Funding Sources and Incentives for   Investment in ConnecticutModeratorPatrick O’Neill, P.E.Director, InvestmentsConnectic...
Funding Sources andIncentives for Investment in        Connecticut      A Second Thursday Event                     presen...
Funding Sources and Incentives for Marketing at the ConnecticutLight     Investment in                    Speed of        ...
Funding Sources and Incentives for   Marketing at the ConnecticutLight       Investment in                      Speed ofPa...
Funding Sources and Incentives for   Marketing at the ConnecticutLight       Investment in                      Speed ofPa...
Funding Sources in Connecticut – State TaxCredits        William B. Claffey, Director of State Tax,         Credits & Inc...
Funding Sources in Connecticut – State TaxCredits  FML, LLP Firm Overview:  –   Regional accounting firm headquartered in ...
Funding Sources in Connecticut – State TaxCredits        Dispelling a Myth         –   Is Connecticut bad for business?  ...
Funding Sources in Connecticut – State TaxCredits        Tax Credits - Generally         –   Investment Credits         –...
Funding Sources in Connecticut – State TaxCredits        Tax Credits – What if I can’t use them?         –   Refundable C...
Funding Sources in Connecticut – State TaxCredits        Helpful Resources         –   Information Publication 2010(13)  ...
Funding Sources and Incentives for   Marketing at the ConnecticutLight       Investment in                      Speed ofPa...
January 10, 2013
Investing in ConnecticutCI grows businesses and jobs in Connecticut by providing       innovative financing and strategic ...
CI brings together best practices to grow          innovative businesses Support high-growth small businesses – financing...
CI Financial Assistance Equity and Risk Capital Investments Debt Financing Small Business Innovation (SBI) Funding & Se...
Equity and Risk Capital Startup Support   □ TechStart Fund   □ Pre-Seed Fund   □ Seed Investment Fund Eli Whitney Fund –...
Small Business InnovationSupporting innovation, promoting collaboration andfostering an entrepreneurial environment in Con...
Other Tech Initiatives CTech - technology business incubators Angel Investor Tax Credit Program Innovation Ecosystem C...
Debt Financing Financing from $25,000 to $5 million Initiatives:   □ Direct loans   □ Loan Guarantee Program   □ Partici...
DECD Financial Assistance First Five Program   □ Large scale projects   □ Requires creation of 200 full-time jobs over 2 ...
Small Business Express Program Goal and requirements   □ To provide capital to “Main Street” businesses with < 100 employ...
For more information:www.ctinnovations.com    www.decd.org
Funding Sources and Incentives for   Marketing at the ConnecticutLight       Investment in                      Speed ofPa...
Private Capital for Growing Businesses
   $93.0 million unit of Ironwood Capital, a 25-year old, $600+    million investment manager based in Avon, Connecticut...
   Business must be based in Connecticut   Must have fewer than 250 employees   Must have less than $10 million of net ...
   We invest between $1 - $10 million of capital in later-stage    growth and cash flowing companies to:    ◦   Support o...
Investment Experience – 12/31/2012   $48 million invested in 24 Connecticut companies   Investment types:    ◦ 80% Debt ...
Ironwood Capital Connecticut   Victor Budnick, Managing Director    ◦ (860) 409-2108    ◦ Budnick@ironwoodcap.com   John...
Funding Sources and Incentives for      Marketing at the ConnecticutLight          Investment in                         S...
THANK YOU CVG SPONSORS        Deal Lead        B Round
THANK YOU CVG SPONSORS              A Round      Venture Capital Sponsors     Professional Service Firms
Upcoming EventsFebruary 12A Guide to the Digital Media Market         Ask about CVG’s 2013University of Connecticut, Stamf...
CVG 2013 CalendarOffering 60 Events    Attendance to all Second Thursday        events is free for members.
