Venture capitalists are investment banks, wealthy individuals, or others who put money into an early-stage company with the expectation that it will earn a high return on investment in the future. They’ll typically assume an ownership share in the company in return, and may seek a seat on the board of directors or otherwise take an active role in business operations.
Entrepreneurs seeking venture capital must submit a proposal, including a detailed business plan. Multiple venture capitalists can invest in your company, although this will dilute your equity share in the business. Venture capitalists usually seek to exit the company and cash out their equity within a few years, often through a sale or acquisition.
Venture capitalists tend to be focused on certain industries, namely those with strong growth potential or a high risk/high return tradeoff. Before submitting a proposal, you’ll need to make sure that the investor’s interests align with what your company offers. In addition, venture capitalists only finance a fraction of the requests they receive.
Some venture capitalist firms in the Connecticut market include:
23 Old Kings Highway, Darien, CT
Invests in companies that have high growth potential in consumer products, marketing, business services, and targeted media. This VC typically prefers companies that can demonstrate a certain level of market validation through revenues, customers, or other metrics. The firm also prefers to be the lead or major investor, and provides initial investments of $3 million to $10 million.
285 Riverside Ave., Suite 250, Westport, CT
Invests in “visionaries with transformative ideas.” Its focus areas include fintech, enterprise/cloud, marketplaces, frontier tech, biopharma, digital health and medtech.
2507 Post Road, Southport, CT
Focuses on startup and growing healthcare businesses. The investment firm provides initial investments of $100,000 to $7.5 million, and can invest up to $15 million in a single portfolio company over the life of the investment. CHL Healthcare Partners may also take an interim management role in the company, including setting corporate goals and hiring operating staff.
865 Brook Street, Rocky Hill, CT
Connecticut’s “strategic venture capital arm,” Connecticut Innovations is a leading source of financing and support for innovative, growing companies in the state. A variety of venture options are available, including equity financing of up to $1.5 million per round with a maximum investment of $7 million in any one company, debt financing of up to $2 million, pre-seed investment of up to $150,000, proof-of-concept investments of up to $100,000, and the Connecticut Bioscience Innovation Fund. Connecticut Innovation also offers lending and grant options.
45 Rockefeller Plaza, Suite 2000, New York, N. Y.
This founder-focused boutique venture capital and private equity firm follows a “non-correlated, industry-agnostic portfolio investment strategy.” Entrepreneurs are invited to send pitches through an online contact form.
Three Pickwick Plaza, Suite 302, Greenwich, CT
A multi-stage venture capital firm focusing on high-growth opportunities in the information technology, internet and consumer, fintech, healthcare information and services, and clean energy sectors. Oak’s investment strategy includes serving as a lead or co-lead investor and taking a patient approach to assist companies through challenging business and marketing cycles. The firm also maintains a global network of professional contacts for strategic assistance.
4 Armstrong Road, Suite 230, Shelton, CT
Saugatuck Capital has managed four dedicated private equity funds and currently manages five special purpose funds. The firm seeks to make private equity investments in niche middle market companies with “exceptional management teams and unique opportunities for growth.” The firm focuses on established companies with revenues of $15 million to $100 million, and does not offer financing to high tech, real estate, or financial businesses.
33 Whitney Ave, New Haven, CT
A seed and early-stage venture fund which includes Yale University as its largest investor. The firm focuses on the life sciences industry, with approximately 70 percent of its investments to date concentrated on companies developing therapeutics, laboratory tools, diagnostics, medical devices, and other health care-related products and services. However, Elm Street Ventures also actively invests in software, materials, sustainable technology, and other industries. First investments are typically $500,000 to $1 million, with potential investments of up to $2.5 million more over multiple financing rounds.
One Fawcett Plaza, Greenwich, CT
Specializes in investments in transformative healthcare companies, including biotech, medicaltech, and health solutions companies that seek to improve clinical outcomes, enhance the quality of life, and/or reduce system costs. The firm provides support to a diverse portfolio of both startups and growth equity companies.
680 Washington Blvd, 10th Floor, Stamford, CT
Exclusively invests in the healthcare industry, including healthcare IT, healthcare services, medtech, outsourcing and distribution, and specialty products. The firm focuses on companies that have the ability to improve healthcare outcomes, lower costs, or both. Investments are targeted at growth equity companies, with investments of $10 million to $30 million.