Accent on Exports in Connecticut; State Supports Business Outreach Overseas

If Connecticut were a country, it would be the sixth-most productive in the world, according to the state’s annual report by the department of Economic and Community Development. A critical building block for economic productivity is exports, and a look at the data reveals some surprisingly positive statistics. The backdrop is offered by more than 700 global companies that have subsidiaries here, employing more than 100,000 people, the Organization for International Investment points out.  The state’s convenient access to a variety of transportation options all provides access; there were 4.6 million tons of cargo carried on Connecticut rails in 2015, for example, and 11.4 million tons of freight shipped through Connecticut ports in 2013.

The U.S. Commercial Service and the Connecticut District Export Council have teamed up to create a series of events throughout Connecticut marking the annual Connecticut Export Week. These events will take place during  April 24-28. Connecticut Export Week 2017 will educate businesses on initiating and or expanding their global market. Officials describe Connecticut  Export Week 2017 as the only free event of it’s kind in the nation.  A series of free events and webinars will be offered at locations around the state.  Topics include exporting to China, expanding to new markets, initial market research, how to develop and maintain an export network, and export logistics.

“The ease of global travel and freight movement by rail and highway makes Connecticut a prime location for domestic and international trade,” the report points out.  Leading exports include: Aerospace/Transportation Equipment, Non-Electrical Machinery, Computers and Electronics, Chemicals, Electrical Equipment, Fabricated Metals Production, and Primary Metal Manufacturing.

The top three trading partners for the state are Germany (10.8% of state exports), Canada (10.7%), France 12.7%, United Arab Emirates (10.4%) and Mexico (8.7%).

The Connecticut Department of Economic and Community Development (DECD) recently called on companies to apply for grants of up to $7,000 for a wide range of export-related activities. Funding is from the Small Business Administration (SBA), which awarded Connecticut a $244,000 grant to help increase state exports and the number of small businesses that export. The Department has provided more than 350 grant awards allowing Connecticut companies to participate in Medica, the leading international medical device trade show in Dusseldorf, Germany; Hannover Messe, the world’s largest industrial technology trade show in Hannover, Germany; and the international air shows in Farnborough, U.K. and Paris. Additionally, companies can request reimbursement for trade shows, trade missions and other export activities specific to their industry.

“These investments are helping Connecticut’s small businesses compete in the global economy,” said DECD commissioner Catherine Smith. “For example, grants have been provided to companies to help offset the costs of attending the Farnborough Air Show, one of the most important air shows in the world. Without these grants many of the suppliers and component manufacturers in Connecticut’s supply chain could not attend, missing a key opportunity to establish important contacts and build relationships with the leading aerospace contractors across the globe.”

New Facilities at Southern, UConn Stress Science Education, Careers

In the fall of 2015, Connecticut’s efforts to encourage science careers among students attending state colleges ramped up with the opening of a new Science and Laboratory Building on the campus of Southern Connecticut State University in New Haven, and the groundbreaking for a Science and Engineering Building at the University of Connecticut in Storrs. Both projects are back in the news.

Southern’s Academic Science & Laboratory Building has been certified LEED® Gold, placing it among the top one-third most sustainably designed certified buildings in the state.  The building saves the university 34 percent on its energy consumption and reduces water use by 20 percent.

Designed by Centerbrook Architects & Planners, the nearly 104,000-square-foot building exceeded expectations with its sustainable features. Originally targeted for LEED® Silver, the Academic Science & Laboratory Building scored 63 points on the LEED® scale to earn BD+C (Building Design + Construction) Gold.  The $49 million project was created entirely through state bonding, and predominantly features interactive laboratory spaces, with only two traditional lecture halls.

In Storrs, UConn’s new Engineering and Science Building is now 75 percent complete, and will be operational this fall.  It is expected to provide room for some of the university’s fastest growing research fields – systems genomics, biomedical sciences, robotics, cyber-physical systems (think drones) and virtual reality technology.

The five-story building will see researchers will move in to the new space this summer, beginning in July. It will be the first structure on the Storrs campus to utilize an “open lab” concept for research. The shared research space and open floor plan is intended to make it easier for scientists from different disciplines to collaborate, fostering innovation, according to UConn Today. The new structure will also give scientists access to a high-speed broadband network can process large amounts of data quickly – a necessity in many research fields today.

