AVON, Conn.--(BUSINESS WIRE)--Advantage Capital Partners, a leading venture capital and small business finance firm, in partnership with Ironwood Capital, an Avon-based investment management firm, today announced that they have provided financing to three promising young companies located in Connecticut. Each of the companies has received a pre-seed investment of $150,000.
The funding provides these pre-seed companies with working and growth capital, offering each company the ability to fast track their development as well as attracting additional private dollars.
“Connecticut’s recently enacted jobs bill--intended to promote economic opportunity, enable job creation and retention, and contribute to a robust investment climate—led to our investments in all three of these companies. Each of these new ventures is at a crucial, early stage of their development,” noted Marc Reich, President of Ironwood Capital. “Thanks to the jobs bill, we are able to provide these startup enterprises with private growth capital. This is the kind of funding that new companies, even with high growth potential, are challenged to find in current capital markets. ”
The three companies:
Greenleaf Biofuels, based in Guilford, is developing a biodiesel processing operation at New Haven Terminal. The funding will support final engineering work and working capital, with a groundbreaking planned within 90 days. Founded by industry pioneer Gus Kellogg, Greenleaf Biofuels is committed to producing American-made biofuels from recycled waste materials that will not only help secure U.S. energy independence, but also provide for a cleaner environment.
Floop, Inc. Serial entrepreneur Richard Schultz is developing a real-time interactive social network for mobile, iPad, and the web that lets users express opinions and see what their friends and the world think. The pre-seed investment will enable the company to complete development and product testing by attracting top-notch engineering and design talent to its headquarters, which is located in Woodbridge.
NovaTract Surgical, LLC is the developer of a specialized, next-generation surgical tool, based upon technology licensed from Yale University. NovaTract was founded to develop new, innovative medical devices to address the rapidly growing field of Single-Port Laparoscopic Surgery and Natural Orifice Transluminal Endoscopic Surgery (“NOTES”). Demand for these methods is increasing due to less postoperative pain, shorter recovery times, less risk for complications, and improved cosmetics. Funding will allow the completion of surgical tool design.
“We are thrilled to partner with Advantage Capital and Ironwood Capital,” said Eleanor Tandler, CEO of NovaTract, which is located in New Haven. “Their willingness and ability to provide funding at a critical phase of development means that our company now has the opportunity to continue groundbreaking surgical innovations, grow our business, and ultimately create good jobs here in Connecticut.”
Connecticut leaders applauded the investments. Senate Majority Leader Martin Looney (D-New Haven / Hamden) said, “We designed the Majority Leader’s Jobs Bill to serve as a catalyst for high quality job growth – especially in industries in which Connecticut already enjoys a competitive advantage. I am delighted to see the jobs bill put to work so quickly, bringing private investment capital to three promising companies in our region. We expect the Majority Leader’s Jobs Bill will continue to help drive Connecticut’s recovery.”
About Advantage Capital Partners
Advantage Capital Partners is a leading venture capital and small business finance firm focused on providing growth capital and other investments supporting state and local economic development efforts. The firm has raised $72 million for investment in Connecticut-based companies. Typical forms of investment include early stage, expansion equity, mezzanine financing, senior and subordinated loans and government-guaranteed lending. Advantage has raised more than $1.3 billion in institutional capital since 1992 and invested in companies located in geographic areas underserved by traditional capital.
About Ironwood Capital
Ironwood Capital is an Avon-based investment management firm focused on private equity, mezzanine and senior debt investments. With over $300 million of capital under management, Ironwood Capital serves as a value-added partner for middle market transactions, supporting business owners and financial sponsors in leveraged buyouts, growth financings and recapitalizations.