The Most Valuable Type of Capital

CTI_Headshot-circle-mask-mattMatthew McCooe
Chief Executive Officer

The most important ingredient in any successful startup is an experienced and effective management team. Since our state has taken a beating in the business press of late, I thought it was an appropriate time to remind our readers—you—about one of the critical factors that sets Connecticut apart, namely our extraordinary management talent. Let’s take a closer look at a few lists that I believe more accurately rank our state and represent our greatest asset: our supremely talented human capital. Keep in mind that we’re recognized nationwide for a variety of traits that set our talent apart. Continue reading

Entrepreneurs—Wary of Dilution? A Perspective to Consider

David Wurzer PhotoDavid Wurzer
Executive Vice President and Chief Investment Officer

Most entrepreneurs are loath to give up equity—anyone who has ever watched Shark Tank knows that. And it makes sense. After all, it’s your breakthrough idea, your money (and sometimes your family’s and friends’ money), your sleepless nights and your hard work. When you’re pouring all that into a venture, you should be the one to call the shots and reap the spoils. It stands to reason that the more equity you take—in other words, the more ownership you give away—the less control you have over your business. And of course, you stand to make less money upon exiting, right? Continue reading

Character in Management

CTI_Headshot-circle-mask-mattMatthew McCooe
Chief Executive Officer

I’m reading New York Times columnist David Brooks’ new book, The Road to Character, which explores how some of our greatest leaders and most admired thinkers have built strong moral characters. The book reads like a long but excellent commencement speech, and it blew me away. What struck me most is how closely the character traits that Brooks praises: kindness, courage, honesty, and faithfulness, are the same ones that I look for in senior management in our portfolio companies. Here is an excerpt from the book:

They radiate a sort of moral joy. They answer softly when challenged harshly, they are silent when unfairly abused. But they get things done. They perform acts of sacrificial service with the same modest everyday spirit they would display if they were just taking out the garbage. They are not thinking about what impressive work they are doing. They are not thinking about themselves at all. They just recognize what needs doing and they do it. Continue reading

Simplifying HR, Benefits and Payroll with Technology

JasonJason DeLaurentis
Corporate Benefit Planning Consultant
CBP

Whether your company is firmly established with hundreds of employees or is a new, two-man startup, managing your human resources, benefits and payroll functions is not an easy job. The employee responsible for those areas must stay on top of an increasing number of reporting rules, federal and state regulations and data management requirements, and, unless your systems are integrated, likely is not able to make complex decisions quickly. Tracking data through disparate manual systems and complying with myriad rules and regulations can be a costly drain on resources, leaving your employee frustrated and your company vulnerable to risk. Fortunately, new digital services designed to streamline these functions are cropping up everywhere. Read on to see if one might be right for you. Continue reading

Financing Growth Ventures to Minimize Equity Dilution

jackhayesJack Hayes
Venture Founders

An entrepreneurial team’s mission is to develop and grow its venture and to optimize the management team’s equity ownership stake. Significant growth usually requires substantial development and expansion capital, often in the form of equity investments. These investments take equity from the management team and put it in the hands of the investors who provide the capital for development and growth.

At BioHybrid Technologies and Sensor Technologies, two Shrewsbury, Massachusetts-based high technology startup ventures developing novel ways to treat diabetes, our management team raised over $50 million of technology development financing without any resulting equity dilution. We raised approximately $8 million through federal government and private foundation grants. We raised the balance—slightly more than $46 million—from three corporate alliances, which funded our two ventures’ technology developments in exchange for rights to the developed technologies. Continue reading

Meet Matt McCooe, CI’s CEO

mattbiositeMatthew McCooe
Chief Executive Officer

As the newest member of the CI team, I wanted to share some initial thoughts about the CI mission. More important, I would like to address the open question about how CI intends to accomplish our two objectives—job creation and generating a positive return on investments. Here are three key ways I believe we will win.

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The Valley of Death Just Got a Little Less Steep

margaretMargaret Cartiera
Vice President and Fund Manager

Bioscience innovators looking to bring their game-changing ideas to market know the task isn’t for the faint of heart. Regardless of the nature of the innovation, countless hurdles—everything from complex regulations to lengthy clinical trials, manufacturing snafus, competitive threats and more—must be scaled fast and furiously on the road to commercialization.

Perhaps one of the most difficult challenges life science entrepreneurs face while trying to bring their innovation to market is securing funding. Science is a risky investment. Most life science innovations require a great deal of time and money to get off the ground, and most investors cannot take risks on very early ideas or wait years for their investment to pay off. What’s more, the biggest investor in life science research—the federal government—has been paring back investments in recent years, leaving innovators ever more squeezed for sources of cash.

Ready for some good news? Continue reading

How to be mindful of human resources when you’re starting out

Amy HouriganAmy Hourigan
Vice President, Marketing and Communications

“I am convinced that nothing we do is more important than hiring and developing people. At the end of the day you bet on people, not strategies.”

So said business exec and author Lawrence Bossidy—yes, the Lawrence Bossidy of GE and AlliedSignal fame. It’s important to remember, because when you’re focused on product or pricing or acquiring customers or pivoting, it’s your employees who will help you develop that product or justify that price or hook those customers—or even go back to the drawing board with you after your potential customers tell you that, hey, what we really want is X, not A.

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How to Nail Your Next Interview with the Media

Kelsea Michael

 

Kelsea Michael
Kelsea Michael Public Relations

 

For many, the thought of talking to the media can be nerve racking. But an interview doesn’t have to be stressful. Whether you have a national primetime TV appearance or a discussion with your hometown paper, there are some standard tips and tricks to follow that can not only ease your nerves, but also ensure success.

Whenever I’m training clients, I always make sure they adhere to my one and only rule for media interviews.  Sure, I have lots of advice, but only one rule, and that is to communicate with honesty, integrity and transparency. It’s what I call my deal breaker, so if you take nothing else away from this, please remember the rule when you do your next media interview. Many big news scandals could have been prevented if the key players communicated with honesty, integrity and transparency. Consider the recent scandal involving NBC’s Brian Williams, which was solely about misrepresenting the facts. Consider also the now-tarnished reputation of Alex Rodriguez. His history of lying to reporters about steroid use has cost him his credibility and has all but destroyed his personal brand.

With that in mind, here are the rest of my top tips for working with the media.

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VET Your Investor: Three Reasons Why the Source of Your Funding Matters

Doug-Blog-Circle

 

Douglas Roth
Director, Investments
Connecticut Innovations

Capital is the lifeblood of any startup. Because of this, too many entrepreneurs blindly charge forward raising money without understanding the importance of the process. Raising capital is generally not a skill that most startup executives have. Why? Well, for starters, fundraising is not something an entrepreneur does every day. It’s also a distraction from the important effort of launching and operating a business. A young company needs money and generally needs it now, but many entrepreneurs fall victim to the belief that four quarters from one funding source is the same as one dollar from another. But smart entrepreneurs aren’t so cavalier about something so important! Not all money is green. The sources from which you raise capital can make all the difference between success and failure.

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