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2016 | Doing Business in Connecticut 71 SPONSORED PROFILE ups working on innovations in financial services tech- nologies or "fintech" and digital health—two areas CI says are most ripe for disrup- tion, and most suitable to take advantage of the vast resources of the state, which is home to myriad financial and healthcare companies, as well as world-renowned research institutions. Along with an invest- ment award of up to $1.5 million for first place, $1 million for second place and $500,000 for third place, CI and its network will intro- duce winners to health tech and fintech experts, inves- tors, customers and educa- tors. Partnering with indus- try and academia, CI hopes to provide finalists with the funding, guidance and expertise that will quickly accelerate their success. Expanded Ecosystem, New Locations An initiative of the Malloy administration, CTNext is Connecticut's innovation ecosystem, a public-private partnership and network of mentors, coaches, entrepreneurs and service providers that equip entrepreneurs with resources, guidance and networks to accelerate their startups' growth. Under McCooe's guid- ance, CTNext has expanded both its partner network: (that includes programming for entrepreneurs) and its physical locations. Due to the success of the Entrepre- neur-in-Residence pro- gram, the ecosystem added several EIRs — experienced, successful entrepreneurs who offer free mentoring to Connecticut startups — along with several physical locations where entrepre- neurs can work, network and use equipment, such as 3-D printers. These new physical locations include Makerspaces, which com- plement several existing collaborative work environ- ments across the state. Venture Debt When startups need money, they can often se- cure equity through venture capital and angel investors, and mature companies can secure debt through tradi- tional lenders. But growing, young, venture-backed com- panies, which typically don't fit into traditional lending guidelines, often struggle to obtain the funding they need without further dilu- tion from equity investors. Recognizing this, McCooe has expanded Connecti- cut Innovations' venture debt offerings to make it easier for the startups in its portfolio to access working capital or money for capital expenditures, such as equip- ment purchases. The agency offers direct loans, with a small equity component, such as warrants, of up to $2 million. CI also considers certain loan guarantees and participation loans to help startups. McCooe said one of the main benefits of the expanded offerings is that CI's portfolio companies can reach their milestones with lower-cost capital, making them even more attractive to outside investors that will further fuel their growth. For more information about Connecticut Innovations, call 888-337-5454 or visit www.ctinnovations.com. B:Hive is a co-working workspace in Bridgeport, Conn., supported by CTNext. VentureClash is Connecticut's $5 million global venture challenge focused on early stage digital health and financial services technology (fintech) companies.