NJEDA Approves 61 Angel Investor Tax Credit Investments During Record-Breaking Quarter
Program Sees Injection of Nearly $21 Million into New Jersey Innovation Ecosystem
TRENTON, N.J. (November 15, 2018) – The New Jersey Economic Development Authority (NJEDA) has announced the approval of a record-breaking 61 applications through the State’s Angel Investor Tax Credit Program during the third quarter of 2018. The approvals represent the infusion of nearly $21 million in private capital into 13 technology and life sciences companies throughout the Garden State. This uptick in activity highlights momentum generated by Governor Phil Murphy’s focus on re-establishing New Jersey as the State of Innovation.
The Angel Investor Tax Credit Program offers a 10 percent refundable tax credit against New Jersey corporation business or gross income tax for qualified investments in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state. Applications must be submitted within six months of the date of investment.
Between January and September, the NJEDA approved 121 Angel Investor Tax Credit Program applications representing nearly $60 million in investments made into 30 New Jersey technology and life sciences companies.
In the third quarter alone, the NJEDA saw an 85 percent year-over-year growth in approved applications and a 2.5x year-over-year growth in investment amount and approved tax credits compared to 2017. Six companies participated in the Angel Investor Tax Credit Program for the first time between July and September.
“We are seeing a significant upswing in interest in the Angel Investor Tax Program this year, which furthers Governor Murphy’s goal of creating a stronger and fairer economy by not only investing in emerging companies, but also attracting capital into our state,” NJEDA Chief Executive Officer Tim Sullivan said.
Companies that participated in the Angel Investor Tax Credit Program for the first time during the third quarter of 2018 include:
Trinity Medical Devices, Inc. provides single patient use physician non-preference medical devices. These devices are used by hospitals, ambulatory surgery centers and homecare customers in the areas of anesthesia and respiratory. Trinity benefited from over $3.9 million in investments made by fifteen first-time participants in the Angel Investor Tax Credit Program. The funding was used to support immediate growth initiatives, as well as new product offerings.
Leap Insurance LLC. has created a technology that pre-qualifies renters and insures rent payments to landlords. The company held a ribbon-cutting ceremony in August at its new location in Jersey City, a move that was made possible by more than $1.7 million in funding secured from investors who participated in the Angel Investor Tax Credit Program in the third quarter of 2018. The funding was also used to hire additional employees in New Jersey.
Holmdel-based Hope Portal Services, d/b/a Hope Trust, is a technology-based trust company specializing in helping families and their loved ones with special needs. Their team of social workers, medical professionals, lawyers and financial experts craft individualized plans for caring for individuals with unique challenges, and utilize trust assets to meet the identified trust goals. Three investors have invested a total of $600,000 in the company’s pre-seed round through the Angel Investor Tax Credit program through the third quarter. The funds enabled Hope Trust to develop the technology that powers their services and hire key C-level staff.
Axle Technologies Inc., located in Jersey City, offers an on-demand smartphone and web-based application that provides a new age logistics and communicational platform to the trucking industry. Funding from a $20,000 investment by an investor participating in the Angel Investor Tax Credit Program is expected to support the hiring of additional employees and improving the reliability and stability of the product.
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.