Saturday, June 18, 2011

Three funds raise capital for CT ventures

Excellent article - click here to read in its entirety:

The state’s venture capital sector is showing signs of life.

Three new funds have sprung up in recent months with plans to make available more than $130 million in capital to high-growth, small- and medium-sized companies in the state.

The new funds were formed as a result of the revised Insurance Reinvestment Tax Credit program, passed last year by state lawmakers, which provides incentives for insurance companies that invest in high-growth businesses through state-registered fund managers.

The new funds are targeting investments in companies with fewer than 250 employees and whose workforce largely resides in Connecticut...

Enhanced Capital Connecticut, one of the recently started funds that has raised about $30 million in two separate investment pools. ...will identify and underwrite debt and equity investments of up to $3 million in qualified firms — from seed-stage to mature operations. They are looking at industries ranging from manufacturing, information technology, and healthcare, to business services and green technology.

Enhanced Capital recently finalized its first deal with New Haven-based software analytics firm Hadapt Inc., which operates in Science Park in New Haven.

The other new funds are Advantage Capital Connecticut Partners, which was formed by Missouri-based Advantage Capital Partners in partnership with Ironwood Capital in Avon, and Stonehenge Capital Fund Connecticut started by Stonehenge Capital in Louisiana.

Advantage Capital has raised $72 million earmarked to invest in about 25 Connecticut companies. Stonehenge, just started in recent weeks, has raised about $35 million.

Advantage Capital and Ironwood Capital have already invested in eight Connecticut-based companies, including recent deals with Norwalk-based XLerant, Inc., which is a software company that provides corporate budget preparation software, and The Green Life Guides LLC in New Haven, which operates The Green Bride Guide, an online site for green wedding ideas, products, and services...

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