Connecticut Innovations Doubling Return to State Coffers
Most impact models look at broad measures, sometimes including multiplier estimates for indirect effects. Connecticut Innovations (CI) takes a different approach, but one that might be expected from the venerable equity investment program – the direct capital return to its initial stakeholder, the state.
Bottom line: the program pays for itself, according to recent impact study performed by Connecticut’s Department of Economic and Community Development.. In fact, it has paid nearly $2 for every dollar invested between 1995 and 2008.
The pool of investment capital available to CI originated from the sale of state-issued bonds worth $106 million. During the study period, CI made investments in 84 portfolio companies, investments that resulted in $209 million of net revenue to the state.
In sum, the results of the 14-year study period reveal $1.97 of state revenue for every state dollar invested. Looking at the impact on an annual basis, the study also calculated an average of 1,610 jobs and $256 million in GDP added to the economy each year.
The full study, which includes an overview of Connecticut Innovation’s funding programs in addition to the authors’ survey and model methodology, is available at: http://www.ctinnovations.com/impact/.
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