FOR IMMEDIATE RELEASE
October 25, 2023
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CT Next Invests In Success of New Women-Led Angel Fund in CT, Announces Funding to Increase Angel Investors and to Support the Creation of New Angel Funds in Connecticut
“These investments are essential to ensure Connecticut-based startups can access crucial early-stage capital,” Onyeka Obiocha, Executive Director, CTNext
Darien, CT (October 25, 2023) – CTNext, Connecticut’s catalyst for entrepreneurship, and Tidal River, an angel investor network for women, today announced their efforts to increase the diversity and number of angel investors in the state through the Tidal River Fund and other strategic investments into the angel investor base.
“There’s a desperate need for startups to access the capital they need to get to their next stage of growth,” says Onyeka Obiocha, Executive Director, CTNext. “We’re here to help cultivate an ecosystem that catalyzes the success of high-growth and innovation-driven enterprises across the state – but that can only happen if we get more dollars into the hands of founders with groundbreaking ideas.”
Currently, there is an undersupply of early-stage investment dollars for CT-based startup companies that fuel business growth ahead of later-stage investment through funds like the Connecticut Innovation’s Future Fund or through debt financing.
This discrepancy is amplified for diverse founders such as women, founders of color, and immigrant founders who are facing significant hurdles to receiving investment dollars.
“Funding has not been easy as a woman in healthcare,” said Marissa Fayer, CEO of Deeplook Medical and Tidal River investee, who shared remarks via a pre-recorded video. “As a woman CEO, being funded and supported by women is so important because we need to keep the ecosystem growing to support more women founders, more women CEOs, and more women executives.”
CTNext and Tidal River aim to enhance the ability of Connecticut-based startups to access crucial early-stage capital within the state, by increasing the investment dollars in Connecticut's entrepreneurial ecosystem, and by diversifying the funders and types of funding available to start-ups.
“The goal of the fund is to get women investors comfortable with angel investing and give them the confidence to invest in angel deals on their own,” said Chris Gelnaw, Managing Partner with the Tidal River Fund. “A lot of the women participating in this fund are first-time angel investors. Through this member-driven fund, we’re able to slightly de-risk these risky investments which in turn helps new angels gain confidence with this method of investing.”
To support the Tidal River Fund, CTNext has committed two years of funding to provide the operational backbone for Tidal River to focus on education, angel investor recruitment, and investing in a diverse array of CT-based companies.
This funding, $100,000 over two years, will support the development of open-source resources and legal documents to encourage individuals from diverse backgrounds to establish new angel funds here in CT.
“These investments are essential to ensure Connecticut-based startups can access crucial early-stage capital,” Obiocha shared.
CTNext aims to replicate and exceed the success they saw through grant recipients the Angel Investor Forum. After receiving similar funding through CTNext, the Angel Investor Forum saw a 30% increase in the number of angels in their network along with a 100% increase in the number of CT companies pitching to receive funds.
“Let’s look at this as a time where we should be investing. We should be investing in these networks, in these people, in this energy,” said Dan O’Keefe, Chief Innovation Officer for the State of Connecticut. “The work of CTNext is to enable that innovative ecosystem – that is the scaffolding – that is the work that we need to do to make sure that this influx of people find an environment that is risk tolerant in nature, and that’s how we create a culture that will attract more people and that will attract more capital.”
During the conference, Gelnaw shared that the fund has officially reached $800,000 since its soft launch in May, well exceeding initial plans to raise $500,000.
From left to right: Chris Gelnaw, Onyeka Obiocha, and Dan O'Keefe answer questions.
Nic Gunkel, Managing Director, CTNext welcomes attendees to the conference.
Onyeka Obiocha, Executive Director, CTNext
Chris Gelnaw, Managing Partner, Tidal River Fund
Dan O'Keefe, Chief Innovation Officer, State of Connecticut
Marissa Fayer, CEO of Deeplook Medical and Tidal River Fund recipient shared remarks via a pre-recorded video.
Alexis C. Brooks, first-time investor and Tidal River Fund member
About CT Next
CT Next is Connecticut’s catalyst for entrepreneurship. We leverage public and private investment to create and support programs that help fund, advise, connect and inspire innovators with new and early-stage companies. Our mission is to accelerate startup growth and success, positioning Connecticut as the most desirable location in the country for an innovative company to build, grow and create jobs. Learn more at www.ctnext.com.
About Tidal River Fund
Tidal River Fund is a member-driven fund for accredited investors. Our mission: create a community of women investors in CT who support scalable early-stage companies that champion diversity and equity nationwide.
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