Connecticut Innovations (CI), the state’s quasi-public venture investor, will keep an equity stake in a Stamford-based data startup that is planning to move out of state following a $14 million fund raise.
1touch.io’s flagship software product, Inventa, helps companies automate the process of locating, managing and protecting personal information and other sensitive data contained within their systems.
CI, which invested $1.25 million in the company in two transactions in 2018 and 2019, converted its note from those financings for the Series A round announced last week, which 1touch.io said it would use to increase its research and development and “field presence.”
CI, which has a “double bottom line” focused on both returns and Connecticut-based job creation, requires portfolio companies to maintain a Connecticut presence, but decided to waive that requirement to keep its stake in the company after a pending headquarters move to New York — a requirement placed on the company by a larger investor.
If CI had not chosen to waive the requirement, it may have put the Series A, and therefore CI’s investment, at risk, said Matthew Bloom, CI’s director of investments.
Lead investors in the round were National Grid Partners and Jerusalem Venture Partners. Others included Mindset Ventures and Ocean Azul Partners.
Correction: A previous version of this story gave an incorrect dollar figure for the equity CI has in 1touch.io.
