Supporters of state tax credits for angel investors are hoping the Legislature will fund the program this year after investment in Arizona companies dropped off dramatically in 2015.
“When the credits ran out, our investment activity fell off a cliff,” said Curtis Gunn, chairman of Tucson’s Desert Angels.
In 2014, Desert Angels was the third most active investment group in the country, investing almost $7 million into 32 companies. Over the first half of 2015, the group invested about $3.5 million into approximately 20 companies, Gunn said.
“Tax credits ran out in June and the second half of the year we invested less than half a million dollars,” he said, adding that the start of 2016 is on par. “I’ve had members directly say they’re not investing because the tax credits went away.”