Health-related startups lead in Q3 funding from Connecticut Innovations

PHOTO | CONTRIBUTED Peter Longo, Connecticut Innovations senior managing director of investments

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By Liese Klein

Healthcare-related firms were the winners in the latest round of funding from New Haven-based Connecticut Innovations (CI), the state’s venture capital arm.

In the quarter ending March 31, CI invested $13.5 million as part of 34 deals with startup companies. Of that amount, about $4.9 million went to healthcare-related firms, while $4.1 million was invested across the technology sector.

Other industries that saw CI investment included climate-tech, consumer and venture funds. Investments went to 10 new startups, with the remainder reported as follow-up investment for growing companies.

Peter Longo, a CI senior managing director of investments, said, “We also participated in deals where we leveraged our dollars with other strong syndicates of investors.”

Even with the market downturn impacting IPOs and capital raises, CI’s leaders said its startups continue to expand.

Matthew Storeygard, another senior managing director of investments at CI, said, “We are seeing a rightsizing of the market, which will affect the companies in our portfolio over the next several years. However, we continue to see tremendous progress with our portfolio companies, and we look forward to helping them grow as we near the end of the fiscal year.”

The third quarter saw an additional $96.7 million leveraged in outside capital, CI reported. The state’s Angel Investor Tax Credit program also resulted in 173 angels investing $12.3 million across 44 qualified Connecticut businesses this year to date.

Contact Liese Klein at lklein@newhavenbiz.com.