Connecticut Innovations Allocates $11.3 Million to Boost Early-Stage Companies in FY26 Q1

Connecticut Innovations Invests $11.3 Million in Early-Stage Companies in Q1 FY26

Connecticut Innovations (CI), the state's strategic venture capital arm, has taken significant steps to support local innovation by investing approximately $11.3 million across 25 companies and venture funds during the first quarter of its fiscal year. This period, which ended on September 30, 2025, marked a productive start for CI in the new fiscal year, with their investments facilitating the leveraging of around $86.9 million in additional outside capital. Notably, these efforts resulted in generating $7.0 million in proceeds for the quarter.

CI's investment strategy is diverse, with a clear focus on sectors poised for growth. For this quarter, approximately $1.5 million was dedicated to climate tech initiatives, while $2.2 million was invested in various venture funds. One of the most prominent focuses was healthcare, which attracted over half of the quarter's investment dollars, totaling $6.9 million. The remaining funds were allocated to consumer and technology sectors, reflecting CI's commitment to enhancing a range of industries vital to the region's economic landscape.

Matt Storeygard, the senior managing director of investments at CI, highlighted the organization’s revolutionary approach to funding by stating, "With the launch of our new $50 million AI/Q Fund, CI is doubling down on the technologies shaping the future." This fund is poised to play a crucial role in advancing areas such as artificial intelligence, which is at the forefront of innovative healthcare solutions. A prime example of this initiative is CI's investment in Bexorg, which stands as a significant healthcare venture within the AI/Q Fund. Bexorg's work focuses on integrating artificial intelligence with a whole-human brain perfusion platform, aiming to foster breakthroughs in brain health, which could fundamentally change how we approach medical care in this field.

The first quarter's strong performance illustrates CI's proactive stance in identifying and supporting key sectors such as healthcare, climate tech, and AI. Peter Longo, another senior managing director of investments at CI, emphasized this trajectory by indicating that CI commenced the new fiscal year with robust deal activity and substantial participation from various sectors. This trend not only reflects the organization's effective investment strategy but also highlights the ongoing demand for capital among Connecticut's burgeoning companies.

CI’s strategic investments are designed to deliver both financial returns and promote innovation throughout Connecticut. By providing equity and debt investments, they not only support the initial growth of these companies but also offer vital strategic guidance and connections to valuable partners that can enhance their development further.

As they look ahead, CI remains committed to fostering a dynamic business ecosystem within Connecticut. With initiatives like the AI/Q Fund and a continued focus on sectors like healthcare and climate technology, Connecticut Innovations is ensuring that it plays a crucial role in supporting and scaling innovative companies that have the potential to shape the future.

For more information about Connecticut Innovations and their funding programs, you can visit their official website Connecticut Innovations.