Since Connecticut cut a threshold under which startup “angel” investors can take tax credits, investments are up six-fold, according to Connecticut Innovations, which administers the tax credit program.
“Connecticut has an impressive high-tech sector, and we are positioning ourselves as the place to be for biotech,” said Gov. Dannel P. Malloy, in a prepared statement. “Angel investors supporting startups and innovation is an important link to fueling the growth of these ventures.”
Under Malloy”™s jobs bill passed last fall, Connecticut changed the minimum investment threshold from $100,000 to $25,000 to encourage investment and attract additional investors to businesses that are pre-qualified to generate the tax credit. The tax credit equals 25 percent of the cash investment, up to $250,000; to qualify, businesses must have under $1 million in annual revenue and less than 25 employees, three-quarters of them in Connecticut.
Since last November, nearly 85 angel investors have applied to participate in the program, and 23 companies have raised $8.6 million. In the preceding six months, just 13 angels applied and nine companies received a total of $2.4 million.
Comments 1