The building’s first floor is to include a Robotics and Controls Lab, Computational design Lab, Adaptive systems, Intelligence, and Mechatronics Lab and Manufacturing Systems Laboratory.  The second and third floors will feature the Institute for Systems Genomics, Center for Genome Innovation, Computational Biology Core and Microbial Analysis.  The top two floors will include labs focusing on Cellular Mechanics, Neuroengineering and Pain research, Interdisciplinary Mechanics, Membrane Separations, Advanced Solar Cells and Computational Atmospheric Chemistry.

Southern's Academic Science and Laboratory Building features Connecticut’s only center for nanotechnology and training labs for high performance computing, astronomy, cancer research, and molecular biology. It is also home to the Werth Center for Coastal and Marine Studies. Stressing the connection between education and employment, Southern notes that the Greater New Haven area is home to the second-largest cluster of biotechnology companies in New England.

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Number 9: CT Among Nation's Leaders in Innovation

Connecticut is the nations 9th most innovative state, according to a new analysis by the financial website WalletHub.  The state also placed sixth in research & development spending per capita and ninth in venture-capital funding per capita, the review of the 50 states found. Overall, the top 10 most innovative states included District of Columbia, Maryland, Massachusetts, California, Colorado, Washington, Virginia, Utah, Connecticut and New Hampshire.  New Jersey ranked #12 and New York was #16.  At the other end of the spectrum, the least innovative states were Louisiana, Mississippi and West Virginia.

In individual categories, Connecticut placed:

• 13^th – Share of STEM Professionals
• 14^th – Share of Science & Engineering Graduates Aged 25+
• 15^th – Projected STEM-Job Demand by 2020
• 15^th – Avg. Internet Speed
• 24^th – Share of Technology Companies
• 27^th – Eighth-Grade Math & Science Performance

WalletHub’s analysts compared the 50 states and the District of Columbia across two key dimensions, “Human Capital” and “Innovation Environment,” evaluating those dimensions using 18 relevant metrics.

The Norwalk Hour is reporting that Connecticut Public Television is moving forward with its plan to create an innovation and tech center along Wall Street in the heart of Norwalk. The project would require bonding from the state, with Connecticut Public Broadcasting borrowing another $5 million to $7 million, Hearst Connecticut Media learned last October.

The Connecticut Technology Council's annual Women of Innovation event takes place next week, on March 29.  The Women of Innovation event seeks to create :"a growing network of women in the “trenches” of STEM." Finalists are the scientists, researchers, academics, manufacturers, student leaders, drafters, entrepreneurs, and technicians "who create tomorrow’s advancements through their tireless efforts today," the organization said.  The awards will recognize Academic Innovation and Leadership at the High School and College level, Community Innovation and Leadership, Entrepreneurial Innovation and Leadership and Research and Innovation Leadership, as well as innovation and leadership at small and large businesses.

Data used to create the ranking were collected from U.S. Census Bureau, Bureau of Labor Statistics, National Science Foundation, National Center for Education Statistics, Georgetown University’s Center on Education and the Workforce, United States Patent and Trademark Office, Ewing Marion Kauffman Foundation, Tax Foundation, Consumer Technology Association, Akamai Technologies, U.S. Cluster Mapping Project and National Venture Capital Association.

Higher Ed Panel on Innovation and Entrepreneurship Seeks to Map Statewide Plan

The charge of the state's Higher Education Innovation and Entrepreneurship Initiative is to strengthen innovation and entrepreneurship within Connecticut’s public and private higher education institutions while fostering collaboration and providing economic value to Connecticut. The Higher Education Innovation & Entrepreneurship Working Group, in accordance with Public Act 16-3, met in December, and again in mid-February, and aims to complete its work in May to develop a plan to support innovation and entrepreneurship.  Joanne Berger-Sweeney, Trinity College president and professor of neuroscience, and Mark E. Ojakian, president of the Connecticut State Colleges and Universities system (CSCU), were selected in December to co-chair the working group that includes public and independent institutions of higher education from throughout the state.

