Program Tags: Early Stage Companies

Angel Investor Tax Credit

Angel Investor Tax Credit

Program Overview

The Angel Investor Tax Credit program is offered to investors interested in funding early-stage companies engaged in life sciences research and development, commercialization and manufacturing in Massachusetts. The program provides a taxpayer investor a credit of 20% of the qualifying investment, or 30% if the business is located in a gateway municipality, in a business that has no more than $500,000 in gross revenues in the year prior to eligibility.

Credits are available up to $50,000 in any one taxable year for qualifying investments of up to $125,000 per qualifying business per year and up to $250,000 in cumulative qualifying investments for each qualifying business.

Eligibility & Evaluation

  • Taxpayer Investors must be “accredited” as defined by the U.S. Securities and Exchange Commission and may not be a principal owner of the business or involved in a full-time professional capacity.
  • Qualifying business must be registered to do business in Massachusetts, have 20 or fewer full-time employees at the time of the investment, and have $500,000 or less in gross revenues in the year prior to eligibility.
  • A qualifying investment is a monetary investment that is at risk and is not secured or guaranteed.

Interested applicants will be required to submit an online application. This is a two-step application process that includes information from the taxpayer investor and the qualifying business to meet the requirements for the Massachusetts Life Sciences Center to make an award. Please see sections 4-6 of the solicitation for more information regarding the application process and further details on the eligibility requirements.

Taxpayer investors that receive a tax credit award and the qualifying business in which they have invested are required to provide Annual Reports to monitor compliance.

The deadline to apply is now Jan. 27, 2023 at 10 a.m. EST for submission of applications for qualifying investments made during the period January 1, 2022 to December 31, 2022.

Applications would be considered complete once both the investor and the company has each completed their portion of the application. If there are multiple investors in the same company, the company only has to submit one application for the current round of the program.

Resources

Solicitation

Investor Sample Application

Company Sample Application

View the regulations for the 830 CMR 62.6.5: Angel Investor Tax Credit

Impact on the Ecosystem

To ensure the Massachusetts’ ecosystem remains favorable for investors, we are proud to offer this new Angel Investor Tax Credit to encourage investment throughout the Commonwealth and in our gateway municipalities. We are confident that such investments will create jobs, build a robust workforce, support women and minority-led companies, and propel the development of new therapies, devices, and scientific advancements that are improving patient health and well-being.

Connect with us to Learn More

If you have any questions regarding the application process, e-mail: AngelTax@masslifesciences.com.

Seed Fund

Seed Fund

Program Overview

This program is not currently accepting applications.

The Seed Fund’s mission is to advance innovative and promising life science companies in targeted geographies throughout the Commonwealth by working with partners to leverage resources and promote economic development.

Individual investments of up to $250,000 in a convertible note will be awarded to life sciences start-ups, and up to $1 million of capital investment is available.

Eligibility & Evaluation

The Seed Fund is targeting life sciences companies broadly, which includes therapeutics, medical devices, diagnostics, and bioinformatics/digital health technologies.

Pre-seed to early-stage companies who have not yet raised their first priced round are encouraged to apply for this program.

To be eligible to apply, companies must be located in or intend to locate (with a significant presence or sound hiring/growth strategy) in one of the Seed Fund geographies: Amherst, Beverly, Lowell, Mansfield, North Adams, Springfield, Pittsfield, and Worcester.

At the time of investment, companies must:

  • Be physically located (with a year-long lease) in one of the Seed Fund geographies
  • Produce Certificates of Good Standing from the Department of Revenue and Secretary of State’s Office
  • Employ at least one full-time Massachusetts employee
    • Majority of employees must be employed in MA
    • Detailed offer letter for new FTE or a recent pay-stub indicating full time pay for a MA employee must be produce

Applications are accepted and reviewed on a rolling basis, and the evaluation will consist of a two phase process. In Phase I, submitted applications will be screened, and applicants will be notified within a month whether they will advance to pitch to the group or have an opportunity to schedule a feedback call.  If advanced beyond the pitch, companies will enter Phase II, which consists of deep due diligence over the next few months. All recommendations for investment are subject to approval from the MLSC’s Board of Directors.

Please Note: As part of the convertible note, the MLSC will include a Side Letter, which addresses supplemental language that may be absent from the Note Purchase Agreement. Common conditions include the following:

  • Information rights
  • Board Observer Role
  • Participation rights (a right but not an obligation to purchase its Pro Rata Share of any Equity Securities)
  • Representations (Bad Actor clause, Reps and Warrants, and MFN clause)
  • Put Right to maintain a physical presence in a Seed Fund geography
    • Majority of employees employed in incentivized geography
    • Clawback provision if failure to meet the Put Right

Resources

Informational Overview

Impact on the Ecosystem

The MLSC is pleased to launch its first-ever Seed Fund, which leverages a federal award from the Department of Commerce’s Regional Innovative Strategies Program.

The Seed Fund aims to provide up to $250,000 in convertible notes to early-stage life sciences companies who are located in particular locations to increase visibility of opportunities, highlight the regions resources, and promote economic development overall across the Commonwealth.

Connect with us to Learn More

If you have any questions regarding the application process, e-mail: seedfund@masslifesciences.com.

