The economic collapse of 2008 has taken its toll on Connecticut’s businesses. As a result, lawmakers had to scramble in an effort to save jobs. The issue for these businesses was not that they were going out of business, but Connecticut was not the most affordable place to do business. Since it was a struggle to keep the larger corporations, legislators turned to growing small and medium sized businesses.
In an effort to help these small businesses, three new funds with a total of 130 million dollars available were created. This is an excellent opportunity for the state, since small startups lacked the funding they needed in the past.
This new capital being offered, has also led to strong growth in a new business sector. Connecticut is now developing a strong bioscience industry. Typically, insurance companies were the state’s only major industry, but adding a second one could make a world of difference.
Along with the in state funding, Connecticut is also seeing an increase from investors out of state. When you go from 2009 to 2010 you would see that there was a 43 percent increase of funding from investors. While some of this comes from in state, the majority is from out of state. And this means there is confidence in the potential growth of Connecticut’s economy.
Additionally, the goal of Connecticut is to get more money out of in state investors. Ryan Brennan of Advantage Capital said that the fund is the first investment in Connecticut made by his firm. Despite being fourth in the nation for capital investment, they are ranked fourteenth in the total amount of money invested in Connecticut. This shows that there is money in the state, but it’s still being invested elsewhere. But if this money were invested in the state, there would be an even stronger potential for growth.
The result of this newfound funding, will be a reduction in the gap between who is investing and where. If Connecticut can continue to increase its venture capitalism, and grow new companies and industries from it, the results would be fantastic. And with the help of a growing economy, Connecticut might be able to turn the state around.