and by meeting higher standards of transparency and accountability, we build our most important asset -- trust. This trust enables us to attract the best talent and turn customers into evangelists, helping us make money and make a difference.

Delaware Governor Jack Markell, writing in the Huffington Post, said “These new Delaware public benefit corporations will harness the power of private enterprise to create public benefit. In the short term, they will create high quality jobs and improve the quality of life in our communities. In the long term, as many enter the public capital markets, they will help combat the plague of short termism that we have seen over the last five years can undermine a shared and durable prosperity.”

Markell noted that the new public benefit corporations will “have three unique features that make them potential game changers” – “concern corporate purpose, accountability, and transparency.”  Prior to serving in government, Markell, now in his second term as Governor, was senior Vice President for Corporate Development for Nextel, having been one of the first fifteen people hired by the company.

Among those advocating for benefit corporation legislation across the country – including Connecticut - is the nonprofit organization behind the Certified B Corporation designation.  B Lab is a 501(c)3 nonprofit that serves a global movement of entrepreneurs using the power of business to solve social and environmental problems. B Lab serves these entrepreneurs through three interrelated initiatives that provide them the legal infrastructure and help them attract the customers, talent, and capital to scale.

Benefit Corporations and Certified B Corporations are distinct terms. They share much in common and have a few important differences. Certified B Corporation is a certification conferred by the nonprofit B Lab. Benefit corporation is a legal status administered by a state government, such as the case this summer in Delaware (and almost in Connecticut).  Benefit corporations do NOT need to be certified.

Certified B Corporations have been certified as having met a high standard of overall social and environmental performance, and as a result have access to a portfolio of services and support from B Lab that benefit corporations do not.  The B Lab website indicates more than 800 companies in 27 countries and 60 industries have earned the designation.

Overwhelming Support Spells Defeat for Creation of Social Benefit Businesses in CT

Despite being introduced with the backing of Governor Malloy, overwhelming support in the House of Representatives where it passed by a lopsided 128-12 on May 20, and co-sponsorship by the legislature’s four top leaders, legislation establishing the “benefit corporation” as a new type of corporate entity never came up for a vote in the State Senate.  And thus it died when the legislative session ended on Wednesday.

“Despite a great deal of effort, we lost. It is a sad day for Connecticut that we couldn't get something so unequivocally positive done. I personally find it hard not to be disheartened by the whole process, but I guess that's politics,” said Kate Emery, founder and CEO of reSET, the Social Enterprise Trust.

Similar legislation has already been passed and signed into law in California, Hawaii, Illinois, Louisiana, Massachusetts, Maryland, New Jersey, Pennsylvania, South Carolina, Vermont, and Virginia. It is pending in nine other states.

The bill (HB 6356) would have allowed businesses to legally incorporate as benefit corporations in Connecticut and was described as the most comprehensive piece of social enterprise legislation ever proposed in the United States.  It was designed to help social entrepreneurs protect their organization’s social mission, and provide a transparent, accessible, and simple mechanism for defining their business’s social goals.  Supporters said the legislation would also help drive job creation and increase the number of community-based partners committed to solving some of Connecticut’s most pressing social issues without requiring additional state funding.

Here’s how Hartford Courant business editor Dan Haar described the bill in a column the day prior to legislative adjournment:  “The bill has few if any opponents, it would make it easier for private firms to do some good in the world and it wouldn’t cost the state any money (okay $62,000, once, to reprogram the computers).

Firms organized this way, known as type-B corporations, would have a stated social goal beyond profits for the owners — public health, perhaps, or promoting the arts or restoring the environment or creating economic opportunity for disadvantaged people. It’s the kind of stuff nonprofits tend to do, but allowing for-profit companies to set up with a social purpose simply adds an avenue.”

The bill not only required benefit corporations to publicly state their social mission within the business’s articles of incorporation, but it also would have created a culture of accountability within Connecticut’s social enterprise community by requiring that those businesses publish an annual benefit report detailing the public benefit that they have actually created, and make that information publicly available on their website.

It also would have given owners of social enterprises the option of locking in their commitment to the social mission that their business is designed to serve by electing to adopt its legacy preservation clause after a waiting period of two years. This would allow shareholders to ensure that their commitment to the creation of public good is maintained, even if ownership of that company changes over time.  But it was not to be.

“We did everything we could possibly do and we had a lot of great people working very hard to make it happen,” Emery said in an email to supporters of reSET across the state.  “It was a well fought battle and sooner or later we'll get it passed but for now we will have to take heart in knowing we did all we could.”

The broad coalition of supporters – all of whom submitted testimony during a public hearing on the bill -  included AARP, the Connecticut Association of Nonprofits, the Connecticut Conference of Independent Colleges and AT&T.  As Haar noted this week, Connecticut Innovations, the state’s technology investment arm, and the state Department of Economic and Community Development both supported it actively.  The Connecticut Bar Association, which opposed a similar bill last year, also supported this year’s revised version.

Benefit Corporations are a new class of corporation that 1) creates a material positive impact on society and the environment; 2) expands fiduciary duty to require consideration of non-financial interests when making decisions; and 3) reports on its overall social and environmental performance using recognized third party standards.

In her public hearing testimony, state Economic and Community Development Commissioner Catherine Smith said Connecticut “is poised to realize many benefits” from passage of the bill, which would “leave a lasting social and financial impact on our state for years to come.”