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Evaluation of the Minnesota (Minnesota Department of Revenue)

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Evaluation of the Minnesota Angel Tax Credit Program: 2010-2012
Economic Development Research Group, Inc.
Evaluation of the Minnesota
Angel Tax Credit Program:
2010-2012
Prepared in accordance with statute 116J.8737 Subd. 10 for the Minnesota Senate
and House Committees with jurisdiction over taxes and economic development.
Prepared by:
Economic Development Research Group, Inc.
155 Federal Street, Suite 600, Boston, MA 02110
with
Karl F. Seidman Consulting Services
P.O. Box 425575, Kendall Square, Cambridge, MA 02142
Delivered to the Minnesota Department of Revenue Contracts Unit on Jan. 31, 2014
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Evaluation*of*the*Minnesota*Angel*Tax*Credit*Program:*2010=2012*
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Evaluation*of*the*Minnesota*Angel*Tax*Credit*Program:*2010=2012*
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Evaluation*of*the*Minnesota*Angel*Tax*Credit*Program:*2010=2012*
!
Economic*Development*Research*Group,*Inc.!! Page*18!
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Evaluation*of*the*Minnesota*Angel*Tax*Credit*Program:*2010=2012*
!
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Evaluation*of*the*Minnesota*Angel*Tax*Credit*Program:*2010=2012*
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Evaluation*of*the*Minnesota*Angel*Tax*Credit*Program:*2010=2012*
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Evaluation*of*the*Minnesota*Angel*Tax*Credit*Program:*2010=2012*
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Evaluation*of*the*Minnesota*Angel*Tax*Credit*Program:*2010=2012*
!
Economic*Development*Research*Group,*Inc.!! Page*69!
@ CONCLUSION&
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8
!
!
Economic*Development*Research*Group,*Inc.!! Page*70!
APPENDIX'A:!MINNESOTA(STATUT ES &
DDG]1BPOP!8>*AA!NR8CF:88!CFp:8+>:F+!+*m!,T:UC+1!
!
83H71!DJ1!!-%(.%/0!$#/;3/<&(61!
(a) No later than December 31, 2012, the commissioner of revenue, after consultation with the
commissioners of management and budget and employment and economic development, shall
contract with a qualified outside entity or individual to evaluate the effects of the small business
investment tax credit on the Minnesota economy. The contractor must not be associated with,
employed by, or have contracts with the entities involved in or associated with the venture capital,
angel investment, life science, or high technology industries. The program evaluation must be
completed by January 2014, and provided to the chairs and ranking minority members of the
legislative committees having jurisdiction over taxes and economic development in the senate and
the house of representatives, in compliance with sections 3.195 and 3.197. The program evaluation
must include, in addition to any other matters the commissioner considers relevant to evaluating the
effectiveness of the credit, analysis of:
(1) the effect of the credit on the level of equity investment in qualified small businesses in
Minnesota, including investments by angel investors, venture capital firms, and other sources of
equity capital for startup businesses;
(2) the effect of the credit, if any, on investment in firms other than qualified small
businesses;
(3) the amount of economic activity, including the number of jobs and the wages of those
jobs, generated by qualified small businesses that received investments that qualified for the credit;
(4) the incremental change in Minnesota state and local taxes paid as a result of the allowance
of the credit; and
(5) the net benefit to the Minnesota economy of allowance of the credit relative to alternative
uses of the resources, such as increasing the research and development credit or reducing the
corporate franchise tax rate.
(b) $100,000 is appropriated to the commissioner of revenue from the general fund for fiscal
year 2013 for the purposes of this evaluation. Any unspent amount of this appropriation carries
over to fiscal year 2014. The allocation of the credit in subdivision 5 for taxable year 2013 is
reduced by $100,000. This appropriation may be used to hire a consultant or consultants to prepare
all or part of the study.
(c) To the extent necessary to complete the program evaluation, and as provided in
subdivision 8, the consultant or consultants may request from the commissioner of revenue tax
return information of taxpayers who are qualified small businesses, qualified investors, and
qualified funds. To the extent necessary to complete the program evaluation, the consultant or
consultants may request from the commissioner of employment and economic development
applications for certification and annual reports made by qualified small businesses, qualified
investors, and qualified funds.
The consultant or consultants may not disclose or release any data received under this section
except as permitted for a government entity under chapter 13, and is subject to the penalties and
remedies provided in law for violation of that chapter.
