Hartford Business Journal

www.HartfordBusiness.com January26,2015•Hartford Business Journal 5 RepoRteR's Notebook CT venture funding soars in 2014 Last year proved too be fruitful for the state's venture funding activity, as inves- tors nearly doubled the amount of capi- tal they made available to Connecticut startups. Venture capitalists injected $521.4 million in Connecticut companies in 2014, compared to $212.5 million invested a year earlier. That was the highest level of annual investment since 2001, indicating that Connecticut startups are finding it easier to access capital outside tradi- tional banks. Overall, 54 Con- necticut companies received funding last year, according to the latest Money- Tree report, a joint effort of Pricewater- houseCoopers and the National Venture Capital Associa- tion (NVCA), using data from Thomson Reuters. That was two more deals com- pared to 2013. N a t i o n w i d e , venture capitalists invested $48.3 billion in 4,356 deals in 2014, an increase of 61 percent in dollars and a 4 percent increase in deals over the prior year. Venture funding in the state peaked in 2000 — right before the dot-com bub- ble burst — when investors poured an astounding $1.5 billion into Connecticut companies. The state hasn't gotten close to that level of investment since. Connecticut is working hard on mul- tiple fronts to develop a more innovative, entrepreneurial economy, but significant challenges exist. The state isn't considered a technology hub making it hard to retain or recruit entrepreneurs who attract ven- ture funding. Still, it appears the state's startup and investment prospects are brightening. Con- necticut's 2014 performance, however, was helped by a few big deals that boosted the investment total. In the fourth quarter, for example, Connecticut attract- ed $146 million, led by a $100 million investment in Guil- ford medical device maker Butterfly Network. Such large venture deals aren't common in Connecticut. New Haven Phar- maceuticals in Bran- ford raised $11.8 million in the fourth quarter, while Trevi Therapeutics in New Haven raised $11 million. Greater Hartford did not see any venture funding in the fourth quarter. Across the country, investors continue to be most bullish on software companies, which received $19.8 billion last year, a 77 percent increase over 2013. Biotechnology investment dollars, which Connecticut is trying hard to attract, rose 29 percent in 2014 to $6 billion, mak- ing it the second largest investment sector for the year. "With the fundraising environment improving in 2014 and non-traditional investors increasingly joining venture capital firms in later-stage funding rounds, more capital was deployed to the startup ecosystem in 2014 than any year since 2000," said Bobby Franklin, presi- dent and CEO of National Venture Capital Association. — Greg Bordonaro DoNo work will throw parkers a curve With groundbreaking closing in for the $350 million "Downtown North'' redevelop- ment that includes a ballpark, hundreds of daily commuters who pay for surface parking betweeen Main and Market streets eventually will have to find new corrals for their vehicles — a move that means they will likely pay more to park in the Capital City. Eric Boone, CEO/executive director of the Hartford Parking Authority (HPA), recently confirmed that the first 250 spaces in one of several lots his agency operates will be lost when Centerplan Development Co. of Mid- dletown gets under way with initial site con- struction. A top Centerplan official previously has said early February is the target date for beginning the development's first phase. Later, as the project's other construction phases, including housing, retail, offices and a parking garage, come on line, more of DoNo's surface spaces will eventually disappear, Boone said. The good news, he says, is that an HPA survey shows that 900 to 1,000 motorists daily actually use the DoNo surface lots, which means there is plenty of available capacity in downtown's park- ing network to absorb those lost spaces. However, the reality is, Boone said, that DoNo parkers who pay $80 plus taxes monthly to access those lots would see their monthly parking expenses climb from hav- ing to park in more expensive garages or other parking sites. — Gregory Seay Connecticut 2014 Venture Funding 2014 Amount Quarter Deals Invested 1 12 $196,574,800 2 18 $109,344,000 3 11 $69,943,800 4 13 $145,522,200 Grand Total 54 $521,384,800 S o u r c e : P w c / N V c A M o N e y T r e e r e P o r T b A S e d o N d A T A f r o M T h o M S o N r e u T e r S Connecticut 2014 Venture Investments by Development Stage Early Stage $259,716,000 Expansion Stage $62,651,000 Later Stage $191,199,800 Startup/Seed $7,818,000 Grand Total $521,384,800 S o u r c e : P w c / N V c A M o N e y T r e e r e P o r T b A S e d o N d A T A f r o M T h o M S o N r e u T e r S You can't dabble in tax. You have to live it. Tax is a specialty, and it requires a special person. That is why at Federman, Lally & Remis LLC we have a dedicated group of ten tax specialists who do only tax work. It is their calling. Our team tracks new developments, court decisions, and administrative releases. Every day. For us, it is a year-long concentration. Does that make us different? We think it makes us better. Federman, Lally & Remis – Not Your Typical Bean Counters. We think about taxes all the time – so you don't have to. 231 Farmington Avenue, Farmington, CT 06032 | 860-678-7100 | www.flrcpa.com

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