Sec. 32-34. Definitions. - Connecticut Statutes

      Sec. 32-34. Definitions. As used in this chapter, the following terms shall have the following meanings unless the context clearly indicates another meaning and intent:

      (1) "Corporation" means Connecticut Innovations, Incorporated as created under section 32-35;

      (2) "Entrepreneur" means any person who seeks to organize, operate and assume the risk for a business enterprise, or who organizes, operates and assumes the risk for a business enterprise;

      (3) "Finance committee" means a committee or subcommittee organized by the corporation and having the authority to approve or deny applications for financial aid and to enter into agreements on behalf of the corporation to provide financial aid;

      (4) "Financial aid" means the infusion of capital to persons, in any form whatsoever, including, but not limited to, grants, loans, equity, leases, guarantees, royalty arrangements, other risk capital and other types of financial assistance;

      (5) "Incubator facilities" means a building, structure or complex designed, constructed, renovated or developed to house and provide research and other services to assist small technology-based companies;

      (6) "Invention" means any new product without regard to whether a patent has been or could be granted;

      (7) "Person" means any individual, general or limited partnership, corporation, limited liability company, institution of higher education, governmental entity or joint venture conducting research into ideas with commercial potential or carrying on business, or proposing to carry on business, within the state which (A) in the case of an individual, general or limited partnership, corporation, limited liability company or joint venture, demonstrates to the corporation the inability (i) to obtain conventional financing in satisfactory amounts or on satisfactory terms or (ii) to locate or continue operations in the state without assistance as provided in this chapter, and (B) demonstrates to the corporation that any project for research into or the development of specific technologies, products, devices, techniques or procedures or the marketing of services based on the use of such technologies, products, devices, techniques or procedures for which assistance under this chapter, is sought, (i) will create new or retain existing jobs in the state, (ii) will result in an increase in the amount of goods or services exported from the state, (iii) will help to strengthen the economy of the state, or (iv) will promote the development and utilization of technology in the state;

      (8) "Product" means any technology, device, technique, service or process, which is or may be exploitable commercially; such term shall not refer to pure research but shall be construed to apply to such technologies, products, devices, techniques, services or processes which have advanced beyond the theoretic stage and are readily capable of being, or have been, reduced to practice;

      (9) "Research" means the scientific and engineering analysis, investigation, collection of ideas and inquiry into concepts, processes and techniques, the purpose of which is intended to result in a commercially feasible product, process or technique;

      (10) "Seed venture" means a business or other entity in the early stage of development;

      (11) "Technical peer review committee" means a committee, subcommittee or other entity organized by the corporation to provide advice and counsel concerning the technological, marketing and management feasibility of projects in connection with each application for financial and technical assistance;

      (12) "Technology" means the conversion of basic scientific research into processes, techniques and products which may have commercial potential;

      (13) "Advanced technology center" means a cooperative research center in a specified field of science and technology established and funded, subject to the requirements in sections 32-40a, 32-40b and 32-40c, through an academic, industrial and governmental partnership for purposes of technological research with a direct relationship to economic development in the state;

      (14) "Venture" means, without limitation, any contractual arrangement with any person whereby the corporation obtains rights from or in an invention or product or proceeds therefrom, or rights to obtain from any person any and all forms of equity instruments including, but not limited to, common and preferred stock, warrants, options, convertible debentures and similar types of instruments exercisable or convertible into capital stock, in exchange for the granting of financial aid to such person;

      (15) "Venture lease" means a lease by the corporation to a technology company of any real or personal property, on such terms, including lease payments, lease term and purchase options, as the corporation shall determine;

      (16) "Affiliate" means any person that directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with, another person, including, but not limited to, any corporation, general or limited partnership or limited liability company controlled, directly or indirectly, by such other person or the corporation, provided, in addition to other means of being controlled, a general or limited partnership or limited liability company shall be deemed to be controlled by the corporation if the corporation or one of its affiliates acts as a general partner or a manager of such general or limited partnership or limited liability company;

      (17) "Capital initiative" means providing financial aid through one or more affiliates and raising the capital for such affiliates, in whole or in part, from sources other than the state;

      (18) "Preseed financing" means financial aid provided for research and formulation of a concept;

      (19) "Seed financing" means financial aid to an inventor or entrepreneur to assess the viability of a concept and to qualify for start-up financing to fund, including, but not limited to, product development, market research, management team building and, pending successful progress on such initial steps, business plan development;

      (20) "Start-up financing" means financial aid to companies in the process of organizing as a business or that have been in operation for less than one year and (A) have completed product development and initial marketing but have not sold such product commercially, and (B) have established viability by performing market studies, assembling key management, developing a business plan and may also qualify for start-up financing by demonstrating viability by other means deemed appropriate by the corporation;

      (21) "Early or first-stage financing" means financial aid to companies that have expended initial capital, developed and market-tested prototypes, and demonstrate that such funds are necessary to initiate full-scale manufacturing and sales;

      (22) "Expansion financing" means financial aid to companies for market expansion or to enhance the fiscal position of a company in preceding a liquidity event including, but not limited to, an initial public offering or acquisition.

      (1972, P.A. 248, S. 3; P.A. 88-154, S. 1, 3; P.A. 89-245, S. 8; P.A. 91-388, S. 1, 7; P.A. 95-79, S. 121, 189; P.A. 98-203, S. 3, 13; P.A. 06-83, S. 3; 06-187, S. 78.)

      History: P.A. 88-154 revised the definition of "person" to require a demonstration of specific criteria; P.A. 89-245 amended the definition of "corporation" to rename Connecticut Product Development Corporation as Connecticut Innovations, Incorporated, renumbered existing definitions, added definitions of "entrepreneur" and "finance committee", redefined the term "financial aid", added definition of "incubator facilities", redefined the terms "invention", "person" and "product", added definitions of "research", "seed venture", "technical peer review committee", "technology" and "technology innovation center", and redefined the term "venture"; P.A. 91-388 amended Subdiv. (13) by substituting the definition of "advanced technology center" for definition of "technology innovation center"; P.A. 95-79 redefined "person" to include a limited liability company, effective May 31, 1995; P.A. 98-203 amended Subdiv. (4) to expand the definition of "financial aid" to include equity, leases, guarantees and royalty arrangements, amended Subdiv. (7) to include in the definition of "person" general or limited partnerships and added new Subdivs. (15) to (17), inclusive, defining "venture lease", "affiliate" and "capital initiative", respectively, effective June 8, 1998; P.A. 06-83 added Subdivs. (18) to (22), inclusive, defining "preseed financing", "seed financing", "start-up financing", "early or first-stage financing" and "expansion financing", respectively, effective July 1, 2006; P.A. 06-187 redefined "start-up financing" in Subdiv. (20) by providing that companies may also qualify for start-up financing by demonstrating viability by other means deemed appropriate by the corporation, effective July 1, 2006.

      Cited. 167 C. 111.