Page 1
Investor SurveyInvestor SurveyInvestor SurveyInvestor Survey
TheMinnesotaLegislaturehasmandatedanevaluationoftheeconomicandfiscalimpactsoftheMinnesotaAngelInvestmentTaxCredit
Program(
“
AngelTaxCredit
”
).TheEconomicDevelopmentResearchGroup(EDRG)washiredtoconductthisevaluation,andissurveyinginvestors
whohavemadeangelinvestmentsunderthisprogramtohelpassesstheprogram
’
simpact.
AllinformationthatyouprovidewillbeviewedonlybyEDRG.Wewillnotdiscloseorreleaseanydatayouprovide,andonlyaggregatedor
summarizedresultsoverallrespondinginvestorswillbereportedpublicly.
Tennessen Warning
:PursuanttoMinnesotaStatutes,Section13.04,subd.2,thisnoticeexplainswhywearerequestingprivatedataaboutyou,
howwewilluseit,andyourobligationtoprovidethedata.ThisdataisbeingrequestedtoevaluatetheMinnesotaAngelInvestmentTaxCredit.
Thedatayouprovidewillbeaggregatedwithotherresponseswereceiveandusedinsummaryforminanassessmentoftheeconomicimpactof
theprogram.Thissurveyisvoluntaryandyouarenotrequiredtoprovidetherequestedinformation,butyourresponsewillassistinourevaluation
ofthetaxcredit.Wemaynotdiscloseorreleaseanydatayouprovidetousexceptasrequiredbylaw.
Inthissurvey,
Angel Investment
meansacashinvestmentinafirmmadeinexchangeforcommonstock,apartnershipormembershipinterest,
preferredstock,debtwithmandatoryconversiontoequity,oranequivalentownershipinterestapprovedbytheMinnesotaCommissionerof
EmploymentandEconomicDevelopment.
Page 2
Investor SurveyInvestor SurveyInvestor SurveyInvestor Survey
1. Investor Name
About Your Qualified Angel Investments between 2010 and 2012
ThissectionofthesurveywilladdressonlythoseangelinvestmentsthatqualifiedfortheMinnesotaAngelTaxCredit.Includeinvestmentsyou
madedirectlyinabusinessandomitinvestmentsinaQualifiedInvestmentFund(addressedinaseparatesurveyofQualifiedInvestment
Funds).
2. Regarding firms in which you have made Qualified Angel Investments, if you had any of
the relationships listed in the table below when the Qualified Angel Investment was made,
please indicate the NUMBER of Qualified Angel Investments made.
3. Regarding firms in which you have made Qualified Angel Investments, if you had any of
the relationships listed in the table below when the Qualified Angel Investment was made,
please indicate the VALUE ($) of Qualified Angel Investments made.
Iamaprincipal,founder,
executiveorboardmember
ofthefirm(s).
Iamanimmediatefamily
member(spouse,parent,
sibling,orchildortheir
spouse)ofaprincipal,
founderorexecutiveofthe
firm(s).
Iamaprincipal,founder,
executiveorboardmember
ofthefirm(s).
Iamanimmediatefamily
member(spouse,parent,
sibling,orchildortheir
spouse)ofaprincipal,
founderorexecutiveofthe
firm(s).
Page 3
Investor SurveyInvestor SurveyInvestor SurveyInvestor Survey
4. In how many firms headquartered
within
the Twin Cities metro area (Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott and Washington counties) did you make Qualified Angel
Investments?
5. In how many firms headquartered
outside
the Twin Cities metro area (Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott and Washington counties) did you make Qualified Angel
Investments?
6. For how many of these firms did you take on the following roles after making an angel
investment?
Servedontheboardof
directors
Servedasanofficer
Servedasamentortothe
firmfounderorother
executive
None
nmlkj
1
nmlkj
2
nmlkj
3
nmlkj
4
nmlkj
Other(pleasespecify)
None
nmlkj
1
nmlkj
2
nmlkj
3
nmlkj
4
nmlkj
Other(pleasespecify)
Page 4
Investor SurveyInvestor SurveyInvestor SurveyInvestor Survey
7. How did you learn about the specific investment opportunities in which your fund made
Qualified Angel Investments?
Checkallresponsesthatapply.