The group, which is staffed by CTNext, will send its strategic roadmap to CTNext’s board of directors for approval. Once the plan is approved, the board will elect an advisory committee made up of public and private school officials and student representatives. This new committee will advise the CTNext board of directors as it deploys $2 million each year for the next five years to projects and initiatives that fit the priorities identified in the strategic road map, according to the CTNext website.

The working group is tasked with developing a master plan for fostering innovation and entrepreneurship at in-state public and independent colleges and universities. The master plan will:

1. address opportunities and risks to innovation and entrepreneurship resulting from existing and emergent conditions affecting entrepreneurial programs and initiatives at institutions of higher education;
2. assess the scope and scale of existing entrepreneurial programs and initiatives at such institutions in the context of best practices at state and national institutions of higher education that are leaders in innovation and entrepreneurship;
3. recommend initiatives that facilitate collaboration and cooperation among institutions of higher education on projects that address and strengthen innovation and entrepreneurship at such institutions;
4. provide for the establishment of a state-wide intercollegiate business plan competition; and
5. identify funding priorities for higher education entrepreneurship grants-in-aid pursuant for projects that expand and enhance entrepreneurial programs and initiatives or projects involving partnerships among institutions of higher education.

“As co-chair, I look forward to working closely with colleagues from across Connecticut,” said Berger-Sweeney. “Our strategic planning to support entrepreneurship and innovation is critical to the economic vitality and future of the state.”

“I’m excited to work with all our presidents, both public and private, to find ways to nurture innovation and entrepreneurship at our institutions,” said CSCU President Ojakian. “Our mission is help our students turn their creative ideas into businesses that will grow and thrive in Connecticut.”

During the working group’s December meeting, which ran just over an hour, participants from 27 colleges and universities, including the presidents of most of the institutions, discussed the challenges and opportunities to advance innovation and entrepreneurship on their campuses and in the state.

According to the meeting minutes, there was discussion on how best to allocate $10 million ($2 million/year for 5 years), centered on determining a strategy to leverage the funds.  Participants suggested a focus on partnerships, and urged efforts to “think from the beginning about how to connect people (broadly) to the jobs that will be created,” along with a “commitment to creating a whole that is greater than the sum of the parts.”  Education leaders also noted that Connecticut “is relatively more highly regulated than other states in public education,” which could make the effort “more difficult.”

The college and university leaders also listed an array of assets that exist in Connecticut which could spur their efforts.  Among those cited were:

• Strong medical/bio-science institutions
• Long standing leader in advanced manufacturing
• Lower cost of real estate relative to Cambridge and Silicon Valley
• Leadership in aerospace
• International linkages/partnerships
• Prime location between NYC and Boston

Also mentioned was the fact that Connecticut has “a lot of empty buildings” in “legacy cities ripe for redevelopment.”  Connecticut’s status as a financial capital, and the potential collective political force of higher education leadership were also noted as potential pluses.

Late last year, CTNext issued an RFP for “qualified independent higher education institutions, policy institutes, or research organizations to conduct certain analyses of innovation and entrepreneurship in the state.”  The assignment proposed included: “a baseline assessment of the state’s innovation and entrepreneurship based on certain program measures,” including:

1. the increase or decrease in the state’s (a) start-up businesses, including growth stage start-ups; (b) software developers; and (c) serial entrepreneurs (i.e. those having brought at least one start-up business to venture capital funding by an institutional investor);
2.  job growth within growth-stage businesses;
3. the amount of private venture capital invested in start-up and growth-stage businesses;
4. employee turnover at start-up and growth-stage businesses;
5. the amount of entrepreneurship and innovation research funded by higher education institutions in the state;
6.  the rate at which businesses enter and leave the state; and
7. the degree to which the state’s (a) hiring rate exceeds its job creation rate and (b) employment separation rate exceeds its job loss rate.

CTNext is Connecticut’s innovation ecosystem designed to build a more robust community of entrepreneurs and to accelerate early-stage growth by providing access to talent, space, industry expertise, services, skill development, and capital to foster innovation and create jobs in Connecticut.  CTNext is a wholly-owned subsidiary of Connecticut Innovations.

Photos:  Trinity College President  Joanne Berger-Sweeney, CSCU President Mark Ojakian; February meeting of working group.  

