The New Jersey Economic Development Authority has approved 60 Angel Investor Tax Credit program applications this year, helping to put nearly $39 million into 20 different technology and life science companies, the EDA announced late Friday.
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 date of investment.
In the second quarter of 2018 alone, 36 investors pumped nearly $16.9 million through the program. The average investment size was $469,099.
“The fact that more people are supporting early-stage companies and the ground-breaking work they are doing reaffirms Gov. (Phil) Murphy’s vision for re-establishing New Jersey’s leadership position in the innovation economy,” EDA CEO Tim Sullivan said.
“These latest Angel Investor Tax Credit Program statistics illustrate how New Jersey’s expanding portfolio of support spurs innovation throughout the entire technology and life sciences sector.”
Sullivan noted that, in the second quarter of 2018, approvals included investments in three companies that were new to the program, totaling $2.7 million in combined private investment.
Boxcar Inc.: Located at Newark Venture Partners in Newark, Boxcar Inc. offers an app that helps commuters find and reserve parking spots at select New Jersey train stations. Boxcar Inc. also runs buses from Madison, Chatham, Westfield, Livingston, West Orange and Cranford into and out of Manhattan.
The company, which was founded in 2016, secured $50,000 in investment through the Angel Investor Tax Credit Program in its seed round of funding. Boxcar Inc. CEO Joe Colangelo indicated the company plans to use the funds to further support infrastructure following the closing of the round.
AptaPharma: Located in Pennsauken, AptaPharma provides clients with an array of oral drug delivery technologies and product development services for the pharmaceutical industry. The company also manufactures a broad range of over-the-counter products.
AptaPharma said it expects to use the $2.2 million it raised from four investors to support the financing of new machinery and equipment and to hire additional researchers. The investments were made into the company’s seed round of funding. AptaPharma, which was founded in 2006, was approved last year for a Grow New Jersey award of $4.52 million to expand its facility in Pennsauken rather than relocating its manufacturing facility to neighboring Pennsylvania.
Urigen Pharmaceuticals: Located within the EDA’s Commercialization Center for Innovative Technologies in North Brunswick, Urigen Pharmaceuticals is a clinical-stage biopharmaceutical company specializing in the design and implementation of innovative products for patients with urological ailments, including Interstitial Cystitis/Bladder Pain Syndrome, among others.
To date, 12 investors have participated in the Angel Investor Tax Credit program, injecting a total of $460,000 into the company. The funding, which went into Urigen’s Series D round, was used to complete Phase II trials of the company’s lead product, URG101, to treat acute pain associated with IC/BPS.