Angel investors took advantage of Connecticut's revised tax credit aimed at boosting investment in startup technology ventures to the tune of $8.6 million in the first half of this year, authorities say.
Connecticut Innovations Inc. in Rocky Hill, the state's technology-investment promoter, said the number of angel investors climbed six-fold and investments tripled since state lawmakers enacted and the governor signed a jobs bill last November.
The Angel Investor Tax Credit Program aims to help Connecticut's small, high-tech businesses by stimulating investments from angel investors.
The jobs bill raised the minimum investment threshold from $100,000 to $25,000 to encourage investment and attract additional investors.
Under the program, eligible angel investors may take a credit against their Connecticut state income tax for certain investments made in qualifying businesses. The tax credit equals 25 percent of the cash investment, up to $250,000.
Qualifying businesses must have gross revenues under $1 million in their most recent income year, have fewer than 25 employees -- at least three-fourths of whom live in the state -- and have been in operation in Connecticut for less than seven consecutive years.
CI administers the program on the state's behalf.
According to CI, 84 angels applied to the program in the first six months, pledging investments totaling $8.6 million in 23 companies.
In the six months before the investor eligibility criteria was revised, only 13 angels applied and pledged $2.4 million of investment in nine small tech firms, the agency said.
Since the launch of the program a total of 77 angels completed a total of 85 investments in 30 companies. The sum of their investments is $11.4 million.