CHRISTIE ADMINISTRATION ADVANCES FIRST ANGEL INVESTOR TAX CREDIT AT AUGUST EDA BOARD MEETING
TRENTON, N.J. (Aug. 13, 2013) – Following the launch of the Angel Investor Tax Credit last month, the New Jersey Economic Development Authority (EDA) today approved the first investment under the program at its August Board meeting. The program is a result of legislation Governor Christie signed in January to spur job creation and growth in New Jersey’s emerging technology industries.
“The Angel Investor Tax Credit demonstrates the Christie Administration’s continuing focus on nurturing early-stage technology businesses and ensuring that the next scientific advancements take place right here in New Jersey,” said EDA Chief Executive Officer Michele Brown.
The program provides credits against New Jersey corporation business or gross income tax for 10 percent of a qualified investment in certain emerging technology businesses. The approved $17,500 investment for New Providence-based Edge Therapeutics, Inc. was made by Jonathan Perelman in exchange for stocks in the business. The clinical-stage biopharmaceutical company is focused on developing and commercializing life-saving hospital products that improve patient outcome by addressing acute, fatal or debilitating conditions after brain hemorrhage that have no current effective treatment. The EDA previously provided Edge Therapeutics with $100,000 in convertible debt, which was converted to equity in 2012. Edge Therapeutics also participated in New Jersey’s Technology Business Tax Certificate Program.
Brown added that the Board approved several other projects that also seek to capitalize on the talent in our region and provide an environment that catalyzes innovation, entrepreneurship and job creation.
The EDA helps increase available capital for emerging technology companies by investing as a limited partner in venture capital firms. The Board approved an investment of $2.5 million in ff Rose Venture Capital Fund, L.P., which was formed in 2012 and is part of the ff Venture Capital family of funds. The Fund is anticipated to be between $50 million and $70 million and is seeking to invest in approximately 40 angel-stage internet and technology companies. It has raised $25 million to date and made 11 investments totaling $4.7 million. The Fund has agreed to invest two dollars for every one dollar the EDA invests in New Jersey-based companies, resulting in a minimum of $7.5 million of capital. In addition, ff Rose is planning to establish a location in New Jersey.
Prior to today’s action, the EDA had approved investments in 11 venture capital funds in excess of $40 million; to date, these funds have leveraged the EDA’s investment into New Jersey businesses by more than 62 times. Gains resulting from these investments are utilized to offer new funding opportunities to support New Jersey’s technology businesses.
The Board also approved a lease with Orthobond Corporation, a biotechnology company developing surface modification technology that can be applied to virtually any material to produce a desired biological response. The company is currently the largest tenant at the EDA’s Commercialization Center for Innovative Technologies (CCIT), which is part of the Technology Centre of New Jersey in North Brunswick. Since moving to CCIT in 2009, Orthobond has grown from two to four laboratories and expanded from a staff of three to 11. The company expects to add another eight jobs over the next few years. To support its growth, the EDA entered into a lease with Orthobond for just over 7,050 square feet of generic wet lab space at the Biotechnology Development Center II (BDC), which is also part of the Technology Centre campus. Orthobond also participated in the Technology Business Tax Certificate Transfer Program.
Brown noted that the graduation of Orthobond from the CCIT into the BDC demonstrates exactly how the concept of the generic wet labs was designed to work: a startup company thrives in the incubator, then moves on to graduate or “tweener” space, and, hopefully in future years, to much larger space on the Technology Centre campus.
“From angel tax credits to venture fund investments and real estate, today’s Board action illustrates the diverse range of support New Jersey now offers our technology community,” Brown said.
EDA Board meetings are typically held at 10 a.m. on the second Tuesday of each month at 36 West State Street in Trenton. The Board meeting schedule, as well as Board agendas and minutes, are available at www.njeda.gov. All Board actions will take effect at the expiration of the statutory period for the Governor’s review and consideration of the meeting minutes.
The EDA is part of the state’s results-driven Partnership for Action. Created by Governor Christie and led by Lt. Governor Guadagno, the Partnership is the hub for all economic development activity in New Jersey and is comprised of four interconnected and highly focused organizational elements: Choose New Jersey, the Business Action Center, the Office of the Secretary of Higher Education and the EDA.
For more information on the Angel Investor Tax Credit Program, visit www.njeda.gov/angeltaxcredit. To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov.