Enterprise Center Helps Launch Two New Ventures

The Enterprise Center, Inc., a non-profit entity funded by Yale University, The United Illuminating Company and New Haven Savings Bank, recently announced its first complete financing package for two start-up client companies. Funding was made possible by Next Generation Ventures, LLC (NextGen), a Connecticut-based investment firm.

The Enterprise Center, Inc. (TEC) brought together two start-up companies - IDS, a technology integrator and AQSolutions, an IT services company that recruits from emerging markets - and presented their needs for funding to NextGen, a Connecticut investment group that provides seed capital and business development expertise to entrepreneurial businesses. Their meeting resulted in NextGen providing financing for the start-up operations of both companies, who are locating their operations in New Haven.

NextGen, a joint venture between Phoenix Home Life Mutual Insurance Company and Connecticut Innovations, is a fund established to provide seed money and management counsel for start-up businesses in Connecticut. “We are very enthusiastic about these two companies, as well as other new additions to the NextGen portfolio,” said David Pepin, chairman of NextGen. “These two companies are representative of the many promising business concepts in our state, and the vast unmet need for seed capital.”

“IDS and AQ Solutions are two of many promising businesses that need seed capital and business assistance to become successful,” said Tom Conroy, president of NextGen. “These companies are starting out with experienced management, proven technology solutions and substantial market opportunity promising competitive advantage and rapid growth.”

“These are solid companies with great potential,” agreed Carroll Schilling, TEC’s chief executive officer. “They are both relocating to New Haven in order to be close to the resources of Yale and other technology start-ups in the city.” Added Maureen Burke, TEC’s associate director, “The fact that Enterprise Center clients have been successful raising money in this cautious investment market validates our approach, which is to build solid businesses based on credible revenue models.”

Awo Quaison-Sackey, president of AQSolutions, added, “The Enterprise Center, our investors and our customers are visionaries who see the future that companies like AQSolutions and IDS are creating. Our software development model leverages technology and people to bring value to our customers’ information technology projects and further secures Connecticut’s place in the global economy.”

IDS creates industry specific supply chain solutions for companies that deliver their products and services locally. The company will be first to market with a fully vertically integrated application service provider (ASP) solution. The technology will link several offices over the Internet and enable companies to distribute their products and services more efficiently.

AQSolutions provides business clients with a long-term solution for dealing effectively with the current IT labor shortage by identifying and hiring IT professionals in emerging market countries. Using IT professionals in Ghana, West Africa, the company provides cost-effective customized software development and maintenance services that help customers manage IT labor costs and reduce time spent on IT staffing issues. The company markets a unique Remote Access model that provides customers with a predictable supply of skilled IT labor, on a time and materials basis, and local supervisors to manage the employees in their local country.

AQSolutions’ customers maintain project control with the ability to dictate and change requirements, project direction and resource allocation based on their specific needs. With Remote Access, companies benefit from accelerated product delivery, predictable budgets, and cost savings. Customers can concentrate on the work to be done while AQSolutions hires and manages the people in order to bring IT projects to completion.

NextGen is a joint venture between Phoenix Home Life Mutual Insurance Company and Connecticut Innovations Inc.. NextGen offers seed-stage venture capital and professional management support to high-tech, start-up companies committed to locating their businesses in Connecticut. The fund addresses a void in the state’s financing community as traditional venture capital institutions focus on later-stage, proven commercial concepts. NextGen’s goals are to build high value jobs in the state, retain and grow the state’s strong base of intellectual capital, and ensure that local ingenuity translates into fast-growing commercial opportunity in Connecticut. NextGen’s objective is to bring the professional support needed to validate and refine a start-up’s business plan, provide seed funding and round out the management capabilities to ensure its successful start. The fund offers business development expertise and managerial assistance during the critical start-up phase.

The Enterprise Center, located at 433 Temple Street, New Haven, provides start-up or growing companies with such services as business planning, market research, financial structuring, capital source development, and management team building. Staffed with professionals in business management, TEC works closely with corporate specialists from UI, New Haven Savings Bank, and students and faculty from Yale’s School of Management and other professional schools to assist businesses in various industries. Clients at the center must meet certain criteria to qualify for assistance, such as requiring private equity financing and establishing operations in New Haven.

TEC’s Board of Directors includes Bruce D. Alexander, vice president, Yale University, chair of the board; Nathaniel D. Woodson, chairman, president and CEO, The United Illuminating Company; Robert B. Mills, director of economic development, The United Illuminating Company; Paul A. McCraven, vice president, New Haven Savings Bank; Stanley J. Garstka, deputy dean, School of Management, Yale University; and Jonathan E. Soderstrom, associate director, Office of Cooperative Research, Yale University.