10 CT Companies Are Finalists at Entrepreneur Innovation Awards, Three Receive Funds to Boost Growth

Fledgling entrepreneurial businesses in West Hartford, New Haven and Marlborough will be getting a financial boost in their efforts to gain a foothold in their respective industries. CTNext, Connecticut’s go-to resource for entrepreneurial support, announced the three winners of the most recent Entrepreneur Innovation Awards (EIA), held this month at the Connecticut Historical Society in Hartford.

The finalists, Connecticut-based companies and entrepreneurs, presented their innovative project ideas to a panel of entrepreneurial experts for an opportunity to secure $10,000 awards to help support business growth. The top winners, to receive $10,000 awards, were:

• GinzVelo Hybrid Electric Cycles (West Hartford): A personal transportation solution powered by pedaling or the electric motor to effortlessly travel up to 100 miles to and from your destination.
• Sweetflexx (Marlborough): Resistance technology active wear enables muscles to work more efficiently, resulting in a higher rate of calorie burn.  McCullough Shriver founded Sweetflexx. (see video below)
• Verb Energy Manufacturing (New Haven): A healthy, caffeinated, energy bar that combines your cup of coffee and an energy bar for less cost. Verb Energy  was founded in 2016 by four Yale students.

The “judges’ favorite” went to Sweetflexx, and the “crowd favorite” was awarded to Verb Energy.  Each business will receive an additional $2,000.

The other finalists included:

• Global Hydro Pneumatic High Tech Inventions (Shelton) Developing an all-wheel hydraulic power jack system that is safer and less damaging to cars.
• Loki (Woodbridge) Creating an app that gives users control over their own multi-perspective visual experience.
• Mobile Sense Technologies (Farmington) Engineering an “off-the-chest” ECG monitor for 24/7 management of cardiac arrhythmias.
• Obvia (West Hartford) Creating a lightweight, dual-winglet blade for small to mid-sized wind turbines that is both energy- and cost-efficient.
• Olie Robotics (Manchester) Building a professional robotic vacuum that cleans offices at a third of the cost with no labor hassles.
• PennSMART (North Branford) Producing a universal retrofit for lighting fixtures that allows surveillance and sends alert notifications.
• Trekeffect (Niantic) Creating an app that allows individuals to sell their travel itineraries.

“The Entrepreneur Innovation Awards seek to give new and growing companies the support they need to thrive,” said Glendowlyn Thames, executive director of CTNext. “Through these events, we have seen a number of incredible companies that are changing their respective industries and creating a positive economic impact in our state. These grants continue to support companies at the earliest stages of growth and to drive them to the next level of development.”

To be eligible for an EIA, startups must be Connecticut-based, registered as CTNext members, and looking to conduct growth-related activities to help advance their business. Project examples include but are not limited to prototyping, performance testing, compliance testing, product or service development, market research, licensing and more.

A full list of criteria can be found on the application page. For more information on the program or to apply, please visit: http://ctnext.com/entrepreneur-innovation-awards/.  CTNext launched in 2012 and has more than 1,500 members in its network, since initiating the awards program in February 2014 CTNext has awarded $544,000 to 52 companies.

The goal of CTNext is to build a more robust community of entrepreneurs and to accelerate startup growth by providing access to talent, space, industry expertise, services, skill development and capital to foster innovation and create jobs for people in Connecticut.

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Norwalk, Stamford Gain New Businesses, Taking From Each Other

Octagon Inc., a sports and entertainment marketing and talent management agency, is relocating its headquarters to the Shippan Landing complex in Stamford. The company, which is moving from Norwalk, has signed an 11-year lease to occupy 57,009 square feet across the entire third floor and a section of the second floor of the property at 290 Harbor Drive along the Stamford waterfront. The move apparently comes without state financial incentives, and comes months after another corporate citizen made the reverse move – from Stamford to Norwalk – with a boost from state incentives.  Less than 15 miles and 15 minutes apart, two of Fairfield County’s leading cities are experiencing the corporate version of “Trading Places.”

Crius Energy, through its wholly owned subsidiary Regional Energy Holdings, announced plans last year to move its headquarters from Stamford to Norwalk, placing 200 jobs in the city and committing to add 225 more over the next four years, according to an announcement in May from the Governor’s Office.