Milestone Achievement Program

Milestone Achievement Program

Program Overview

The Milestone Achievement Program (MAP) was designed to address the needs of early-stage life sciences companies by providing grant funding to execute critical, value-creating technical milestones. This program aims to fill a gap within the existing funding environment to enable early-stage companies to attract additional follow on funding.

Impact on the Ecosystem

The MLSC recognizes that many innovative companies are a milestone away from reaching an inflection point to further the success of the technology and advance the company overall. 

In 2019, the agency awarded  more than $1.9 million in funding to 10 life sciences companies, located across six Massachusetts communities. 

Early-stage programming like MAP bridges the funding gaps associated with long life sciences R&D cycles. The Commonwealth’s support for early-stage activity helps ensure a diversity of entrepreneurs within the life sciences industry, while enabling new partnerships and collaborations, acquisitions, and continued talent recruitment.

Learn more about our 2019 Milestone Achievement Program awardees.

Connect with us to Learn More

If you have any questions regarding the application process, email: map@masslifesciences.com

Massachusetts Next Generation Initiative

Massachusetts Next Generation Initiative

Program Overview

The MLSC is committed to a life a sciences ecosystem that is diverse, inclusive, and equitable for all members of this industry. To ensure we continue to shift the paradigm, the Massachusetts Next Generation (MassNextGen) Initiative is building off the success of the first five years and launch the next iteration of the program to support a larger pool of entrepreneurs with a more inclusive focus.

Awardees of the program will receive a year-long customized package of support, which includes non-dilutive grant funding and access to a network of seasoned professionals from the life sciences ecosystem helping them to refine their business strategies and effectively raise capital. In addition, awardees will highlight their company to sponsors, awardees, and representatives of venture capital firms at the end of the program year in a “pitch” event.

The application period will run from May 22 – June 30, 2023 at 5 p.m. EST.

Eligibility & Evaluation

  • The applicant Life Science company (“Company”) must be located in the Commonwealth of Massachusetts and registered to do business in Massachusetts. A Certificate of Good Standing from the Massachusetts Secretary of State and Certificate of Good Standing from the Massachusetts Department of Revenue are required for the submission.
  • The Company must be led by an underrepresented entrepreneur (“Applicant”) that identifies as: Female; Black, African American, or Afro Caribbean; Hispanic, Hispanic American, or Latinx/Latin; Indigenous, Native American, or First Nation; Asian American, Pacific Islander, or Native Hawaiian; Transgender, Queer/Non Binary, Nonconforming/Agender; Living with apparent or non-apparent disability, or Neurodiverse; Veteran; or another underrepresented group in the CEO or equivalent position (e.g., President).
  • The CEO or equivalent must be open to executive coaching, including receiving critique and feedback, and must commit to attending executive and business coaching sessions in MA throughout the year-long program.

Please view the full list of eligibility requirements and evaluation process.

Sponsors

Increasing the number of successful entrepreneurs is in the best interest of the entire life science industry, and as such, this initiative is a public-private partnership between the MLSC and our corporate sponsors.

In 2018, Takeda became MassNextGen’s Anchor sponsor as the first private partner to invest in the program. Their leadership and unwavering support to foster a more inclusive and diverse ecosystem continues with their commitment for this next chapter of MassNextGen.

Learn more about the MassNextGen sponsors and how your company can join the movement.

Resources

Info Sessions
– June 12, 10-11 a.m. at LabCentral – register
– June 23, 2023, 11 a.m. – 12 p.m., virtual – register

Sample Application

Eligibility Requirements and Evaluation Process

Deliverables, Confidentiality, and General Conditions

Business and Executive Coaching Session Format and Topics

Program Handout

R.E.D.: Research Equipment Database

D.A.T.A. (Databases, Algorithms, Tools, and Analyses) Repository

Awardees and Coaches

Awardees
Learn more about the MassNextGen awardees and their company

Executive Coaches
Learn about the life science experts guiding the MassNextGen entrepreneurs

Impact on the Ecosystem

In 2018, MassNextGen launched with one goal in mind, to shift the paradigm to build a diverse ecosystem with equal representation. With the support from sponsors like Takeda, King Street Properties, Sanofi, Johnson & Johnson Innovation, Mintz, Mission BioCapital, and LabCentral Ignite, MassNextGen launched as a five year commitment to ensure greater gender parity in the next generation of life science entrepreneurs.

In the first four years, the MLSC deployed more than $2 million in funding to women entrepreneurs and provided over 200 hours of coaching from the elite executive mentoring/coaching network.

Now with 26 companies in the MassNextGen portfolio, the MLSC funding combined with executive coaching and business mentorship have proven invaluable for these women entrepreneurs in building their teams and progressing forward with new opportunities. The program continues to see tremendous success from previous awardees, including:

  • 12 companies have raised a seed or series A financing round
  • Companies have raised nearly $134 million in follow-on funding
  • Companies employ in total 44 additional people
  • There’s been more than 50 coaching sessions
  • Sponsoring organizations have reviewed applications from over 120 early-stage women led companies with an opportunity for follow on discussion

Connect with us to Learn More

If you have any questions regarding the application process, e-mail MassNextGen@masslifesciences.com.

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