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Connecticut Innovations highlights startup successes, says no state bonding needed
Summary
Connecticut Innovations (CI) told the bonding subcommittee it does not plan to seek state bond funding in the coming biennium and outlined recent portfolio successes, including proof-of-concept grants and the Future Fund for underrepresented founders.
Connecticut Innovations President Matt Moore told the Finance, Revenue and Bonding subcommittee that CI is not requesting bonding dollars and described recent portfolio milestones and programs that support early-stage firms.
Moore's overview and examples
Moore summarized CI's mission as the state's venture capital and innovation arm, describing a portfolio of roughly 250 companies that employ about 4,000 people in Connecticut. He highlighted CI's proof-of-concept investment vehicle (created in 2021) that provides small equity investments to very early-stage companies, and the Future Fund, a $50 million effort focused on underrepresented founders.
Selected company stories cited
- Verodermix: A Connecticut startup spun from university research that received CI proof-of-concept support, later in-licensed clinical assets and raised a $75 million round; CI described the company as still based in Connecticut.
- Flight Health: CI helped connect the company to the state as an anchor customer; Moore said Flight Health helps state employee health needs and could reduce state health spending while supporting a Connecticut startup.
CI governance and conditions
Moore said CI's board changed an older requirement that previously required 50% of a portfolio company's employees to live and work in Connecticut. The agency now requires demonstrable economic development benefits and an expectation the company will be a net contributor to the state. CI seeks executive-level employees and hires in Connecticut and works with firms to recruit local talent; the organization also runs in-house recruiting that placed more than 100 employees in portfolio companies in the last year, he said.
Funding and risk posture
Moore said CI's unallocated balance is about $11 million and that CI does not expect to request bonding in the next biennium. He noted that the organization embraces risk: early-stage venture funding has a high failure rate, he said, but portfolio returns and a few high-growth successes are expected to offset unsuccessful bets.
Quotations
"We're not here for asking for any funding. We don't need any bonding dollars," Moore told the committee. He added: "Our role is to help find the companies that are going to become the next Travelers, the next Aetna, the next General Electric."