Officials said the company – launched in Connecticut – has become one of the largest independent energy retailers in the United States, supplying electricity, natural gas and solar energy products to more than 900,000 customers across 19 states and the District of Columbia, including 100,000 in Connecticut. According to officials, Crius also has operations in Florida, Texas and Australia.  They had outgrown their Stamford facility, which led to plans for a $29 million project in Norwalk, to include the renovation of 48,000 square feet of an existing building. 

To encourage the move, the state Department of Economic and Community Development (DECD) said it would provide a 10-year, $8 million low-interest loan to support the project, funding that can be used for fixtures and equipment and leasehold improvements. Crius is also eligible for up to $2 million in tax credits through the Urban and Industrial Sites Reinvestment Tax Credit Program, as well as a $100,000 grant to train employees, according to state officials.

The Crius Energy website points out that “Although based in Connecticut, many members of our leadership team have relocated great distances to become a part of Crius Energy. Together, they bring more than a century of combined industry and functional expertise as well as a deep-rooted passion for transforming the retail energy sector.”

It was a year and a half ago, in May 2015, that the first lease signing was announced for the then newly-renovated five story, 185,000 s/f office building within the 17-acre Shippan Landing waterfront office park in Stamford. That tenant was Stamford-based Workpoint, a provider of co-working environments geared to the needs of media firms along with independents and professionals.

Published reports indicated that since being acquired in 2012 by George Comfort & Sons in a partnership venture with Angelo Gordon & Company, the six-building, 758,000 s/f office park, formerly known as Harbor Plaza, saw an extensive repositioning and modernization program, which was then nearing completion. Workpoint leased a total of 15,173 s/f, including a 1,000 s/f multicamera studio with green screen, control room, and editing facilities on the building’s second floor, according to published reports at the time.

“Shippan Landing continues to be the preferred destination for some of the nation’s top creative companies and we are pleased to welcome Octagon to our tenant roster,” said Peter S. Duncan, president and CEO of George Comfort & Sons.  Among Octagon’s many clients are household names from the sports world - Stephen Curry of the Golden State Warriors, members of the World Series champion Chicago Cubs and other major league players, current and retired, and Olympic gymnast Simone Biles.

Shippan Point offers what the company describes as “truly is the best business location in the Stamford area,” with “spectacular grounds and magical stretching views.”

Back in 2013, the state Bond Commission approved $1 million in borrowing to help an emergency home repair company move its headquarters from Stamford to Norwalk.  The bonding was aimed at assisting the HomeServe USA Corporation in relocating its headquarters as part of an agreement to create 130 jobs and maintain another 109. In addition to a $1 million grant, the company was also eligible for a $3 million, partially forgivable, loan and up to $5 million in tax credits, local media reported.  The company’s customer call center is located in Tennessee.

And last May, the State Bond Commission approved $22 million in grants and loans for the world's largest hedge fund despite what press reports described as bipartisan complaints that the wealthy company can afford the move without state incentives.  The commission voted 7-2 to award the package to Bridgewater Associates, a financial industry powerhouse operated by Greenwich billionaire Ray Dalio, one of the nation's wealthiest individuals.

At the time, state officials indicated that the financial package helped to prevent the company from potentially relocating from Connecticut to nearby Westchester, N.Y.  The money was expected to be used to renovate and expand the firm's Westport headquarters, along with operations in Wilton and Norwalk, published reports explained. In addition to the loan, Bridgewater was said to also be eligible for two grants: $3 million for energy-efficiency upgrades and $2 million for job-training efforts.  The state apparently initially offered Bridgewater $130 million in loans and grants but the amount was scaled back after the company scrapped plans to build a new corporate complex in Stamford, south of I-95, in the face of local opposition, reports indicated.

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Legislatures Consider Changes in Transportation Safety in CT, Nationwide

The National Conference of State Legislatures (NCSL), in cooperation with the National Highway Traffic Safety Administration, is tracking legislation on a range of traffic safety subjects that have been introduced in the 50 states and the District of Columbia – and is providing updates on the organization’s website.  The site reflects 14 proposed bills in Connecticut, being considered in the General Assembly session that began last month.   Traffic safety topics being tracked nationwide include: Aggressive Driving, Automated Enforcement/Photo Monitoring, Child Passenger Protection, Distracted Driving, Driver’s Licensing, Impaired Driving, Motorcycle Safety, Pedestrian and Bicycle Safety, School Bus Safety, Seatbelts and Occupant Protection, Senior Drivers Issues, Slow-Medium speed vehicles, Speed Limits, and Teen Driver Issues.

Among the proposals being considered in Connecticut is one that would require three-point seat safety belts for school buses and require passengers of a school bus to wear seat safety belts.  A similar proposal would require three-point seat safety belts for school buses that are model year 2019 or newer.  NCSL reports that 20 state legislatures are considering a variety of school bus safety proposals. 

Three proposals would increase fines for distracted driving offenses, including texting or using a hand-held mobile telephone while driving, and one calls for additional funds to be appropriated to the state Department of Emergency Services and Public Protection to “combat distracted driving.”  Connecticut is one of 14 states that have seen distracted driving bills suggested. 

Legislative proposals also include one that would mandate the use of helmets by motorcycle operators and passengers, and another that would regulate the operation of high-speed and low-speed electric bicycles in the state. Twenty-six states in addition to Connecticut have motorcycle safely proposals under consideration.

Members of the legislature’s Planning and Development Committee will consider proposals that call for modifications to urban street design guidelines, in order to “improve the safety, economic life and vibrancy of urban streets.”

Among the nation’s states, the largest number of legislative proposals relate to impaired driving, followed by motorcycle safety, pedestrian and bike safety, drivers licensing, drivers licensing, and school bus safety.

Forty-seven states have begun their 2017 legislative sessions.

Nominations Open for State's First Connecticut Entrepreneur Awards

A consortium of public and private associations and agencies, higher education institutions and entrepreneur-assisting nonprofit and for-profit organizations is launching the CT Entrepreneur Awards, designed to celebrate “the entrepreneurs and support system that make Connecticut work.” The inaugural awards, to be presented this spring, will recognize a variety of individuals and organizations that connect, collaborate and communicate amongst each other to help entrepreneurs succeed, according to organizers of the initiative. Nominations are now open for the CT Entrepreneur Awards, which will recognize the individuals and organizations that are instrumental in running the state’s ecosystem. From community builders and events to government officials and advisors that continuously support entrepreneurs, the awards are intended to highlight local leaders “that make a difference.”

Award categories include: Venture, Community Builder, Program, Space, Event, Education, Funding, Corporate/Institutional, and Government.

The CT Entrepreneur Awards are described as “community driven,” reflecting the easy online nomination form. The nine main categories were established in an effort to gather and honor “a broad array of leaders that create the foundation for entrepreneurs to succeed.” Individuals are asked “to nominate as many leaders that deserve recognition for their work in the community.”

During January, nominations are being sought and collected. From that broad list, the consortium will narrow the field and hold final online voting in February. Plans are to hold an awards in late March or early April, with event serving to “bring together all of the people dedicated to supporting entrepreneurs throughout the state.”

The CT Entrepreneur Awards are a product of the CT Entrepreneur Event Organizers consortium, an all-volunteer cooperative effort of people and organizations that host and facilitate entrepreneur facing events in throughout the state.  Proceeds from the CT Entrepreneur Awards will be directed to fund the statewide Entrepreneur Events Calendar, www.ctevents.co.

Consortium members include Accelerated Ventures, Axis 901, Baypath University, BEACON, Bridgeport Innovation Center, Business New Haven, CBIA, CCSU, ColoDesk.com, Congressman Jim Himes, Connecticut Economic Resource Center, Inc., Connecticut Innovations, CTNEXT, Connecticut Small Business Development Center, Connecticut Technology Council, CountMeIn!Hartford, Crossroads Venture Group, CT Entrepreneur Meetup, CT Hackerspace, CT Invention Convention, CT User Experience, Design Professionals CT ,Women's Small Business Development Council, CURE, and Danbury Hackerspace.