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Funding Sources and Incentive for Investment in Connecticut - CVG Second Thursday, 1/10/13

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Funding Sources and Incentive for Investment in Connecticut - CVG Second Thursday, 1/10/13

  1. 1. Funding Sources and Incentives for Investment in ConnecticutModeratorPatrick O’Neill, P.E.Director, InvestmentsConnecticut InnovationsPanelistsDana R. Bucin, Esq. Claire R. LeonardiUpdike, Kelly & Spellacy Connecticut InnovationsWilliam B. Claffey, Esq. John StrahleyFiondella Milone & LaSaracina Ironwood Capital
  2. 2. Funding Sources andIncentives for Investment in Connecticut A Second Thursday Event presented by Crossroads Venture Group January 10, 2013 University of Connecticut Health Center (UCHC) Farmington
  3. 3. Funding Sources and Incentives for Marketing at the ConnecticutLight Investment in Speed of WelcomeModeratorPatrick O’Neill, P.E.Director, InvestmentsConnecticut Innovations
  4. 4. Funding Sources and Incentives for Marketing at the ConnecticutLight Investment in Speed ofPanelistDana R. Bucin, Esq.Updike, Kelly & Spellacy
  5. 5. Funding Sources and Incentives for Marketing at the ConnecticutLight Investment in Speed ofPanelistsWilliam B. Claffey, Esq.Fiondella Milone & LaSaracina
  6. 6. Funding Sources in Connecticut – State TaxCredits  William B. Claffey, Director of State Tax, Credits & Incentives  Fiondella, Milone, & LaSaracina, LLP
  7. 7. Funding Sources in Connecticut – State TaxCredits FML, LLP Firm Overview: – Regional accounting firm headquartered in Glastonbury with satellite offices in Stamford, New Haven and Bristol – Founded in 2002 when 3 founding partners broke away from a national firm; currently 8 partners – Strong focus on providing audit and tax services to high- growth venture capital back companies. – PCAOB registered with growing SEC practice – Strong Accounting and Tax Consulting Services
  8. 8. Funding Sources in Connecticut – State TaxCredits  Dispelling a Myth – Is Connecticut bad for business? – State Comparisons  Connecticut Tax Advantages – Apportionment – Tax Credits / Incentives
  9. 9. Funding Sources in Connecticut – State TaxCredits  Tax Credits - Generally – Investment Credits – Operations Credits – Hiring / Employment Credits – Location Driven Credits – Angel Investor Credit
  10. 10. Funding Sources in Connecticut – State TaxCredits  Tax Credits – What if I can’t use them? – Refundable Credits – Transferable Credits – Value to the financial statements  Dealing with DRS/DECD  Questions?
  11. 11. Funding Sources in Connecticut – State TaxCredits  Helpful Resources – Information Publication 2010(13) – www.ct.gov/drs – www.ct.gov/ecd – www.fmlcpas.com
  12. 12. Funding Sources and Incentives for Marketing at the ConnecticutLight Investment in Speed ofPanelistsClaire R. LeonardiConnecticut Innovations
  13. 13. January 10, 2013
  14. 14. Investing in ConnecticutCI grows businesses and jobs in Connecticut by providing innovative financing and strategic assistance. Access to Capital Strong Expertise Track Record Strategic Talent Advisers Partners
  15. 15. CI brings together best practices to grow innovative businesses Support high-growth small businesses – financing, active engagement, connections Help existing businesses innovate to grow and sustain market position Foster an entrepreneurial environment Leverage outside support Promote collaboration Historically self-sustaining VC program -- 18%+ gross IRR; invested $210 million; leveraged over $1 billion in private capital Loans -- $750 M loans; leveraged with $1.9 B from private- sector partners 15
  16. 16. CI Financial Assistance Equity and Risk Capital Investments Debt Financing Small Business Innovation (SBI) Funding & Services
  17. 17. Equity and Risk Capital Startup Support □ TechStart Fund □ Pre-Seed Fund □ Seed Investment Fund Eli Whitney Fund – flagship fund Venture & Mezzanine Debt Fund Bioscience Facilities Fund Connecticut Clean Tech Fund
  18. 18. Small Business InnovationSupporting innovation, promoting collaboration andfostering an entrepreneurial environment in Connecticutthrough a variety of exciting initiatives: Business counseling and strategic evaluation Guidance on finding and obtaining resources and creating collaborative partnerships Talent development and retention 18
