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
10
1. Get more VC $ invested in CT2. Increase VC $ managed in CT3. Increase # of VC backed successes
Vision, Mission and Brand
11
The explicit mission:
“To assist the development of
high growth enterprises through the promotion of capital formation
in Connecticut”
Role of State Government
12
– 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
13
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
14
– 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
15
– $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
16
1 - VCs
2 – The State2a – High Po Companies
3 – The Community
4 - Entrepreneurs
Objectives
17
– 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
18
– 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
19
– 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!
20
Liddy KarterExecutive Director,
Connecticut Venture Group [email protected]
203 376 7958
Recommended
