Table of Contents
INNOVATION CAPITAL ACT OF 1989.
CONNECTICUT INNOVATIONS, INCORPORATED
Sec. 32-41v. Connecticut New Opportunities Fund.
Sec. 32-41v. Connecticut New Opportunities Fund. (a) As used in this section:
(1) "Corporation" means Connecticut Innovations, Incorporated; and
(2) "Fund" means the Connecticut New Opportunities Fund.
(b) Connecticut Innovations, Incorporated shall establish a fund to be known as the
Connecticut New Opportunities Fund, for the purpose of investing in seed stage and
emerging growth companies in the state. The corporation, or a subsidiary created by
the corporation for the purposes of this section, shall serve as general partner or managing
member of the fund and shall determine whether the fund should be organized as a
limited partnership or a limited liability company. The general partner or managing
member of the fund shall be reimbursed from the fund for its management costs, which
shall not exceed two per cent, annually, of the committed capital of the fund.
(c) Investors in the fund may include pension funds, foundations and private entities.
Such investors shall participate as limited partners or nonmanaging members of the
fund. The committed capital of the fund shall not exceed fifty million dollars.
(d) The moneys in the fund shall be invested as follows: (1) Not more than twenty-five per cent in seed stage companies, and (2) not more than seventy-five per cent in
not more than twenty emerging growth companies. Not more than three million dollars
shall be invested in any single seed stage or emerging growth company. Fund investments shall be in the form of equity or similar instruments. An emerging growth company
may be eligible for an investment if the company projects high growth, has a strong
management team, has current and prospective customers, has had difficulty raising
early stage venture capital and is a strong market driver but is facing entry barriers.
(e) The fund shall have a term of ten years, provided it may be extended for three
one-year periods if necessary to complete liquidation of the fund's investments. Upon
such liquidation, each investor shall be entitled to a return of the investment made, plus
eighty per cent of all net realized gains of the fund. The state shall provide a first loss
guarantee at the end of the tenth year, if needed, of not more than twenty-five million
dollars. The state shall be entitled to ten per cent of all net realized gains of the fund
and the general partner or managing member of the fund shall also be entitled to ten per
cent of all such net realized gains.
(P.A. 05-129, S. 1.)
History: P.A. 05-129 effective July 1, 2005.