Angel Match Program

About this funding opportunity

Open in new Tab ANGEL MATCH PROGRAM

Please be advised that the Angel Match Program has been approved for an additional $20 million in allocated funding, bringing the total funding for this Program to $40,197,631.

You may send an email to Innovation@njeda.gov to speak with a Technology Innovation Team Member.

The Angel Match Program was designed to disburse funding from the State Small Business Credit Initiative (SSBCI), a federal program administered by the US Department of Treasury. Its purpose is to propel the creation of an entrepreneurial ecosystem that stimulates innovation and economic development, providing employment opportunities for New Jersey residents.

This program matches angel investors’ direct investment in early-stage, product-based technology companies within targeted industries on a 1-to-1 basis with unsecured convertible notes ranging from $100,000-$1,000,000.

INVESTMENT STRUCTURE

Convertible note with warrant

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$100,000-$1,000,000 matched 1-to-1 with outside investment

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10-year term, 3% interest, no payment until year 8 and no prepayment penalty

BENEFITS

Stimulates funding from

the investment

community

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Catalyzes industry growth

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Fosters job creation

TARGET APPLICANTS

NJ emerging early-stage companies in targeted sectors

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50% of full-time employees, a minimum of 2 founders, and physical office space in New Jersey

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See more eligibility requirements below. APPROVED ANGEL MATCH PROGRAM COMPANIES PROGRAM DETAILS ELIGIBILITY TARGETED INDUSTRIES SSBCI FEES

PROGRAM DETAILS

The Angel Match Program aligns with the goals of SSBCI, as angel investing is a critical source of early-stage capital to help high-quality start-up ventures build and test their products as well as scale their business models. SSBCI is designed to cause and result in the lending and investment of private capital into small businesses, unlocking capital for companies that would otherwise not have access to it.

NJEDA Investment is in the form of Convertible Promissory notes with warrants equaling 50% of note’s principal. Individual note amounts between $100,000-$1,000,000 based on match funding and NJEDA analysis of company financing and operations, management team and experience, the product and target market, as well as investor type and involvement.

- Notes will reach maturity in 10 years, with no payments for first 7 years

- Notes are matched $1 (NJEDA): $1 (Qualified Outside Investment)

- No restriction on participation in other NJEDA incentive programs

For more information about the Angel Match Program, please review the program brochure.

Companies must close external investments within 60 days of NJEDA issuing a commitment letter.

ELIGIBILITY

Company:

- Early stage within a targeted industry

Please be aware, due to the SSBCI Federal funding source, any businesses that derive revenue from marijuana-related activities or support the end-use of marijuana is not eligible for participation in the Angel Match program.

- Structured as a C-Corp or a LLC with Unit Structure

- Located in physical commercial office, co-working or incubator space in New Jersey

- At least 50 percent of full-time employees working in New Jersey

- No more than 100 total employees working for the company

- A minimum of 2 full-time founders/ C-level executives working in New Jersey

- Company must be registered to do business in New Jersey and in good standing as certified by a valid NJ Tax Clearance Certificate

Business Model:

- Company’s primary business is commercializing and marketing a product (service-based offerings would not be considered eligible)

- Must have minimum revenues of $100,000 within the trailing 12 months (TTM)

- Capital efficient and scalable, revenue growth will significantly outpace the expense growth and funding requirements

- Large, identifiable target market

Outside Investment:

- Matching funds from…

Topic areas: Public Policy and Governance, Smart Cities, Digital Society and E-Inclusion, Workforce Development.

Funding amount

This grant provides Varies in funding.

Deadline

Applications are accepted on a rolling basis; there is no single fixed deadline.

Who can apply

This opportunity is open to the following applicant types:

• Not specified by the program.

Eligibility

The program did not publish a separate eligibility statement. See the official opportunity page for the full eligibility criteria.

Agency

Angel Match Program is administered by New Jersey Economic Development Authority (NJEDA), listed via New Jersey Economic Development Authority.