INVESTORS IN PARAMUS EARLY-STAGE TECHNOLOGY BUSINESS ARE FIRST RECIPIENTS OF EDA ANGEL GUARANTEES
TRENTON, N.J. (July 25, 2006) – The first angel investment guarantees under the New Jersey Economic Development Authority’s (EDA’s) Techniuum Initiative have been finalized for investors in Knowtions, Inc., a workforce productivity software provider based in Paramus.
Guarantees totaling $69,300 have been provided to a group of four angels who are investing $210,000 in the emerging technology business, which was founded in 2005. The EDA is providing the guarantees to encourage the investment of pre-venture capital in young technology businesses.
“The angel guarantee is one of several resources the EDA offers under Techniuum to encourage the location and growth of technology and life sciences companies and related jobs in New Jersey and we worked closely with the Jumpstart New Jersey Angel Investor Network and the New Jersey Technology Council (NJTC) to develop and implement it,” said EDA Chief Executive Officer Caren S. Franzini. “Our guarantee will cover up to one-third of the investment that angel investors make in a qualified early-stage business.”
The angel guarantee is currently available as a pilot program to members of Jumpstart, a private, member-led group that invests in early-stage technology companies in the Mid-Atlantic region. The EDA and the NJTC are founding members of Jumpstart. Jumpstart angels are accredited investors who, as a group, invest between $200,000 and $1 million in emerging technology companies and have already invested a total of $4.6 million in nine New Jersey businesses.
“The EDA’s guarantee is a great tool to encourage more qualified investors to actively invest in new technology,” said Katherine O’Neill, Jumpstart’s executive director. “Knowtions is the first of several New Jersey companies that Jumpstart members will invest in that are backed by the EDA angel guarantee.”
Karl Rauch, chief executive officer of Knowtions, said the company will utilize its new capital to fund the continued development of its Coachware® product and build a leadership position in the corporate and government learning market. The innovative software is designed to help organizations operate more efficiently by increasing workforce productivity and accelerating user adoption of new business processes and technologies.
“Knowtions is pleased to have our Jumpstart angel investors participate in the EDA’s angel guarantee program,” Rauch said. “Angel investors are an increasingly important source of capital for early-stage technology companies and the EDA’s angel guarantee encourages a higher level of investment in companies like Knowtions. It also demonstrates New Jersey’s commitment to supporting the development of innovative technologies and growing employment opportunities within the state.”
Techniuum provides a continuum of customized, streamlined, long-term support to technology and life sciences companies as they advance through their life cycle of growth and expand their products and services. Through this innovative initiative, the EDA also can assist with financing, lease guarantees, access to venture capital and incentive tools as well as affordable office, laboratory and production facilities. For information and applications, visit or www.jumpstartnj.com or www.njedatechniuum.com.
The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and entrepreneurial training, and real estate development activities.