Consortium members also include the state Department of Economic & Community Development, Digital Surgeons, Economic Development Corp of New Haven, Enhanced Capital, Entrepreneurship Foundation, Fairfield University, Founderstood, Goodwin College, Hartford Business Journal, Help CT Grow, Innovate Hartford, Innovation Destination: Hartford, Launch EZ, LEARN TO PROGRAM MEDIA, LootScout, M5 Information Services, Madison Mott, MakeHaven, MakerspaceCT, Metro Hartford Alliance, Miles Finch Innovation, and MJX Asset Management

Also participating in support of the initiative are National Invention Convention, New Haven Chamber of Commerce, New Haven Lean Startup Meetup, Remarkable Technologies, reSET, SCORE – Hartford, SCORE - Western Connecticut, Senator Chris Murphy’s office, Spark, SPARK MakerSpace, Stamford Innovation Center, Stamford Tech Meetup, Startup Grind - New Haven, Startup Hartford, TAN2000 International, Test My Pitch, The Business Council of Fairfield County, The Diversion, The Grove, The Refinery, Thrise, Town of Old Saybrook, and Transactions Marketing, Inc.

Members also include the U.S. Small Business Administration, University of Connecticut, UConn - Connecticut Center for Entrepreneurship and Innovation, UConn - Entrepreneurship and Innovation Consortium, UConn - School of Business, UConn - School of Engineering, UConn - Technology Incubation Program, University of Hartford - Entrepreneurial Center, University of Hartford - Women's Business Center at Entrepreneurial Center, University of New Haven - Tagliatela College of Engineering, Wesleyan University, Western Connecticut State University, Westfair Communications, Whitneyville Cultural Commons, Yale Center for Molecular Discovery, Yale Entrepreneurial Institute, Yale Office of Cooperative Research & Yale Entrepreneurial Institute, Yale School of Management, and Yale University.

Seven CT Businesses Among 500 Fastest Growing Tech Companies in US

Where in Connecticut are the fastest growing technology companies?  New Haven, Branford, Trumbull, Madison, Norwalk, and Farmington. Seven Connecticut companies earned a ranking rank on the recently released 2016 Technology Fast 500 rankings of the fastest-growing tech companies in North America, compiled by professional-services firm Deloitte.  That’s the same number of Connecticut firms on last year’s list.

Four of the state’s representatives produce software, aligning with the dominance of that sector, with some 58 percent of this year’s Fast 500 companies in software. Two of the Connecticut companies work in biotechnology, which comprised the second-most represented segment on the list, covering 13 percent of firms.

New Haven-based Achillion Pharmaceuticals ranked highest among Connecticut companies, at No. 43, posting 2,436 percent growth. It was ranked #12 among biotechnology/Pharmaceutical companies. Achillion Pharmaceuticals, Inc. is a "science-driven, patient-focused company leveraging its strengths across the continuum from drug discovery to commercialization to provide better treatments for people with serious diseases," according to the company website.  

Following at No. 239, Farmington-based Evariant Software recorded a 303 percent increase. Next came HPOne, a Trumbull health-insurance solutions firm, which recorded 199 percent growth.  Madison's Clarity Software Solutions was No. 385, Norwalk-based software company etouches ranked No. 461, with 132 percent growth.  Rounding out the Connecticut tech firms earning a slot among the top 500 were Branford-based Core Infomatics at No. 469 and Alexion Pharmaceuticals, now headquartered in New Haven, at No. 473.

New York City and California firms accounted for nine of the top 10 companies on the list. By region, the San Franciso Bay area had 20 percent of the companies, New York 17 percent,  Los Angeles 8 percent,  Washington 6 percent and New England 5 percent.

Los Angeles-based Loot Crate, which delivers entertainment and pop culture-themed collectibles, ranked No. 1 overall, with 66,661 percent growth between 2012 and 2015. Founded in 2012, Loot Crate has more than 650,000 subscribers worldwide in 35 countries. The ranking summary points out that "Loot Crate’s position at the top of this year’s list showcases how innovation isn’t always about new technology and invention, but also about ingenuity, the recombining of existing assets, and know-how in new ways to maximize value."

Yieldbot, a New York City-based company focused on media, ranked No. 2.

