Seed capital can be difficult to raise. Angels meet that need: They are willing to invest in startups in exchange for an equity share of the business. CI administers the state’s Angel Investor Tax Credit Program, which gives angels a credit against Connecticut’s state income tax when they invest at least $25,000 in qualifying businesses. If you qualify, your business will be listed on our website so that angels looking to invest can find your startup. The program cap is $12 million in investments for fiscal year ending June 30.
Qualified Connecticut Businesses:
Gross revenues of under $1 million in the most recent income year
Fewer than 25 employees (including shareholders, members or partners active in company operations)
Companies that have operated in Connecticut for less than seven consecutive years
Companies with at least 75 percent of employees who are Connecticut residents
Companies that have received less than $2 million in eligible investments from angel investors
All industry verticals qualify for any Connecticut business.
The application process involves four steps:
Interested applicants must complete and execute the Qualified Connecticut Business Application. The application along with all documents requested under Part E of the application and the nonrefundable application fee of $250 (payable to Connecticut Innovations, Inc.) must be submitted to:
Connecticut Innovations, Inc.
865 Brook Street
Rocky Hill, CT 06067
Attn: Stepheni Harpin
Once the complete application and requested documents are received, they will be reviewed to determine whether the applicant meets the criteria.
The applicant will be notified by email as to the results of Connecticut Innovations’ review of its application. If the application does not meet established criteria, the email will outline the reasons for denial. If the applicant meets the established criteria, it will receive a email stating such and will be placed on the Qualified Connecticut Company List. The Qualified Connecticut Company List contains the following information about the Connecticut company:
- Company name, location and contact information
- Company’s business activity
- Amount of investment sought by the company
- Type of qualified security to be issued by the company
Once a year, on the anniversary of its approval as a Qualified Connecticut Business, the applicant will be required to recertify the information contained in the application originally submitted to CI to remain on the Qualified Connecticut Company List.