*TwinCitiesMetroisdefinedasAnoka,Carver,Dakota,Hennepin,Ramsey,ScottandWashingtoncounties.
TwinCitiesMetro*opportunities
OutsideTwinCitiesMetro*Opportunities
Iamaprincipal,founderor
executiveinthecompany
(ies)
gfedc gfedc
Directlyfromthefirm
principal,founderor
executive
gfedc gfedc
Fromparticipatinginan
angelinvestmentnetwork
gfedc gfedc
Throughareferralfrom
anotherangelinvestor,
angelinvestmentnetwork
orfund
gfedc gfedc
FromtheQualifiedSmall
Businesslistcompiledby
theDepartmentof
Employmentand
EconomicDevelopment
(DEED)
gfedc gfedc
Fromanaccountantor
attorney
gfedc gfedc
Throughabusiness
associationornetwork
gfedc gfedc
Fromaneconomic
developmentorganization
gfedc gfedc
Fromaco
worker,other
professionalcolleagueor
friend
gfedc gfedc
Throughweborother
mediaresearch
gfedc gfedc
Other(pleasespecify)
Page 5
Investor SurveyInvestor SurveyInvestor SurveyInvestor Survey
About Non
Qualifying Angel Investments between 2010 and 2012
Thissectionofthesurveywilladdressangelinvestmentsthat
did not
qualifyfortheMinnesotaAngelTaxCredit
8. For the years 2010 to 2012, did you make any angel investments that did not qualify for
the Minnesota angel tax credit, either within Minnesota or elsewhere? If NO, skip to next
page.
9. If yes, please indicate for
2010
, the number of firms in which you invested and the value
($) of these
non
qualifying angel investments
made in Minnesota
based firms and in firms
based outside Minnesota, and the number of firms receiving and value ($) of investments
outside Minnesota for which you received any non
Minnesota tax credits.
Numberof
Minnesota
based firms
receiving
investments
Totalvalueofinvestments
($)in
Minnesota based
firms
Numberof
firms based
outside Minnesota
receivinginvestments
Totalvalueofinvestments
($)in
firms based outside
Minnesota
Numberof
firms based
outside Minnesota
that
receivednon
Minnesotatax
credits
Totalvalueofinvestments
($)in
firms based outside
Minnesota
thatreceived
non
Minnesotataxcredits
Yes
nmlkj
No
nmlkj
Page 6
Investor SurveyInvestor SurveyInvestor SurveyInvestor Survey
10. If yes, please indicate for
2011
, the number of firms in which you invested and the value
($) of these
non
qualifying angel investments
made in Minnesota
based firms and in firms
based outside Minnesota, and the number of firms receiving and value ($) of investments
outside Minnesota for which you received any non
Minnesota tax credits.
Numberof
Minnesota
based firms
receiving
investments
Totalvalueofinvestments
($)in
Minnesota based
firms
Numberof
firms based
outside Minnesota
receivinginvestments
Totalvalueofinvestments
($)in
firms based outside
Minnesota
Numberof
firms based
outside Minnesota
that
receivednon
Minnesotatax
credits
Totalvalueofinvestments
($)in
firms based outside
Minnesota
thatreceived
non
Minnesotataxcredits
Page 7
Investor SurveyInvestor SurveyInvestor SurveyInvestor Survey
11. If yes, please indicate for
2012
, the number of firms in which you invested and the value
($) of these
non
qualifying angel investments
made in Minnesota
based firms and in firms
based outside Minnesota, and the number of firms receiving and value ($) of investments
outside Minnesota for which you received any non
Minnesota tax credits.
12. Were you a principal, founder or executive in any of the firms when you made a
non
qualifying angel investment
?
13. If yes, please indicate the number of such firms and value ($) of non
qualifying angel
investments that you made in these firms in which you were a principal, founder or
executive.
Numberof
Minnesota
based firms
receiving
investments
Totalvalueofinvestments
($)in
Minnesota based
firms
Numberof
firms based
outside Minnesota
receivinginvestments
Totalvalueofinvestments
($)in
firms based outside
Minnesota
Numberof
firms based
outside Minnesota
that
receivednon
Minnesotatax
credits
Totalvalueofinvestments
($)in
firms based outside
Minnesota
thatreceived
non
Minnesotataxcredits
Numberoffirms
Value($)
Yes
nmlkj
No
nmlkj
Page 8
Investor SurveyInvestor SurveyInvestor SurveyInvestor Survey
14. If any of these non
qualifying angel investments in Minnesota
based firms were
an
outgrowth of or resulted from your participation in
the Angel Tax Credit Program, please
list them in the table below.
