Issue link: https://nebusinessmedia.uberflip.com/i/992084
112 | DOING BUSINESS IN CONNECTICUT | 2018 2018 | DOING BUSINESS IN CONNECTICUT | 112 Think back to where Connecticut was 20 years ago. A National Hockey League franchise had just left the state, it was one of the only places in the country where incomes were actually falling and we were known more for David Letterman's speeding tickets than anything resembling innovation. ON THE NATIONAL ECONOMIC STAGE, CONNECTICUT WAS A PUNCHLINE. Yet, since then, Connecticut has steadily flown under the radar, evolving from a state that most investors would bypass to a place that saw exits for two homegrown unicorns—startups valued at more than $1 billion—in the past few months. How is Connecticut suddenly topping lists of the most desirable locations for tech startups? It wasn't easy, requiring that 20 years plus just the right combination of ingredients. Here's how things turned around. AN ENGAGED UNIVERSITY IS A LINCHPIN The New Haven startup scene doesn't happen without Yale. But it's not just a matter of having a major university in town. The university needs to be engaged in the process as well. In New Haven, Yale has embraced its role as the city's biggest economic driver, offering mentorship and funding to seed new companies. Startups need passionate, forward-thinking talent willing to take lower salaries in riskier business models. Recent college graduates are the ideal candidates to fill those roles. As recent graduates gain experience, they may move on to roles at larger companies in the region. It's a cycle that benefits startups, established companies and universities alike. It can even revitalize entire cities: New Haven was once crime-ridden and virtually deserted in the evenings, where now it has lively nightlife. But for this type of economy to thrive, universities must be willing to embrace and encourage it. Yale's leadership in healthcare research has provided a beachhead for the region in the life sciences. ENTREPRENEURS CREATE A NETWORK EFFECT Startup ecosystems need critical mass, and today more than 130 startups are in Stamford alone. Connecticut had to reach a point of startup density where investors and founders would recognize it as a viable location to start innovative businesses. Startups beget more startups, and there seems to be a point at which the floodgates open. Connecticut has quietly become home to nearly 1,000 tech startups, and we expect that number to grow over the coming years. COMPANY PROFILE