Over $130 million dollars in capital has become available to businesses showing a high growth potential. This has happened because a program for tax credits has been passed. This was designed to persuade insurance companies to make these investments with a fund that has been registered by the state. The available funds are designed to appeal to smaller companies whose employees reside in Connecticut. The business sector has not had a base strong enough for investments prior to this.
One of the main elements is the growth of Connecticut’s bioscience industry. This is believed to be a solid industry for the future. With the capitol available, it is hoped businesses will begin to develop this technology.
Enhanced Capitol’s director, Liddy Karter, has begun two different pools for investments and has already managed to raise $30 million dollars. The fund she has procured is for the underwriting of debt and large investments in equity. The industries being considered are in the fields of technology, health and manufacturing to name a few.
Advantage Capitol has brought in a total of $72 million dollars to be used for twenty-five companies located in Connecticut. Numerous other companies have been both raising money and investing in businesses and technology in Connecticut. Advantage Capital Partners is a company run by Ryan Brennan. This firm has started making investments due to the program developed for tax credit. They specialize in different types of financing.
Ironwood Capital’s Victor Budnick has stated they have a fund able to make an investment in a solid company of up to $10 million dollars. At this point, their largest investment has been at $7.1 million dollars.
The tax program actually went into effect in 2010 as part of an initiative that supported some major jobs, and has the capability of investments of up to $200 million dollars. Credits are given to the insurance companies for taxes when they invest in the program.
Although there are some restrictions involved with this program they do not seem to be a hindrance. A quarter of all investments made by the managers of the funds must be used for green technology. An additional three per cent must be used for investments in the pre-seed industry.