Report Finds CI investments Increase State Revenues and Jobs Connecticut Innovations (CI), the state’s quasi-public authority responsible for technology investing and innovation development, today released the results of a study that was undertaken to assess the economic impact of CI’s investments from 1995 through 2008. The study was commissioned by CI. At a press conference held at 11:00 a.m. at the Legislative Office Building in Hartford, Department of Economic and Community Development (DECD) Commissioner and CI Board of Directors Chair Joan McDonald and CI President and Executive Director Peter Longo presented key findings from the study, which showed consistent contributions to the state’s economy of both jobs and revenues resulting from CI’s portfolio company investments. Executives from CI portfolio companies were also in attendance to discuss their experiences in working with the organization.
“Emerging technologies such as bioscience, life sciences and clean tech are among the fastest-growing business sectors in the country, and CI has placed Connecticut at the forefront of these industries,” said Governor M. Jodi Rell. “Each year, a growing number of entrepreneurs are attracted to our state as a result of the financial support and guidance that CI offers to them. The beneficial results for our state include leveraging private outside investment, increased state revenues and job opportunities for Connecticut residents.”
From FY 1995 through FY 2008, CI invested $152 million in a portfolio of 84 companies; $106 million of this amount originated from state funds and the remainder consisted of investment returns. This investment leveraged an additional $1 billion from investment partners. As a result of CI’s investment activity from FY 1995 through FY 2008, Connecticut’s gross domestic product increased cumulatively by $3.6 billion for an annual average of $258.5 million.
The study found that from 1995 through 2008, CI investments grew Connecticut state employment by an average of 1,610 jobs each year.
Additionally, $209 million in net state revenue was generated from economic activity attributable to CI’s investments, representing an average annual increase of $14.9 million. Were it not for CI’s early-stage investments in its portfolio of companies from 1995 through 2008, Connecticut’s coffers would be nearly $15 million poorer each year. Today, CI’s net assets stand at $90 million.
“As a result of prudent investing, Connecticut Innovations has been self-funded, through returns on our investments, since 1995,” said Peter Longo, president and executive director of CI. “The results in this study stand as a measurable benchmark of CI’s success. Our portfolio companies are the tangible manifestations of that success, as they continue to provide jobs, generate revenue, adding to Connecticut’s reputation as a home for the technology industry that will fuel future economic growth.”
Researchers from DECD, which conducted the study on behalf of CI, were on hand to discuss results and the study methodology, and executives from CI portfolio companies provided firsthand accounts of CI’s success in supporting bioscience, information technology, photonics, energy, environmental, and other research and development (R&D) enterprises.
Andy Greenawalt, founder of two CI portfolio companies – Milford-based Perimeter eSecurity and New Haven-based Continuity Engine LLC – spoke to the authority’s success. “The support that CI offers to entrepreneurs like me is really incredible. It’s more than just funding. They understand the challenges associated with starting and building a business, and they work with every CEO to achieve their business goals, whatever those goals might be.”
To view the full results of the study please visit www.ctinnovations.com/impact.
About Connecticut Innovations, Inc. Connecticut Innovations (CI) is a quasi-public organization dedicated to driving a vibrant, entrepreneurial, technology-based economy in Connecticut. CI stimulates high-tech growth by investing in: early-stage Connecticut technology companies; university/industry research collaborations; technology transfer; and, clean energy initiatives. CI also fosters collaboration among government, business, nonprofit and academic organizations to advance technology growth and promotes public policies consistent with CI’s mission. For more information on CI, please visit www.ctinnovations.com.