Presentation to:

Inventors Association of Connecticut

Peter V. LongoPresident and Executive Director

March 23, 2010

Investing in Connecticut

CI is the state of Connecticut’s venture capital arm.

CI grows high-tech companies and jobs in Connecticut by providing:

Strong Track RecordExpertise

Access to Capital

Talent AdvisorsStrategic Partners

Our Franchise

Quasi-public authority created in 1989 Connecticut’s most active VC funder of early- and

seed-stage high-tech companies Independent board of directors with experts from

business, technology, academia and government Independence and agility make us innovative and

responsive to market needs Private sector principles and practices to achieve

public sector goals

Our Model

Breadth of technology initiatives:□ Pre-Seed support services□ Seed stage investments□ Equity investments□ Infrastructure financing□ Newly launched Clean Tech Fund □ SBIR Office□ Stem Cell Research Program and CT Clean Energy Fund

Guided and advised by several industry-specific advisory boards composed of well-known experts

Unique and successful model that has become the model of other states

Funds and Initiatives

CI

Eli Whitney Fund

CT Bioseed Fund

Bioscience Facilities Fund

CTech

Seed Investment Fund

CT Clean Tech Fund

Pre-Seed Support Services

CT SBIR

CT Clean Energy Fund

CT Stem Cell Research Fund

Early Stage Initiatives Pre-Seed Support Services

□ $1m commitment; focuses on innovation and turning entrepreneurs’ ideas into companies

CTech□ Technology business incubator that provides access to a broad network

of resources

Seed Investment Fund□ $4m fund focusing on non-bioscience technology companies

Connecticut BioSeed Fund□ $5m fund created with CI investment returns to get companies to “the

next level”

SBIR Office□ Helps high-tech small businesses compete and win federal awards□ Facilitates collaboration between industry, academia, government

Eli Whitney Fund

Invested $131.2 million in 90 companies through December 2010; $125.3 million from Eli Whitney Fund

Leveraged over $1 billion of private capital Achieved 42 successful investment exits

□ IPOs – 14□ Sales – 28

Current portfolio: 40 companies (34 Eli Whitney) IRR 19.89% through FY 09

Eli Whitney FundInvestment Criteria

Sustainable competitive advantage Beta-stage prototype Solid management team Headquarters, technology functions and majority of

operations in Connecticut Growing employee presence in Connecticut Ability to obtain funds from other investors

Clean Tech Fund $9 million fund Partnership: CI, DECD, CCEF Invests in seed- and early-stage companies focused on

innovations that conserve energy and resources, protect the environment or eliminate harmful waste.

Technologies include:□ Renewable energy generation □ Energy efficiency□ Environmental remediation□ Clean water□ Renewable fuel

4 investments closed

Current Portfolio Technology Distribution

Bioscience

New Haven, CT

Information Technology

Milford, CT

Photonics

East Granby, CT

Energy & Environmental

Sandy Hook, CT

Pre-Seed Support Services Program

Created with $1 million commitment Focuses on innovation and new company formation Helps high-tech entrepreneurs turn ideas into

companies by providing:□ Mentoring□ Advisory services□ Limited funding when needed

Pre-Seed Support Services Program

Advisory Services□ Intellectual property reviews□ Technology reviews□ Market analyses□ Market entry strategies□ Business plan reviews and development

CTech – technology business accelerator

Technology business accelerator Houses startup technology companies Provides access to a broad network of resources

□ Other entrepreneurs□ Investors □ Business advisors□ Technologists

Brown bag lunch seminars Public/private collaborate effort

Seed Investment Fund

$4 million fund Invested in 6 companies to date including 2 relocations Non-bioscience technology companies Pre-Series A stage of development Companies must have:

□ Proprietary technology□ Sustainable competitive advantage□ Near completion beta product□ “Skin in the game”

Connecticut BioSeed Fund

$5 million fund created with CI investment returns Outstanding, highly experienced advisory board Invested $1.7 million Very high risk deals Strong pipeline opportunities

SBIR Office

CT Small Business Innovation Research (SBIR) Office□ Helps high-tech small businesses compete for and win federal

SBIR/STTR awards□ Facilitates commercialization through collaborations (e.g. Phase III)□ Matches strategic partners

– Partner with a Prime– Matches for Money– Partner with a Professor– Careers for Engineers– Collaborate to Innovate

□ Designs conferences – e.g. 2010 National SBIR Conference in Hartford, April 20-23 (www.SBIRnational.com)

Program Administration Connecticut Clean Energy Fund

□ Ratepayer fund created to foster the growth and development of clean energy installations and awareness across Connecticut

□ Extraordinary economic development opportunity

BioScience Facilities Fund□ Helps startups deal with the expense of wet laboratory space□ $34.5 million funded - debt with warrants□ 350,000+ square feet of new lab and related space created□ 10,600 square feet transitional lab space

CT Stem Cell Research Program□ State initiative managed by DPH□ Advancement of human embryonic stem cell research□ Commercialization opportunities

Connecticut Clean Energy Fund

Goals□ Develop a diverse supply of installed clean energy resources

□ Foster the growth, development and commercialization of clean energy technologies

□ Stimulate demand for clean, renewable energy by increasing consumer awareness

Recent Investment Accomplishments

FY 2009 - invested $9.04 million in 17 companies 3Q FY 2010 - approved $9.75 million in 17 companies Current Pipeline

□ 29 companies□ $95.5 million ($31.2 million from CI)

Companies Funded

3

11

1817

Total Invested

Million

s

$1.49

$6.51

$11.54

$9.0414(app.)

$6.11 ( app.)

Recruitment

California Massachusetts

New York

New York

New YorkNew Jersey

United Kingdom

France

Canada

Virginia

Impact on ConnecticutFY95 through FY08

For each dollar CI invested…□ …the state of Connecticut realized $1.97 in net state revenue.

□ …Connecticut’s gross domestic product increased $23.80.

□ …personal income in Connecticut increased $14.30.

For each dollar the state of Connecticut originally invested in CI, CI and its investment partners leveraged $9.43.

CI’s cumulative investment of $152 million in 84 companies generated new economic activity that produced $2.17 billion measured in terms of cumulative personal income and $3.6 billion measured in terms of gross domestic product.

Connecticut is nearly $15 million richer each year because of CI’s investments in its portfolio companies during this period.

CI’s investments added on average 1,610 jobs per year; 563 direct and 1,046 indirect or induced

Looking for:

Technology entrepreneurs Student entrepreneurs Technology startups Expanding technology companies

www.ctinnovations.com

Connecticut Innovations

200 Corporate Place, 3rd Floor

Rocky Hill, CT 06067

860-563-5851