  19. 19. Other Tech Initiatives CTech - technology business incubators Angel Investor Tax Credit Program Innovation Ecosystem Connecticut Stem Cell Research Program The Jackson Laboratory facility at UConn Health Center
  20. 20. Debt Financing Financing from $25,000 to $5 million Initiatives: □ Direct loans □ Loan Guarantee Program □ Participation loans □ URBANK Capital Access Program □ Information technology financing □ Brownfields redevelopment financing Financing support through collaborations with network of lending institutions statewide
  21. 21. DECD Financial Assistance First Five Program □ Large scale projects □ Requires creation of 200 full-time jobs over 2 years or investment of more than $25 million plus 200 jobs over 5 years Direct loans □ Low interest and flexible □ May include forgiveness for reaching predetermined job creation goals Tax credit programs □ Job Expansion Tax Credit □ Urban and Industrial Site Reinvestment Credit □ Film Production and Digital Media Tax Credit □ Enterprise Zone Program □ Sales and Use Tax Exemption □ Municipal Property Tax Abatement
  22. 22. Small Business Express Program Goal and requirements □ To provide capital to “Main Street” businesses with < 100 employees to help create jobs □ Must be a CT company that has been in operation at least 1 yr Types of assistance □ Revolving loan fund ($10,000 to $100,000) □ Matching grant program ($10,000 to $100,000) □ Job creation loan fund ($10,000 to $300,000) Uses: machinery and equipment, construction, leasehold improvements, training, working capital and other business related expenses Terms □ Up to 4% interest and maximum 10-year term □ DECD determines loan terms, conditions, and collateral requirements in a manner that prioritizes job creations
  23. 23. For more information:www.ctinnovations.com www.decd.org
  24. 24. Funding Sources and Incentives for Marketing at the ConnecticutLight Investment in Speed ofPanelistsJohn StrahleyIronwood Capital
  25. 25. Private Capital for Growing Businesses
  26. 26.  $93.0 million unit of Ironwood Capital, a 25-year old, $600+ million investment manager based in Avon, Connecticut All investment capital provided by insurance companies doing business in Connecticut; formed as a Connecticut Insurance Reinvestment Fund Focused on and experienced in making a broad range of debt and equity investments in early-stage through mature Connecticut companies
  27. 27.  Business must be based in Connecticut Must have fewer than 250 employees Must have less than $10 million of net income 80% of the employees must be Connecticut residents Strong growth potential Ability to service debt Identified exit strategy
  28. 28.  We invest between $1 - $10 million of capital in later-stage growth and cash flowing companies to: ◦ Support organic growth ◦ Make acquisitions ◦ Augment existing capital providers ◦ Refinance existing debt We can provide more flexible terms and conditions than many traditional sources of capital: ◦ Fixed and variable interest rates ◦ Flexible amortization tailored to meet business needs ◦ Streamlined process ◦ Pragmatic underwriting
  29. 29. Investment Experience – 12/31/2012 $48 million invested in 24 Connecticut companies Investment types: ◦ 80% Debt ◦ 20% Expansion Equity & PreSeed Investments Broad Industry Representation: ◦ Manufacturing ◦ Information technology ◦ Business Services ◦ Environmental Services ◦ Green Tech and Clean Tech
  30. 30. Ironwood Capital Connecticut Victor Budnick, Managing Director ◦ (860) 409-2108 ◦ Budnick@ironwoodcap.com John Strahley, Managing Director ◦ (860) 409-2106 ◦ Strahley@ironwoodcap.com Alex Levental, Director ◦ (860) 409-2109 ◦ Levental@ironwoodcap.com Mike Benson, Senior Associate ◦ (860) 409-2115 ◦ Benson@ironwoodcap.com
  31. 31. Funding Sources and Incentives for Marketing at the ConnecticutLight Investment in Speed ofUpcoming CVG Events and Closing RemarksLiddy KarterExecutive Director, Crossroads Venture GroupManaging Partner, Enhanced Capital Partners
  32. 32. THANK YOU CVG SPONSORS Deal Lead B Round
  33. 33. THANK YOU CVG SPONSORS A Round Venture Capital Sponsors Professional Service Firms
  34. 34. Upcoming EventsFebruary 12A Guide to the Digital Media Market Ask about CVG’s 2013University of Connecticut, Stamford4:30 PM – 7:00 PM Boardroom SeriesMarch 14Navigating the FDA: Getting to MarketAnylan Center, Yale University, New Haven4:30 PM – 7:00 PM
  35. 35. CVG 2013 CalendarOffering 60 Events Attendance to all Second Thursday events is free for members.

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