The New Jersey Economic Development Authority approved a record 61 applications for the state’s Angel Investor Tax Credit Program during the third quarter.
The approvals will bring nearly $21 million in private capital to 13 technology and life sciences companies, as many of the applications are from the same company and some investors were approved for more than one investment.
State officials said they hope this uptick in activity is a result of Gov. Phil Murphy’s often-stated goal of re-establishing New Jersey as the state of innovation.
“We are seeing a significant upswing in interest in the Angel Investor Tax Program this year, which furthers Gov. Murphy’s goal of creating a stronger and fairer economy by not only investing in emerging companies, but also attracting capital into our state,” Tim Sullivan, the CEO of the EDA, said.
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 2.5 times year-over-year growth in investment amount and approved tax credits compared with 2017. Six companies participated in the Angel Investor Tax Credit Program for the first time between July and September.
Companies that participated in the Angel Investor Tax Credit Program for the first time during the third quarter of 2018 include:
It provides single-patient use, physician non-preference medical devices. These devices are used by hospitals, ambulatory surgery centers and home care customers in the areas of anesthesia and respiratory.
Trinity benefited from over $3.9 million in investments made by 15 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.
It 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.
The Holmdel-based Hope Portal Services 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.
The company, 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.