This conversation features Onie, Executive Director of CT Next, a quasi-public organization supporting groundbreaking companies in Connecticut. Onie details CT Next's mission to catalyze innovation through workforce development, ecosystem support, various capital deployments (including awards, grants, and equity investments), and sector-specific initiatives in areas like insurtech and biotech. He explains how CT Next functions as a state-funded entity with the flexibility to innovate in funding. Drawing from his unique experience across multiple sectors—including his past as an entrepreneur who successfully crowdfunded a coffee shop—Onie provides valuable insights into both deploying and seeking capital. He offers advice to aspiring entrepreneurs on navigating the funding landscape, emphasizing the importance of celebrating early wins, understanding investors' theses, strategic networking, and utilizing CRM tools and tracking pitch deck engagement to optimize fundraising efforts.
Exploring the Funding Landscape: Insights from a Multi-Sector Leader
0:00:16 Onie's Unique Background: Onie is introduced for his extensive experience across private sector entrepreneurship, academia, non-profit, civil society, and government, offering a multifaceted perspective on funding.
0:00:49 CT Next's Role: Onie serves as the Executive Director of CT Next, a quasi-public organization in Connecticut dedicated to catalyzing and supporting groundbreaking companies, defined as growth-oriented and innovation-driven.
0:01:46 Quasi-Government Explained: CT Next is state-funded but operates with the flexibility to generate its own revenue and implement programs beyond standard state mandates, enabling innovative capital deployment.
0:02:46 Diverse Funding Mechanisms: CT Next provides capital through various programs:
Entrepreneurship Innovation Awards (EIA): A reimagined, sector-specific business plan competition offering financial capital, human capital, social capital, and mentorship.
Growth Grants: Currently being redesigned to better meet the needs of businesses affected by economic shifts (e.g., COVID-19).
Proof of Concept Fund: Deploys equity investments ranging from $50,000 to $100,000 into groundbreaking companies.
SBIR/STR Support: Assists Connecticut businesses in securing federal R&D funding by helping them develop compelling product and business cases for federal agencies like the Department of Defense or Agriculture.
0:05:59 Entrepreneurial Experience: Onie shares his personal journey as an entrepreneur who owned a coffee roasting company and shop in New Haven. He successfully raised over $40,000 through a Kickstarter crowdfunding campaign after facing difficulties securing traditional loans due to the conservative nature of financers towards brick-and-mortar businesses. This hands-on experience as a fundraiser deeply informs his current role as a funder.
0:08:02 Intentional Grant Deployment: Onie emphasizes deploying grant funding intentionally as a catalyst, preferring it when businesses have already demonstrated "skin in the game" (e.g., customer demand) and need an external capital injection to overcome a specific obstacle. He also acknowledges structural barriers and geographic disparities faced by underrepresented entrepreneurs and aims to attract capital to Connecticut.
Celebrate Wins: Highlight milestones, revenue, and signed agreements in pitch decks to showcase traction and success, regardless of scale.
Leverage Success: Demonstrate the ability to succeed with or without a specific investor's check to negotiate more favorable funding terms.
Strategic Investor Research: For venture-backable companies, thoroughly research funds to identify those with an investment thesis that precisely aligns with their company, avoiding a broad, untargeted approach.
Networking & Warm Intros: Cultivate contacts and seek warm introductions, recognizing the current challenging market for fundraising.
CRM (or Excel Spreadsheet): Maintain an organized system for tracking all interactions with potential funders, including contact details, dates, follow-ups, and conversation notes, to streamline the fundraising process.
Pitch Deck Tracking Services: Utilize platforms like DocSend or Dropbox that allow for backend updates to pitch decks and track viewer engagement (e.g., requiring email for access, monitoring time spent on each slide) to gather valuable insights for refinement.