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
Page 9
Investor SurveyInvestor SurveyInvestor SurveyInvestor Survey
About Angel Investments Prior to 2010
Thissectionofthesurveywilladdressallyourangelinvestmentsmadepriorto2010.
15. Did you make
any angel investments prior to 2010, either to firms based within
Minnesota or elsewhere? If NO, skip to Question 19.
16. In what year did you first make an angel investment?
17. For the period
2004 through 2006
, please indicate the number of firms receiving and
value ($) of angel investments that you made in Minnesota
based firms and for firms based
outside Minnesota.
Numberof
Minnesota
based firms
thatreceived
investments
Totalvalueofinvestments
($)in
Minnesota based
firms
Numberof
firms based
outside Minnesota
that
receivedinvestments
Totalvalueofinvestments
($)in
firms based outside
Minnesota
Numberof
firms based
outside Minnesota
that
receivednon
Minnesotatax
credits
Totalvalueofinvestments
($)in
firms based outside
Minnesota
thatreceived
non
Minnesotataxcredits
Yes
nmlkj
No
nmlkj
Page 10
Investor SurveyInvestor SurveyInvestor SurveyInvestor Survey
18. For the period
2007 through 2009
, please indicate the number of firms receiving and
value ($) of angel investments that you made in Minnesota
based firms and for firms based
outside Minnesota.
19. Had the Minnesota Angel Investment Tax Credit
not existed
, how would you have used
the funds you invested in a Qualified Angel Investment for that particular year?
Foreach
year,checkonestatementthatbestapplies.
Numberof
Minnesota
based firms
thatreceived
investments
Totalvalueofinvestments
($)in
Minnesota based
firms
Numberof
firms based
outside Minnesota
that
receivedinvestments
Totalvalueofinvestments
($)in
firms based outside
Minnesota
Numberof
firms based
outside Minnesota
that
receivednon
Minnesotatax
credits
Totalvalueofinvestments
($)in
firms based outside
Minnesota
thatreceived
non
Minnesotataxcredits
2010
2011
2012
Ididnotmakeany
QualifiedAngelInvestment
thisyear.
gfedc gfedc gfedc
Iwouldhavemadethe
sameinvestment(s)in
qualifyingsmall
businesses.
gfedc gfedc gfedc
Iwouldhavemadesmaller
investment(s)inqualifying
smallbusinesses.
gfedc gfedc gfedc
Iwouldnothavemadeany
investmentsinqualified
smallbusinesses.
gfedc gfedc gfedc
Page 11
Investor SurveyInvestor SurveyInvestor SurveyInvestor Survey
20. If you would have made smaller investment(s) in qualifying small businesses in any
year between 2010 and 2012, what
percentage (%) of the actual investment
would you
have made? (
Leaveblankforyearsthatarenotapplicable.
)
21. In Question 19, if you would have made smaller or no investment(s) in qualifying small
businesses in any year between 2010 and 2012, how else would you have used the
funds?
Foreachyear,checkonestatementthatbestapplies.
2010
2011
2012
2010
2011
2012
Notapplicable
gfedc gfedc gfedc
Iwouldhavespentthe
fundsandnotinvested
them.
gfedc gfedc gfedc
Iwouldhavemadeangel
investmentsinother
Minnesota
based
businesses.
gfedc gfedc gfedc
Iwouldhavemadeangel
investmentsinothernon
Minnesotabased
businesses.
gfedc gfedc gfedc
Iwouldhaveinvestedin
publiclytradedequities
(includingindividualstocks,
mutualfunds,ETF,etc.).
gfedc gfedc gfedc
Iwouldhaveinvestedin
taxable(underMinnesota
stateincometaxes)
publiclytradedfixed
incomeinvestments
(includingindividualnotes
orbonds,mutualfunds,
ETF,etc.).
gfedc gfedc gfedc
Iwouldhaveinvestedin
tax
exempt(under
Minnesotastateincome
taxes)fixedincome
investments(including
individualnotesorbonds,
mutualfunds,ETF,etc.).
gfedc gfedc gfedc
Iwouldhavekeptthefunds
inshort
termcash
investments.
gfedc gfedc gfedc
Otheruseorinvestment.Pleasedescribe:
Page 12
Investor SurveyInvestor SurveyInvestor SurveyInvestor Survey
22. How has your awareness of Minnesota early stage businesses and angel investment
opportunities changed in the following areas as a result of your fund
’
s participation in the
Angel Tax Credit Program?
