Knowtions Investors are First to Get EDA Angel
Guarantees
The first angel investment guarantees under the New Jersey Economic Development Authority’s (EDA’s) technology initiative have been approved for investors in Knowtions, Inc., a workforce productivity software provider based in Paramus.
Guarantees totaling $69,300 will be provided to a group of four angels who are investing $210,000 in the emerging technology business, which was founded in 2005. The EDA is providing the guarantees to encourage the investment of pre-venture capital in young technology and life sciences businesses.
“The angel guarantee is one of several resources the EDA offers to encourage the location and growth of technology and life sciences companies and related jobs in New Jersey and we worked closely with the Jumpstart New Jersey Angel Investor Network and the New Jersey Technology Council (NJTC) to develop and implement it,” said EDA’s Program Manager Kathleen W. Coviello. “Our guarantee will cover up to one-third of the investment that angel investors make in a qualified early-stage business.”
The angel guarantee is currently available only to members of Jumpstart, a private, member-led group that invests in early-stage technology companies in the Mid-Atlantic region. The EDA and the NJTC are founding members. Jumpstart angels are accredited investors who, as a group, invest between $200,000 and $500,000 in emerging technology companies and have already invested a total of $4.6 million in nine New Jersey companies.
“There is very little seed money for New Jersey technology businesses and the EDA’s guarantee is a great tool to encourage more qualified investors to actively invest in new technology,” said Katherine O’Neill, Jumpstart’s executive director. “Knowtions is the first of several New Jersey companies that Jumpstart members will invest in that are backed by the EDA angel guarantee.”
Karl Rauch, chief executive officer of Knowtions, said the company will utilize its new capital to fund the continued development of its Coachware® product and build a leadership position in the corporate and government learning market. The innovative software is designed to help organizations operate more efficiently by increasing workforce productivity and accelerating user adoption of new business processes and technologies.
“Knowtions is pleased to have our Jumpstart angel investors participate in the EDA’s angel guarantee program,” Rauch said. “Angel investors are an increasingly important source of capital for early-stage technology companies and the EDA’s angel guarantee encourages a higher level of investment in companies like Knowtions. It also demonstrates New Jersey’s commitment to supporting the development of innovative technologies and growing employment opportunities within the state.”
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