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.

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Venture In CT?

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Liddy KarterExecutive Director,

Connecticut Venture Group LKarter@CVG.org

203 376 7958

VC Challenge in CT

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4th in $ managed14th in $ invested each year

LKarter@CVG.org

VC- 13% of Private Equity $

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US Allocation of $ Invested by Stage

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CT 4TH IN VC $ MANAGED

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CT 14TH IN VC $ INVESTED

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Barely Visible VC investment

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#2 in VC $ Exported

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CT Increasing $ Managed

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1985 1995 2005 20100%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

CAMANYCT

LKarter@CVG.org

Strategic Mission

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1. Get more VC $ invested in CT2. Increase VC $ managed in CT3. Increase # of VC backed successes

LKarter@CVG.org

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”

LKarter@CVG.org

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

LKarter@CVG.org

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

LKarter@CVG.org

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

LKarter@CVG.org

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

LKarter@CVG.org

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

LKarter@CVG.org

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

LKarter@CVG.org

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

LKarter@CVG.org

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

LKarter@CVG.org

Thank You!

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Liddy KarterExecutive Director,

Connecticut Venture Group LKarter@CVG.org

203 376 7958

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