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2016 | Doing Business in Connecticut 49 By Matthew L. Brown E d Goodwin isn't the typical venture investor. In fact, as he puts it, he's "totally atypical." He understands how cells work. He ran the cell biology program at Yale University in New Haven, and his life's work in that field helped build the university's virology program. Goodwin was at Yale for 19 years and retired about a year and a half ago, and his work at the university gave him the financial freedom to seek out investment opportunities. Startup potential When he started to look around, though, he didn't have his eye on making in- vestments in early stage companies. While he's now the president of the Connecticut Angel Investor Forum, Goodwin began his search for investment opportunities where many beginner investors do: apartment buildings. It was while he was looking for small apartment buildings that Goodwin read about the Angel Investor Forum. "I checked it out, and I was blown away by the companies that presented and the questions the investors asked," he said. Today, Goodwin and the forum see a steady stream of about 30 proposals each month, and fund about 3 percent of them. Some of them could be blockbusters. Some are not. "We get wacky stuff. It can be wild." When Goodwin joined, the forum was only a handful of years into its existence, and it consisted of only a few investors. But gradually, it grew and now has a roster of about 50 investors willing and able to put money into small, high-risk, entrepreneur- ial startups that hold significant potential for very fast, very big growth. e forum's typical investor is looking for a return of 10 to 30 times his or her invest- ment within five to seven years. ose investments are typically in technology startups, oen in soware. But as a biologist, Goodwin has a natural and professional interest in bioscience firms. at's where he puts about half of his personal investments. Bioscience firms take a long time to develop. ey're capital-intensive. Angel investors like to be involved in the companies that use their money, and bioscience companies tend to quickly outstrip investors' ability to play a role. And even in Goodwin's case, where a bioscience company is unlikely to exceed its investor's expertise, frustrations abound. One pharmaceutical company that con- tacted Goodwin had been trying unsuccessfully to raise money for nine years. "I figured out why, and they didn't want to hear it," Goodwin said. "Sometimes there are people issues. If they're pig-headed and wrong, it's terrible. You have to walk away, and it's too bad." Bioscience start-ups need a liquidation event — an IPO or a merger — relatively early in their lives, and the returns for investors can be very high if it all works out. For Goodwin, it's all about getting people plugged into the right network. "Connecticut Innovations has a terrific pre-seed and seed investment program, and we invest with them on that. It's one of the most successful programs the state has," he said. "CURE hosts events and trains scientists to become entrepreneurs. ey're plugging people into the resources that already exist in the state. ere's the Connecticut Technology Council, the Crossroads Venture Group, the annual Innova- tion Summit. It's quite active." ❑ Ed Goodwin allows us to continue to lead," Winkler said. Innovation is also key to the state Department of Insurance's evolving role in the industry, said Insurance Commissioner Katharine Wade. "We take great pride in being a rigorous department, but at the same time we strike a balance with companies because we want them to do business and grow in Connecti- cut," Wade said. "We try to partner with companies in good times and bad." Today, that requires a real emphasis on regulatory efficiency, Wade said. "We have to ask ourselves, 'What are the steps we can take out of the process?'" Under Wade, the department has implemented online tools intended to make it easier for insurance companies to do busi- ness with the department. "States compete for companies, and the more we drive costs down, the better it is for insurers," Wade said. "ere's a lot of innova- tion around improving online tools, help- ing people through the process, and putting everything online so companies can under- stand what they need and to make it more transparent." Hand-in-hand with making it easier for insurance companies to do business in the state is keeping the industry's employment base stocked. "e insurance industry has never been a draw," Winkler said. "It's not a sexy indus- try. But if we can showcase that it's about cybersecurity, the Internet of Everything, financial market volatility and health care, as an industry we can message to students and young adults just how complicated and challenging the industry is." Students who take the time to listen come to realize the insurance industry is one in which "they're challenged and well- compensated," Winkler said. "ey can stay in one market and have a lucrative career, and have opportunities to go other places, to go international." Over the winter break, the cluster held a career fair that drew 500 students, the highest number the organization has seen at a career event. Winkler said about 20 percent of the students who came to the career fair attend out-of-state schools. "We want to retain them before they go back to school. We have to retain them. Young adults today are virtual and very mobile, and we have to send a clear message that, "We want you here,' " Winkler said. ❑ RISK & REWARD Goodwin Helps Spot Potential for Angel Investors PHOTO/PABLO ROBLES PROFILE