The Minnesota Angel Tax Credit, a popular incentive program that has helped 430 startups since 2010, will start accepting applications again on July 1, 2019.

The Angel Tax Credit program is now part of Launch Minnesota, a new initiative to grow Minnesota’s startup ecosystem.

The incentive program stimulates private investments in emerging Minnesota businesses by providing a 25 percent credit to investors or investment funds that put money into startup companies focused on high technology, new proprietary technology, or a new proprietary product, process or service in specified fields. By encouraging investors, this program helps new businesses at a critical time in their development.

We’re committed to fostering an ecosystem that helps grow employment and the economy – while laying the groundwork for a future where Minnesota is home to the next innovation hub. From 3M to Medtronic, this state has given birth to many technology leaders over the years, and we want that to continue and accelerate.

A total of $20 million available through 2021

The Minnesota Legislature authorized $10 million for the Angel Tax Credit program in 2019, followed by another $10 million in 2021. We will start accepting applications on Monday, July 1, 2019 and will continue as long as funds are still available. Go to the Angel Tax Credit section of DEED’s website for more information.

New this year

Half of the funding each year is reserved for minority- and women-owned and managed businesses, as well as businesses located in Greater Minnesota. There is also a reduced minimum required for investment in these businesses.

The minimum qualifying investment is $10,000 for non-targeted businesses. The minimum qualifying investment for women/minority/veteran and Greater Minnesota businesses is $7,500.

Learn more at our Facebook Live event

Join me, along with Program Manager Jeff Nelson, at a Facebook Live event on Thursday, June 27, at 2 p.m. Learn more about the Angel Tax Credit program, hear directly from program leadership and get your individual questions answered. Head over to DEED’s Facebook page for more information and to participate.

Making an impact

Among the many successful companies that have been helped in the past by the Angel Tax Credit:

• Sezzle is a Minneapolis financial technology firm that lets users pay for online purchases in installments. The company plans to list its securities on the Australian Stock Exchange in July and hopes to raise close to $30 million.
• When I Work was started by a Thief River Falls native who was challenged getting his hourly work schedule. As of last fall, the firm had about 140 employees and was valued at more than $100 million.
• Miromatrix Medical is an Eden Prairie biotech startup that uses research from the University of Minnesota to grow transplantable human organs. It was named in May as one of 15 companies from a pool of about 150 firms to receive a national award from the Kidney Innovation Accelerator.
• 75F is a Burnsville company that has won many awards for its energy efficient HVAC technology. It was selected earlier this year to join the Wells Fargo Innovation Incubator program, an invitation-only tech incubator co-administered by the National Renewable Energy Laboratory.
• Recombinetics is a St. Paul company that develops and commercializes gene editing technology for human health and animal agriculture markets.

I hope you’ll take advantage of this program, or pass along this information to others you know who might benefit.

– Commissioner Steve Grove