Angel Investor Credit Helps Connecticut Businesses Produce and Sell Products (With Video)

A Groton man had an idea for a new boating safety device, a group of investors decided to back him and his idea, and now the product is on the shelves in a . Sounds simple enough sure, but if it wasn’t for Connecticut’s angel investor tax credit Anthony Viggiano’s idea for a wireless man-overboard system could’ve been just another great idea tossed around at cocktail parties.

Viggiano founded Autotether LLC in 2007 after developing an idea for a wireless man-overboard system that sounds an alarm and stops the engine of a boat when someone falls overboard. But if he wanted the company to expand and produce the system he needed funding.

“Bringing things to reality takes money,” Viggiano said.

He was able to create that reality through the state’s angel investor tax credit. The tax credit created in 2010 provides an income tax credit to so-called angel investors, individuals who give funding for a business startup in exchange for convertible debt or part ownership. Angel investors can receive a maximum of $250,000, equal to 25 percent of their cash investment in new bioscience and technology businesses.

Autotether LLC raised about $505,000 from angel investors and they are hoping to raise and additional $500,000 through other angel investor groups.

The majority of the funds Autotether raised during the past year after the state legislature passed a bill lowering the minimum angel investor requirement from $100,000 to $25,000.

“Small businesses are enormous job creators, and ending this recession will require growing more of them,” said state Senator Andy Maynard who initially proposed lowering the angel investor minimum requirement. “Anthony Viggiano of Autotether is the perfect example of an entrepreneur-he had a great idea, and just needed a few resources to turn that idea into a successful company. Angel investors can provide those resources, and they continue to do so for Autotether. By increasing out state’s tax incentives for angel investments, we have cleared the way for more innovative small businesses to get their start right here in Connecticut.”

Hopefully like Viggiano they will also stay in Connecticut.

“It’s all made in Connecticut,” Viggiano said of his wireless man-overboard device, which retails for $299. The company is based in Chester, Conn., the device is produced and Connecticut. And while the product is sold on the Autotether website and at 140 dealers throughout the country it’s also sold in Connecticut stores including West Marine in Mystic, which sells a variety of boating parts, accessories and gear.

All made possible with a Connecticut idea and local funding. According, to Maynard’s office since the lowering of the investor requirement nine-angel investment deals totaling $2.1 million have closed.

The Angel Investor Forum is holding an Angel Boot camp training session on Feb. 7, 2012 from 9 a.m. to 4 p.m. at the New Haven Lawn Club for anyone interested in becoming an angel investor.