"Amid a fierce business climate, there seems to be no shortage of new and established companies that are unlocking a seemingly unlimited potential for growth and advancement through technology’s continued disruption and proliferation across industries," said Sandra Shirai, principal, Deloitte Consulting LLP and US Technology, Media, & Telecommunications leader.

The focus of the Connecticut firms that made this year’s list reflected the overall composition of the rankings, which were based on companies’ revenue growth between 2012 and 2015.  Software continues to have the greatest impact across technology sectors, representing 58 percent of the entire list and five of the top 10 winners overall.

"Combining technological innovation, entrepreneurship, and rapid growth, Fast 500 companies—large, small, public, and private—hail from cities far and wide across North America and are disrupting the technology industry," the introduction to the rankings emphasized.

Rate of Success Obtaining Venture Capital is High in Hartford, Study Finds

A look at the nation’s 50 largest metropolitan areas to see how entrepreneurs have fared in their quests to secure money from venture capitalists, angel investors, and online crowds brought a somewhat surprising result – among the cities mentioned as ranking high in venture funding success rates was Hartford. Connecticut’s Capitol was listed among a handful of cities with success rates for businesses seeking venture capital that “are about twice as high as the national average.” According to a new report issued this month by the Kauffman Foundation, roughly $68 billion was invested in venture capital (VC) deals in the United States in 2014 and 7,878 employer businesses reported receiving venture capital funds. Thirty percent of those recipients were located in just four metro areas: New York, Los Angeles, San Francisco, and Boston. The national average was 0.2%.

Among the metro areas that rank highly in terms of those venture funding success rates, according to the report “Trends in Venture Capital, Angel Investing and Crowdfunding,” include: San Francisco, CA (0.8%), San Jose, CA (0.8%), Boston, MA (0.5%), Hartford, CT (0.5%), Memphis, TN (0.4%), Minneapolis, MN (0.4%), Philadelphia, PA, (0.4%), Richmond, VA (0.4%), Washington, D.C. (0.4%). Among the lowest ranked of the 50 largest metropolitan regions in the nation, at 0.1 percent, were Baltimore, Denver, Jacksonville, Las Vegas, Orlando, Riverside, and Tampa.

The report noted that “Some perhaps unlikely metro areas rank highly in terms of those venture funding success rates: Hartford, Memphis, Richmond, and Buffalo. This doesn’t necessarily mean that there are higher quality firms there, and, of course, the volume of firms seeking VC is smaller…And, these data don’t mean that all the funding came from local sources: venture capital firms in New York could be investing in Hartford businesses. But these numbers lend credence to arguments…that high-quality deals can be found everywhere, and that firms in these regions can succeed in raising equity capital.”

While 10.3 percent of entrepreneurs report using personal credit cards when starting their business, nationally, only 0.6 percent initially received venture capital, the analysis found.

The metros with the highest percentage of firms receiving venture capital funding when starting include: San Jose (2.4%), San Francisco (1.5%), Salt Lake City (1.3%), Austin (1.2%), Baltimore (1.1%), Birmingham (1.1%), and Nashville (1.1%).

According to the report, based on the 2014 Annual Survey of Entrepreneurs (ASE), “the primary sources of initial financing for new businesses in the United States are: personal and family savings, bank business loans, and personal credit cards.”  The report notes, however, that “entrepreneurs also tap other sources of funding, including venture capital, which “can be disproportionately important for business growth.”

The ASE, conducted by the U.S. Census Bureau, is the largest annual survey of American entrepreneurs ever done, and is done in a public-private partnership between the Census Bureau, the Kauffman Foundation, and the Minority Business Development Agency. The ASE samples approximately 290,000 employer businesses across all U.S. geographies and demographics, the report explained.

The top metropolitan statistical area for crowdfunding success in 2014 was Charlotte; for angel investing, San Jose led the way.  The report concludes that the concentration of venture capital firms in California, Massachusetts, and New York, “is well-correlated with the relative concentration of firms that receive VC investments.” Crowdfunding campaigns in Minneapolis and Oklahoma City, the report indicates, “may not be entirely due to local funders.”

“The ASE data add quantitative confirmation to what we know from other sources: high-quality entrepreneurs can be found—and can get funding—in nearly every corner of the United States.”

Including Hartford.