Investments funds for the state of Connecticut are being used to help the state nurture new industries. In particular, 3 funds are being used to prepare Connecticut for future sources of growth by helping the establishment of key new industries in the state such as biotechnology. Establishing these new industries will give the state an advantage in the more scientifically and technically oriented job market of the future. These efforts are targeted towards companies with less than 250 employees largely situated within the state of Connecticut. Helping these small businesses grow into larger firms capable of employing vast swaths of the state population won’t be easy, but with the help of firms like Advantage Capital under managing partner Ryan Brennan and Ironwood Capital the odds are in Connecticut’s favor.
A major part of this investment is placed within the Insurance Reinvestment Tax Credit program the state produced last year. The $130 million the state raised will use the program to encourage insurance companies to invest in companies generating growth through state-registered fund managers. Liddy Karter, the managing director of Enhanced Capital, expects the program to put more capital into the hands of Connecticut businesses. The business community of Connecticut hasn’t had much luck in the past in strong early stage investment, but this new approach is changing things for small companies for the better.
Connecticut ranks fourth in capital under management, but ranks 14th among states in terms of capital invested within the businesses of the state itself. While the funds are unlikely to change this disparity overnight they still represent a step in the right direction. Connecticut needs to look towards stronger support for its business community if the state wants to compete in the foreseeable future.