state of connecticut statistics
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Presentation by Liddy Karter - Executive Director, the Connecticut Venture Group. Presented at the April 12, 2011 Crossroads Connections Breakfast - Exits & Trends - Stamford, CT.Liddy serves as a Managing Director of Enhanced Capital and, as Executive Director of the Connecticut Venture Group, is responsible for overseeing investment activity in Connecticut. She brings experience in clean tech venture capital, corporate finance, and early stage company management. Prior to joining Enhanced Capital, she was a Managing Partner at IRON Ventures, a venture fund investing in sustainable business ventures enabling symbiotic reuse of energy, industrial material and water.Prior to IRON Ventures, Liddy was CEO of Resource Recovery Systems, Inc., a nationwide recycling company and CFO of Netkey, Inc., an ecommerce software company. Prior to that, she was Vice President of the Financial Services Group at Morgan Stanley. Liddy is active in angel investing and serves on the Board of the Angel Capital Association. She is Executive Director of the Connecticut Venture Group, a statewide trade association for venture funds in Connecticut and serves as a Mentor at the Yale Entrepreneurial Institute.TRANSCRIPT
Venture In CT?
1
Liddy KarterExecutive Director,
Connecticut Venture Group [email protected]
203 376 7958
CT Increasing $ Managed
9
1985 1995 2005 20100%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
CAMANYCT
Strategic Mission
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1. Get more VC $ invested in CT2. Increase VC $ managed in CT3. Increase # of VC backed successes
Vision, Mission and Brand
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The explicit mission:
“To assist the development of
high growth enterprises through the promotion of capital formation
in Connecticut”
Role of State Government
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– Reach out to VC principals • Help them• Thank them
– Provide university support for R&D– Support VC process– Limit regulation for small companies– Target Incentives to High Potential Companies
VC Tax Credits
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State $Cap Individual Cap Credit %
Indiana $ 12,500,000 $ 500,000 20%
Wisconsin $ 20,000,000 25%
Maine $ 1,000,000 40%
http://iedc.in.gov/entrepreneurship/venture-capital-investment-tax-credithttp://www.commerce.state.wi.us/bd/BD-Act255-venturecapitalseedfund.htmlhttp://www.famemaine.com/files/Pages/business/businesses/equity_capital/Seed_Capital.aspx
Role of Federal Government
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– Improve Capital Access • Stabilize tax treatment of VC Funds• Streamline IPO/reporting Process
– Increase Support for Basic R&D– Improve VISA rules– Support VC process with tax incentives
• Capital Gains treatment- permanent• Matching grants for Commercialization
– Limit regulation for small companies
Potential for Job Growth
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– $25,000 of venture investment = 1 job– If CT performed like MA in 2010 we would have
had 18,000 additional jobs; about 11% of the unemployed in CT.
• According to Indeed.com and salary.com the average wage in Venture backed companies is $89k/yr. Average wage in CT is $76k.
• $1.6B in CT wages• Income Tax Revenues of $82MM/year
CVG Outreach Plan
VC Breakfast and University Speaker
Series
Crossroads Series – Ideas and Capital
(3) Crossroads Cluster Events
Regional Chapters – Venture Connection Breakfast Series
(and special events)Regional Reverse Funding Events –
connected to Crossroads and Venture Connection
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1 - VCs
2 – The State2a – High Po Companies
3 – The Community
4 - Entrepreneurs
Objectives
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– Increase Successful deployment of Venture Capital in CT
– Resources• Venture Principals• Venture Support community• State and Federal Government• Universities• Investors• Entrepreneurs
Next steps for CVG and CT
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– Prioritize legislative agenda for Capital Access– Annual meeting with VC principals and Governor– Create University VC connections -speakers– CT link with Start-Up America and Office of
Innovation and Entrepreneurship – appoint team from State, University and VC
Sources and Links
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– Office of Innovation and Entrepreneurship• http://www.commerce.gov/news/press-releases/2009/09/24/commerce-secreta
ry-locke-announces-new-commerce-initiatives-foster-in
– National Venture Capital Association• www.nvca.org• 2011 yearbook- Thomson Reuters
– PWC Money Tree• www.pwcmoneytree.com
– WI Dept of Commerce• www.commerce.state.wi.us/bd/BD-Act255-Venture capitalseedf
und.html
Thank You!
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Liddy KarterExecutive Director,
Connecticut Venture Group [email protected]
203 376 7958