NJ Angel Program Supported 32 Life Science Tech Firms in 2019
The state’s Angel Investor Tax Credit Program spurred the injection of $33.1 million in private capital into the state’s innovation ecosystem.
TRENTON, NJ— The New Jersey Economic Development Authority announced on Tuesday that it approved 161 applications for investments into 32 emerging technology life sciences companies through the state’s Angel Investor Tax Credit Program in 2019.
The state’s Angel Investor Tax Credit Program spurred the injection of $33.1 million in private capital into the state’s innovation ecosystem. More than 120 of the applications, totaling nearly $22 million in investments, were approved in the fourth quarter of the year alone, the NJEDA states.
Since the program’s inception, the NJEDA has approved 1,322 applications for the injection of $549 million in private capital into 94 New Jersey-based technology and life sciences businesses.
New Jersey’s Angel Investor Tax Credit Program offers investors refundable tax credits against qualified investments for New Jersey businesses. The program supports technology businesses with a physical presence in New Jersey that conduct research, manufacturing, or technology commercialization in the state. The Angel Investor Tax Credit Program is open to investors throughout the world, not just those located in the Garden State.
Investors participating in the program in 2020 will benefit from an expansion of the program signed into legislation by Governor Phil Murphy in July 2019.
Changes to the program, which went into effect for investments made after Jan. 1, 2020, include doubling the tax credit that investors can receive—from 10% to 20%—of a qualified investment. An additional 5% bonus has been added to the program for investments in a business located in a qualified opportunity zone, low-income community, or a business that is certified as minority- or women-owned by the state.
“Attracting investments into early-stage New Jersey companies is pivotal to Governor Murphy’s vision of creating the most diverse and inclusive innovation ecosystem, one centered around the Garden State’s talented workforce,” says NJEDA Chief Executive Officer Tim Sullivan. “We anticipate increased interest in the Angel Investor Tax Credit Program in 2020, as investors realize the benefits these impactful program enhancements have on their investments into emerging New Jersey companies.”
NJEDA reports that among the new companies that entered the program in the fourth quarter of 2019 were:
• Princeton, NJ-based Radius8, Inc., a local engagement platform that delivers hyper-local digital experiences to create new commerce opportunities for any enterprise with physical locations and digital channels;
• Deliveright Logistics, Inc. of Bayonne, which has developed patented technology called Grasshopper, which bridges the gap between e-commerce retailers of heavy goods (i.e. furniture) and final mile companies that specialize in delivering these products and
• Fusion Recruiting Labs headquartered in Red Bank, which offers human resource departments and staffing agencies software tools to simplify the hiring process.