Which Minnesota Tech Startups Are Leveraging Angel Tax Credits?


Minnesota Angel Investor Tax CreditThe jobs bill — aka angel investor tax credit — was created earlier this year to stimulate startup growth in Minnesota by financially incentivising angels with a 25% income tax discount on qualifying early-stage business investments.

The measure appears to be ramping up before the close of the year when the clock resets and everyone is forced to re-qualify for 2011.

Passed into law on April 1, 2010, the  bill allocates $60m in deductions over the next 5 years with $11m in available in 2010 & $12m/yr for 2011-2014. Both the investor(s) and the business must be certified through the Minnesota Department of Employment and Economic Development (DEED) prior to credit issuancewhich brings us to the goodstuff.

According to DEED reports through 11/8, nineteen different cross-sector ventures  have seized the opportunity to raise a collective $10m in funding under the legislation,  awarding investors $2.5m in tax credits.  Since the focus of our interests lies within the realm of High Tech/IT/SaaS/etc., here’s what we’ve picked up on: