In 2019, the New Jersey Economic Development Authority (NJEDA) approved 161 applications for investments into 32 emerging technology life sciences companies through the state’s Angel Investor Tax Credit Program, representing $33.1 million in private capital. More than 120 of the applications, totaling nearly $22 million in investments, were approved in the fourth quarter of the year alone.
Since the program’s inception, the NJEDA has approved 1,322 applications for the injection of $549 million 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. Seen as a means to not only invest in emerging companies but also attract capital into the New Jersey, 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 are in effect for investments made after January 1, 2020, include doubling the tax credit that investors can receive from 10 to 20 percent of a qualified investment. An additional five percent 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.
“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,” said 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.”
The following companies were among nine technology and life sciences businesses that were new to the program in the fourth quarter of 2019:
Radius8, Inc., located in Princeton, is a local engagement platform that delivers hyper-local digital experiences to create new commerce opportunities for any enterprise with physical locations and digital channels. The company sees these experiences as necessary to meet today’s industry standards and consumer expectations and allow clients to improve profitability by increasing consumer engagement. Customers who have adopted Radius8’s technology include Adidas, John Varvatos, Lucky Brand Jeans, Orvis, and many more. Radius8 also participated in the NJEDA’s Net Operating Loss Program.
Deliveright Logistics, Inc. in Bayonne 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. Grasshopper, a cloud-based proprietary platform, provides increased efficiency for operations, pricing, route optimization, tracking, and visibility for customers throughout the logistics chain.
Fusion Recruiting Labs, headquartered in Red Bank, offers human resource departments and staffing agencies software tools to simplify and humanize the hiring process. The company created three products that are software-as-a-service-based recruitment and job distribution platforms; FATj.com, FindaNursingJob.com, and Talenize. These platforms are designed to empower recruitment teams by allowing them to source, connect, and engage quality candidates in the high-demand industries of transportation and healthcare recruitment.
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