Peter Longo is senior managing director of investments at Connecticut Innovations and in that position is responsible for evaluating investment opportunities, structuring investments and monitoring portfolios.
His past CI investments have included New Haven-based Achillion Pharmaceuticals (an initial public offering); Shelton-based CYA Technologies (acquired by Arizona-based enChoice); Shelton-based NeuVis Inc. (acquired by Massachusetts-based Rational Software); Hartford County-based Nufern (acquired by Minnesota-based Rofin-Sinar); Farmington-based Cardium Health (acquired by Missouri-based Centene); Milford-based SilverSky; and Rocky Hill-based Post-n-Track. He addressed questions about Connecticut Innovations, which was formed in 1989.
Define the history and mission of CI.
“Connecticut Innovations was formed by the Connecticut Legislature to help promising technology companies get off the ground. Today, CI is the leading source of financing and ongoing support for Connecticut”™s innovative, growing companies. With the addition of our Small Business Innovation Team in 2009 and our merger with the Connecticut Development Authority ”“ the state”™s lender ”” in 2012, CI now serves companies in all stages of growth.
“CI”™s mission is to be the leading source of financing and ongoing support for Connecticut”™s innovative, growing companies. By offering flexible financing, strategic guidance and introductions to valuable partners, we enable promising Connecticut businesses to thrive.”
The recession is said to have sparked an entrepreneurial revolution ”” Apple”™s App Store had more than 1 million apps approved within six years of its creation. Do applications verify a backlog of untapped entrepreneurial activity?
“We haven”™t seen a noticeable change in venture applications; they remain strong in areas where Connecticut is strong: IT, health care IT, clean tech and life sciences.”
Is one field outpacing the others in entrepreneurial spirit?
“Right now we are seeing quite a bit of promising health care-related opportunities. Also, we see a lot of activity at the universities with student-led opportunities.”
What are the biggest challenges to entrepreneurial financing today?
“The lack of early-stage capital available to support young companies. Startups are at risk of failure during the so-called ”˜valley of death”™ (pre-revenue, pre-customer), because they need cash to support ramp-up activities such as prototyping and rounding out their team. CI helps to fill this need. In fact, we”™re one of the most active early-stage funders in the country. It”™s a real challenge for startups to find this critical early-stage capital, which is why CI is focused on finding co-investors who will play with us in this space.”