Checkallresponsesthatapply.
23. Please describe any other outcomes or impacts that have resulted from your
participation in the Angel Tax Credit Program.
Thank you for completing the survey.
Increased
Same/NoChange
NoOpinion
IntheTwinCitiesMetro
area
gfedc gfedc gfedc
OutsidetheTwinCities
Metroarea
gfedc gfedc gfedc
Amongwomen
owned
businesses
gfedc gfedc gfedc
Amongminority
owned
businesses
gfedc gfedc gfedc
Newinnovations,
technologiesorindustries
gfedc gfedc gfedc
5
5
6
6
Pleasespecifynewinnovations,technologies,industriesoranyotherawarenessareas
Page 1
Investment Fund SurveyInvestment Fund SurveyInvestment Fund SurveyInvestment Fund Survey
TheMinnesotaLegislaturehasmandatedanevaluationoftheeconomicandfiscalimpactsoftheMinnesotaAngelInvestmentTaxCredit
Program(
“
AngelTaxCredit
”
).TheEconomicDevelopmentResearchGroup(EDRG)washiredtoconductthisevaluation,andissurveying
QualifiedInvestmentFundsthathavemadeangelinvestmentsunderthisprogramtohelpassesstheprogram
’
simpact.
AllinformationthatyouprovidewillbeviewedonlybyEDRG.Wewillnotdiscloseorreleaseanydatayouprovide,andonlyaggregatedor
summarizedresultsoverallrespondinginvestmentfundswillbereportedpublicly.
Tennessen Warning
:PursuanttoMinnesotaStatutes,Section13.04,subd.2,thisnoticeexplainswhywearerequestingprivatedataaboutyou,
howwewilluseit,andyourobligationtoprovidethedata.ThisdataisbeingrequestedtoevaluatetheMinnesotaAngelInvestmentTaxCredit.
Thedatayouprovidewillbeaggregatedwithotherresponseswereceiveandusedinsummaryforminanassessmentoftheeconomicimpactof
theprogram.Thissurveyisvoluntaryandyouarenotrequiredtoprovidetherequestedinformation,butyourresponsewillassistinourevaluation
ofthetaxcredit.Wemaynotdiscloseorreleaseanydatayouprovidetousexceptasrequiredbylaw.
Inthissurvey,
Angel Investment
isdefinedasacashinvestmentinafirmmadeinexchangeforcommonstock,apartnershipormembership
interest,preferredstock,debtwithmandatoryconversiontoequity,oranequivalentownershipinterestapprovedbytheMinnesotaCommissionerof
EmploymentandEconomicDevelopment.
Page 2
Investment Fund SurveyInvestment Fund SurveyInvestment Fund SurveyInvestment Fund Survey
About Your Qualified Investment Fund
1. Qualified Investment Fund Name
2. Year Fund was Organized
3. State in Which Fund is Organized
4. City Location of Fund or Fund Manager
’
s Principal Office
Note: From this point on, the survey will refer to your Qualified Investment Fund as
“
your fund
”
for brevity.
Page 3
Investment Fund SurveyInvestment Fund SurveyInvestment Fund SurveyInvestment Fund Survey
About Capital Raised for Your Fund
5. For
2010
, indicate a) the number of investors who invested in your fund
and
b) the
amount ($) of capital raised by your fund for making angel investments (
“
Angel Investment
Capital
”
).
6. For
2011
, indicate a) the number of investors who invested in your fund
and
b) the
amount ($) of capital raised by your fund for making angel investments (
“
Angel Investment
Capital
”
).
7. For
2012
, indicate a) the number of investors who invested in your fund
and
b) the
amount ($) of capital raised by your fund for making angel investments (
“
Angel Investment
Capital
”
).
Numberofinvestors
TotalAngelInvestment
Capital($)
Numberofinvestors
TotalAngelInvestment
Capital($)
Numberofinvestors
TotalAngelInvestment
Capital($)
Page 4
Investment Fund SurveyInvestment Fund SurveyInvestment Fund SurveyInvestment Fund Survey
About Qualified Angel Investments between 2010 and 2012
ThissectionofthesurveywilladdressonlythoseangelinvestmentsthatqualifiedfortheMinnesotaAngelTaxCredit.
