Small Business Jobs Act Tax Exemptions Having Immediate Impact on Angel Investments

A new federal law exempting 100 percent of gains from investments in qualified small businesses made between September 27, 2010 through the end of the year, is having an immediate impact on angel investments. According to the Angel Capital Association (ACA), the Small Business Jobs Act of 2010, recently signed into law, has already accelerated activity within the association’s member organizations.

One example is how Ohio TechAngels is using the tax benefit to accelerate a final close on its investment in TheraVasc, a privately held biotechnology venture that relocated from Louisiana to Cleveland.

“TheraVasc just completed its first close of $1.8 million and, due to the year-end expiration of this tax incentive, will now be closing out the remaining portion of the $2.25 million as swiftly as possible,” reported John Huston, manager of Ohio TechAngels. “TheraVasc is the first of several investment opportunities in our pipeline we’re pushing to close by year-end.”

“This provision encourages angels and entrepreneurs to speed up investments that are already in the pipeline,” said Marianne Hudson, ACA’s executive director. “The significance is that entrepreneurs will receive the funds they need to grow their businesses sooner. That means they can hire people which adds
new jobs to the economy.”

For full details, see the release from the Angel Capital Association.