$2 Million in Tax Credits Awarded to New Covington Angel Investment Fund
Thu, 01/29/2015 - 16:50 RCN Newsdesk
A new angel investment fund based in Covington was awarded $2 million in tax credits Thursday by the Kentucky Economic Development Finance Authority.
The Kentucky Investment Fund Act grants tax credits to funds that invest in start-up businesses in Kentucky, a benefit of the angel investor tax credit program adopted in the last General Assembly session.
The Covington-based fund, Connetic, was founded by Brad Zapp and currently operates at the Northern Kentucky eZone, part of the Kentucky Innovation Network, on Madison Avenue in the Republic Bank Building.
Tax credits give investors 40% credit for investments made in Kentucky Qualified businesses.
Zapp, Managing Director of Connetic, said the fund currently has about 50 committed Angels, totaling about $5 million thus far. “We’re a uniquely young group of investors with a median age of just 41 years,” said Zapp. “That’s exciting because we’re able to tap into a previously unused source of capital.”
“This is another step in the right direction,” said Meena Maddali, chief operating officer of Connetic. “We’re starting a movement. Our group is also almost exclusively comprised of entrepreneurs. We want to demonstrate the need for collaboration amongst people and businesses in this space.”
Zapp said the tax credits provide “the extra juice people need to make this kind of investment.”
Connetic expects to have a total of $7 million in its fund.