8. In how many firms headquartered
within
the Twin Cities metro area (Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott and Washington counties) did your fund make Qualified
Angel Investments?
9. In how many firms headquartered
outside
the Twin Cities metro area (Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott and Washington counties) did your fund make Qualified
Angel Investments?
None
nmlkj
1
nmlkj
2
nmlkj
3
nmlkj
4
nmlkj
Other(pleasespecify)
None
nmlkj
1
nmlkj
2
nmlkj
3
nmlkj
4
nmlkj
Other(pleasespecify)
Page 5
Investment Fund SurveyInvestment Fund SurveyInvestment Fund SurveyInvestment Fund Survey
10. How did you learn about the specific investment opportunities in which your fund
made Qualified Angel Investments?
Checkallresponsesthatapply.
*TwinCitiesMetroisdefinedasAnoka,Carver,Dakota,Hennepin,Ramsey,ScottandWashingtoncounties.
TwinCitiesMetro*opportunities
OutsideTwinCitiesMetro*Opportunities
Directlyfromthefirm
principal,founderor
executive
gfedc gfedc
Fromparticipatinginan
angelinvestmentnetwork
gfedc gfedc
Throughareferralfrom
anotherangelinvestor,
angelinvestmentnetwork
orfund
gfedc gfedc
FromtheQualifiedSmall
Businesslistcompiledby
theDepartmentof
Employmentand
EconomicDevelopment
(DEED)
gfedc gfedc
Fromanaccountantor
attorney
gfedc gfedc
Throughabusiness
associationornetwork
gfedc gfedc
Fromaneconomic
developmentorganization
gfedc gfedc
Fromaco
worker,other
professionalcolleagueor
friend
gfedc gfedc
Throughweborother
mediaresearch
gfedc gfedc
Other(pleasespecify)
Page 6
Investment Fund SurveyInvestment Fund SurveyInvestment Fund SurveyInvestment Fund Survey
About Non
Qualifying Angel Investments between 2010 and 2012
Thissectionofthesurveywilladdressangelinvestmentsthat
did not
qualifyfortheMinnesotaAngelTaxCredit
11. For the years 2010 to 2012, did your fund make any angel investments that did not
qualify for the Minnesota angel tax credit, either within Minnesota or elsewhere? If NO, skip
to next page.
12. If YES, please indicate for
2010
, the number of firms in which you invested and the
value ($) of these
non
qualifying angel investments
made in Minnesota
based firms and in
firms based outside Minnesota, and the number of firms receiving and value ($) of
investments outside Minnesota that received non
Minnesota tax credits.
Numberof
Minnesota
based firms
receiving
investments
Totalvalueofinvestments
($)in
Minnesota based
firms
Numberof
firms based
outside Minnesota
receivinginvestments
Totalvalueofinvestments
($)in
firms based outside
Minnesota
Numberof
firms based
outside Minnesota
that
receivednon
Minnesotatax
credits
Totalvalueofinvestments
($)in
firms based outside
Minnesota
thatreceived
non
Minnesotataxcredits
Yes
nmlkj
No
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Page 7
Investment Fund SurveyInvestment Fund SurveyInvestment Fund SurveyInvestment Fund Survey
13. If YES, please indicate for
2011
, the number of firms in which you invested and the
value ($) of these
non
qualifying angel investments
made in Minnesota
based firms and in
firms based outside Minnesota, and the number of firms receiving and value ($) of
investments outside Minnesota that received non
Minnesota tax credits.
Numberof
Minnesota
based firms
receiving
investments
Totalvalueofinvestments
($)in
Minnesota based
firms
Numberof
firms based
outside Minnesota
receivinginvestments
Totalvalueofinvestments
($)in
firms based outside
Minnesota
Numberof
firms based
outside Minnesota
that
receivednon
Minnesotatax
credits
Totalvalueofinvestments
($)in
firms based outside
Minnesota
thatreceived
non
Minnesotataxcredits
Page 8
Investment Fund SurveyInvestment Fund SurveyInvestment Fund SurveyInvestment Fund Survey
14. If YES, please indicate for
2012
, the number of firms in which you invested and the
value ($) of these
non
qualifying angel investments
made in Minnesota
based firms and in
firms based outside Minnesota, and the number of firms receiving and value ($) of
investments outside Minnesota that received non
Minnesota tax credits.
