News Column

Branford-based Core Informatics using loans, grant to increase staffing, client base

June 14, 2014

By Luther Turmelle, New Haven Register, Conn.



June 14--BRANFORD -- Wider acceptance of cloud-based computing has benefitted Branford-based Core Informatics, which is expanding its client and employee bases at an impressive rate.

At the same time, the state and private investors are pouring large sums of capital into the technology company.

Since March, the company has brought in $8 million in funding. Of that amount, $5 million has come from Arizona-based KLP Enterprises, with the remainder coming from the Connecticut Department of Economic and Community Development (DECD).

The money from KLP Enterprises will be used to boost Core Infomatics' software engineering and product development, as well as bolster customer support, sales and marketing efforts. The $3 million in state money will be used to add equipment and make improvements to the company's headquarters at 500 East Main St.

In return for accepting the state money, Core Infomatics has agreed to create or retain 84 jobs over the next five years.

The money from DECD came as a $2.75 million loan and a $250,000 grant in aid, according to officials at the state agency. The loan is at an interest rate of 2 percent for 10 years with principal deferred for the first three years.

Core Informatics will be eligible for $1 million in loan forgiveness if it meets its employment goals of retaining 15 jobs and creating 69 new jobs by 2019.

Achieving those employment threshold shouldn't be too difficult for the company to reach given the current growth rate of its workforce. A year ago at this time, Core Infomatics had 14 employees, said Josh Geballe, the company's chief executive officer.

Nine months later, when Core Infomatics got the DECD money in March of this year, the company had added 11 more workers. Now, the staffing level at Core Informatics is at 40 and the company is advertising to fill more than two-dozen additional jobs.

Core Informatics makes software that allows companies in a wide variety of fields -- from pharmaceuticals and genetic research to renewable energy and consumer products -- to quickly and easily access their data via a cloud-based computing network. Cloud computing, in its simplest terms, involves storing and accessing data and programs over the Internet instead of on a local computer's hard drive.

"Companies are very sensitive about the security of their data," Geballe said. "It's their lifeblood. But as cloud computing has become more and more mainstream, we have seen a huge increase in our number of clients."

The benefits of using cloud-based computing platforms, where Core Infomatics locates its software, Geballe said, is that they "enable speed, mobility, efficiency, collaboration and access to big data that have created tremendous value in other industries while reducing IT complexity and cost."

"Scientists conducting cutting edge research deserve similarly innovative software platforms which can easily adapt to support their work," he said.

The origins of Core Infomatics come from another Branford company, Neurogen Corp. That bio-technology company was one of the shining stars of Connecticut's efforts to build an industry cluster in the New Haven area during the 1990s and early 2000s.

Two members of Core Infomatics management team, company co-founders Anthony Uzzo and Jim Gregory, developed software while they worked at Neurogen, Geballe said. That work would become the basis for their cloud computing software when Uzzo and Gregory left the bio-technology company and founded their own business in 2006.

Including its two founders, Core Infomatics has a total of six former Neurogen employees working for it, Geballe said. Neurogen was acquired by Ligand Pharmaceuticals, a California-based company, in 2009 and its operations were relocated there.

Call Luther Turmelle at 203-789-5706. Have questions, feedback or ideas about our news coverage? Connect directly with the editors of the New Haven Register at AskTheRegister.com.

___

(c)2014 the New Haven Register (New Haven, Conn.)

Visit the New Haven Register (New Haven, Conn.) at www.nhregister.com

Distributed by MCT Information Services


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: New Haven Register (CT)


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters