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When the goal is for an event to bring new and exciting ideas to potential investors, the event itself needs to be kept fresh and innovative. With that in mind, organizers of the annual Crossroads Venture Fair looked at what could be done differently for the 17th presentation of the venture-capital get-together.

It helped that when the group of investors, attorneys and innovators sat down to plan the 2010 event, they had in hand feedback from about 50 participants from last year's Crossroads. Respondents were satisfied with the location, but this year organizers changed the program a bit, eliminating a panel of speakers from the opening evening's schedule and opening the presenting floor to more seed and startup companies.

The largest venture fair in the eastern U.S., Crossroads brings together high-tech, high-growth entrepreneurs and potential investors. Most of the presenting companies are in the technology, IT or life sciences industries, and all are headquartered in the Northeast.

The event, presented by the Connecticut Venture Group (CVG) and sponsored by Connecticut Innovations Inc. (CII), may in the future be held twice a year, since many of last year's attendees expressed interest in more frequent events.

Peter Hicks, vice president of Webster Bank's Emerging Technology & Growth Group and chairman of this year's Crossroads, says there's nothing wrong with a little tweak here and there. This year, ten early-stage companies with annual revenues of less than $500,000, will present on the first of the two-day event. Last year, no early-stage companies presented, as the free-falling economy spooked investors away from companies with no track record.

Crossroads takes place Wednesday and Thursday, May 5-6 at the Omni-New Haven Hotel at Yale. Angel investors and small venture-capital firms will attend Wednesday's presentations from startup companies in a variety of industries.

On Thursday, 20 later-stage companies (annual sales in excess of $500,000), mostly in technology and life sciences, will present to investors, hoping to make a powerful favorable impression on those with the money.

"Last year we were in the teeth of the economic woes, but we were very pleasantly surprised with the turnout," Hicks says. "This year we're much more optimistic, and yes, investors now are looking for more opportunities. There's more liquidity now than there was last year.

"Many of the investor firms last year weren't sure if they were going to have money to invest," he adds. "Liquidity was so dried up and their limited partners were not in the position of doing [financing] rounds. That's loosening up a bit now, especially in the fourth quarter of last year and the first quarter of this year."



drop capIn 2008, 25 seed and start-up, 25 early-stage and 20 expansion- and later-stage companies were selected to pitch to investors. Last year, a total of just 24 companies presented. The criteria for presenting were more stringent in 2009 as well: companies have to either have $5 million in annual revenue already, or they must have attracted $5 million in invested capital.

Applications for this year's fair were still being accepted at press time.

In addition to Yale and the Economic Development Corp. of New Haven, gold sponsors include Edwards Angell Palmer & Dodge, Fiondella Milone & LaSaracina, Kroll, PricewaterhouseCoopers, Robinson & Cole, Shipman & Goodwin, UHY, LLP, Updike Kelley & Spellacy, Webster Bank and the law firm of Wiggin & Dana.

Thomas J. Lynch Jr., MD, director of the Yale Cancer Center and physician-in-chief of the new Smilow Cancer Hospital at Yale-New Haven, will keynote. According to Michael Roer, executive director of the Connecticut Venture Group, Lynch's subject will be retaining the people behind the ideas and innovations in the New Haven area.

"Connecticut's strength is in life sciences and technology," says Roer. Companies that have presented at previous Crossroads events have raised more than $2 billion in venture capital.

"Raising capital is a form of marketing," Roer says. "You have to get around and talk to as many people as you can. After you've done that and you receive the money, it's hard to track back to which hand you shook on which day that did it. You have to do the circuit."

Adds Hicks: "These are all pre-screened companies. There is a competitive application process, so the companies that apply go through [an] evaluation. These investors appreciate the fact that this isn't just open-mic night. We've made sure they're qualified."

Roer says he's surprised with the optimism in the air this year, as good deals are still being made and confidence is rising in plans to grow companies with good ideas.

"Companies are willing to say, 'Damn the torpedoes, we're going to lay down the plans for growth,' in spite of the economy," Roer says. "At the same time, investors aren't willing to stick their heads in the sand and wait for it to blow over - they're going to invest."

Last year when Crossroads returned to New Haven after a three-year hiatus in Stamford, Yale sponsored the event and 11 of the 24 companies that presented were from Connecticut.

Yale is not only supporting Crossroads, it is drawing participants from its own stable of companies.

According to Shana Schneider, deputy director of the Yale Entrepreneurial Institute, several early-stage Yale-affiliated startups have applied to present at Crossroads. The companies include both current Yale student startups as well as a couple of Yale alumni-founded startups, such as PigSpigot, an Internet greeting card company that calls itself the "anti-Hallmark" for its irreverent offerings. Crossroads organizers were still reviewing all applications as BNH went to press.

"Yale has two goals that it is very committed to," explains Roer. "One is to plant green shoots in New Haven to build the economy and provide opportunities in the New Haven area. They also want to keep the talent in the area when students graduate. [Companies started by students] receive the proper encouragement and everything they need right here in New Haven. Yale supports them directly and indirectly through activities like the Crossroads Venture Fair."

"It's something that can spiral upwards," according to Roer. "The more companies that are formed by Yale graduates who stay in the area and create a culture, that encourages more to follow in their footsteps."

Previous Crossroads events focused on later-stage companies that are seeking a second or third round of funding. This year, with the additional focus on seed-stage companies, Roer expects some later-stage investing companies to get a good idea of what's coming in the future.

"Investors realize we have to keep in touch with what's going on - who the players are now and who they are going to be," Roer says. "It's the current students and recent grads who are going to be exploring the new technologies. These new companies are not only a sneak peek at future investment opportunities for the venture-capital firms, but also a glimpse into the trends and where we're going."

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