Numberof
Minnesota
based firms
receiving
investments
Totalvalueofinvestments
($)in
Minnesota based
firms
Numberof
firms based
outside Minnesota
receivinginvestments
Totalvalueofinvestments
($)in
firms based outside
Minnesota
Numberof
firms based
outside Minnesota
that
receivednon
Minnesotatax
credits
Totalvalueofinvestments
($)in
firms based outside
Minnesota
thatreceived
non
Minnesotataxcredits
Page 9
Investment Fund SurveyInvestment Fund SurveyInvestment Fund SurveyInvestment Fund Survey
15. If any of these non
qualifying angel investments in Minnesota
based firms were
an
outgrowth of or resulted from your participation in
the Angel Tax Credit Program, please
list them in the table below.
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
FirmInvestmentRecipient
Name
ValueofInvestment($)
Page 10
Investment Fund SurveyInvestment Fund SurveyInvestment Fund SurveyInvestment Fund Survey
Angel Investments Prior to 2010
Thissectionofthesurveywilladdressallangelinvestmentsmadebyyourfundpriorto2010.
16. Did your fund make
any angel investments prior to 2010, either to firms based within
Minnesota or elsewhere? If NO, skip to Question 19.
17. How many firms received angel investments from your fund prior to 2010?
18. What percent (%) of these firms that received pre
2010 investments were based in
Minnesota?
Yes
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No
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Page 11
Investment Fund SurveyInvestment Fund SurveyInvestment Fund SurveyInvestment Fund Survey
About Your Fund Manager or Principal Managing Investor
(“
FundManager
”
isusedforbrevityhereafter).
ThissectionofthesurveywilladdressotherangelinvestmentfundsestablishedbyyourFundManagerpriorto2010.
19. If your Fund Manager organized and managed other angel investment funds prior to
2010, please complete the following
20. For the period
2004 through 2006
, please indicate the number of firms that received
angel investments from your Fund Manager's other funds and the value ($) of these
investments.
Numberoffunds
organized/managedpriorto
2010
Totalinvestmentcapital($)
raisedinthefunds
organizedpriorto2010
Numberof
Minnesota
based firms
receivingangel
investments
Totalvalueofinvestments
($)in
Minnesota based
firms
Numberof
firms based
outside Minnesota
receivingangelinvestments
Totalvalueofinvestments
($)in
firms based outside
Minnesota
Numberof
firms based
outside Minnesota
that
receivednon
Minnesotatax
credits
Totalvalueofinvestments
($)in
firms based outside
Minnesota
thatreceived
non
Minnesotataxcredits
Page 12
Investment Fund SurveyInvestment Fund SurveyInvestment Fund SurveyInvestment Fund Survey
21. For the period
2007 through 2009
, please indicate the number of firms that received
angel investments from your Fund Manager's other funds and the value ($) of these
investments.
22. How has your awareness of Minnesota early stage businesses and angel investment
opportunities changed in the following areas as a result of your fund
’
s participation in the
Angel Tax Credit Program?
Checkallresponsesthatapply.
23. Please describe any other outcomes or impacts that have resulted from your fund or
investment management company
’
s participation in the Angel Tax Credit Program
Thank you for completing the survey.
Numberof
Minnesota
based firms
receivingangel
investments
Totalvalueofinvestments
($)in
Minnesota based
firms
Numberof
firms based
outside Minnesota
receivingangelinvestments
Totalvalueofinvestments
($)in
firms based outside
Minnesota
Numberof
firms based
outside Minnesota
that
receivednon
Minnesotatax
credits
Totalvalueofinvestments
($)in
firms based outside
Minnesota
thatreceived
non
Minnesotataxcredits
Increased
Same/NoChange
NoOpinion
IntheTwinCitiesMetro
area
gfedc gfedc gfedc
OutsidetheTwinCities
Metroarea
gfedc gfedc gfedc
Amongwomen
owned
businesses
gfedc gfedc gfedc
Amongminority
owned
businesses
gfedc gfedc gfedc
Newinnovations,
technologiesorindustries
gfedc gfedc gfedc
5
5
6
6
Pleasespecifynewinnovations,technologies,industriesoranyotherawarenessareas
Page 1
Business SurveyBusiness SurveyBusiness SurveyBusiness Survey
TheMinnesotaLegislaturehasmandatedanevaluationoftheeconomicandfiscalimpactsoftheMinnesotaAngelInvestmentTaxCredit
Program(
“
AngelTaxCredit
”
).TheEconomicDevelopmentResearchGroup(EDRG)washiredtoconductthisevaluation,andissurveyingqualified
smallbusinessesthatreceivedangelinvestmentsunderthisprogramtohelpassesstheprogram
’
simpact.
