July 1, 2015
3 minute read

Out-of-State Investor Praises New Jersey Program Aimed at Helping Emerging Tech Companies

TRENTON (July 1, 2015) – The New Jersey Economic Development Authority (EDA) today kicks off a series highlighting investors and entrepreneurs who are making a difference to New Jersey companies at all stages of growth. 
First up is Jeff Stonberg, who invested nearly $1 million in Edge Therapeutics through the State’s Angel Investor Tax Credit Program. Edge Therapeutics, based in Berkeley Heights, is a biotechnology company that discovers, develops and seeks to commercialize novel hospital-based therapies capable of transforming treatment paradigms in the management of acute, life-threatening conditions. The company believes EG-1962, its lead product candidate, if approved, can fundamentally improve patient outcomes and transform the management of aneurysmal subarachnoid hemorrhage, which is bleeding around the brain due to a ruptured brain aneurysm.
Administered by the EDA in consultation with the New Jersey Division of Taxation, 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. The program is available to all eligible taxpayers, including out-of-state investors such as Stonberg. As an out-of-state resident, Stonberg received a refund check from New Jersey for 10 percent of the money he invested in Edge Therapeutics. 
To date, more than 200 investments have been made through the Angel Investor Tax Credit Program, representing an infusion of nearly $75 million into New Jersey technology and biotechnology businesses. 

@NJEDATech spoke with Stonberg about his positive experience investing through the Angel Investor Tax Credit Program and how it benefitted Edge Therapeutics:
Why did you choose to invest in Edge Therapeutics through the program? 
The investment opportunity, as well as the availability of the program, was brought to me by Alex Forschner, Senior Managing Director of Merchant Capital at the Maxim Group, Inc. in New York. The company, Edge Therapeutics, Inc., had already done its part to process with the EDA.
How did Edge Therapeutics benefit from the investment made through the program? 
With the added financial leverage, I invested more in the company than I might have otherwise.  The additional amount exceeded the 10% that was returned to me through the program.
What did you most appreciate about the Angel Investor Tax Credit Program?
This kind of investing is very risky. The fact that another significant investor, in this case the State of New Jersey, had selected the company for its investment, was an additional, and meaningful, form of validation of the company, its management, and its potential to be successful. 
Editor’s Note: In addition to the Angel Investor Tax Credit Program, the EDA supported Edge through a variety of state resources including the Edison Innovation Fund, a suite of financing instruments designed to develop, sustain, and grow biotechnology and technology businesses in the Garden State.
What advice do you have for others who may be considering investing through the program?
The process is complex, but the Authority staff, in my case David Ackerman, is extremely helpful. Having been through it, I can see that the process is framed in a sensible way and that the patient population, the company, the State and investors will all benefit. It is an innovative and sustainable program as long as the EDA continues to underwrite companies such as Edge. 
The EDA recently launched a webinar via for people to learn more about the program. The site also features a newly revised application and Frequently Asked Questions.  Inquires can be emailed to, and an EDA Venture Officer will respond to the request in a timely fashion.
To learn more about resources available to New Jersey’s emerging technology and life sciences companies, visit and follow @NJEDATech on Twitter and LinkedIn.