AllinformationthatbusinessesprovidewillbeviewedonlybyEDRG.Wewillnotdiscloseorreleaseanydatayouprovide,andonlyaggregatedor
summarizedresultsoverallrespondingbusinesseswillbereportedpublicly.
Tennessen Warning
:PursuanttoMinnesotaStatutes,Section13.04,subd.2,thisnoticeexplainswhywearerequestingprivatedataaboutyou,
howwewilluseit,andyourobligationtoprovidethedata.ThisdataisbeingrequestedtoevaluatetheMinnesotaAngelInvestmentTaxCredit.
Thedatayouprovidewillbeaggregatedwithotherresponseswereceiveandusedinsummaryforminanassessmentoftheeconomicimpactof
theprogram.Thissurveyisvoluntaryandyouarenotrequiredtoprovidetherequestedinformation,butyourresponsewillassistinourevaluation
ofthetaxcredit.Wemaynotdiscloseorreleaseanydatayouprovidetousexceptasrequiredbylaw.
Inthissurvey,
Angel Investment
isdefinedasacashinvestmentinafirmmadeinexchangeforcommonstock,apartnershipormembership
interest,preferredstock,debtwithmandatoryconversiontoequity,oranequivalentownershipinterestapprovedbytheMinnesotaCommissionerof
EmploymentandEconomicDevelopment.
Page 2
Business SurveyBusiness SurveyBusiness SurveyBusiness Survey
General Information about Your Firm
1. Firm Name
2. Firm NAICS Industry Code
3. Please provide the following data for your firm for
2009
(Enter zero where appropriate).
4. Please provide the following data for your firm for
2012
(Enter zero where appropriate).
5. Year Firm Established
Ifestablishedin2010orlater,skiptonextpage
3
digitNAICS(lookupon
lastpageinpaperversion)
6
TotalSales
TotalPayroll
TotalMinnesotaPayroll
Totalfulltimeequivalent
(FTE)employees(1FTE=
2080hr/yr)
TotalFTEemployeesin
Minnesota
Percent(%)ofsalesshipped
outofMinnesota
TotalSales
TotalPayroll
TotalMinnesotaPayroll
Totalfulltimeequivalent
(FTE)employees(1FTE=
2080hr/yr)
TotalFTEemployeesin
Minnesota
Percent(%)ofsalesshipped
outofMinnesota
Other(pleasespecify)
Page 3
Business SurveyBusiness SurveyBusiness SurveyBusiness Survey
6. If established in 2009 or earlier, please indicate how much DEBT capital ($) your firm
raised prior to 2010 from the following sources.
7. If established in 2009 or earlier, please indicate how much EQUITY capital ($) your firm
raised prior to 2010 from the following sources.
Principalowner/founder
Individualangelinvestors
Angelinvestmentfunds
Commercialorotherbanks
Financecompanies
Other(pleasespecify)
Total
Principalowner/founder
Individualangelinvestors
Angelinvestmentfunds
Commercialorotherbanks
Financecompanies
Other(pleasespecify)
Total
Page 4
Business SurveyBusiness SurveyBusiness SurveyBusiness Survey
Investments Qualifying for the Angel Tax Credit
ThissectionofthesurveywilladdressonlythoseangelinvestmentsthatqualifiedfortheMinnesotaAngelTaxCredit
8. For
2010
, please indicate the investment your firm received that qualified for the Angel
Tax Credit and the total amount of other equity and debt investment funds, if any, that
were
contingent on receipt of
the Angel Tax Credit investment that year (i.e., would not
have been obtained without receipt of this tax credit).
9. For
2011
, please indicate the investment your firm received that qualified for the Angel
Tax Credit and the total amount of other equity and debt investment funds, if any, that
were
contingent on receipt of
the Angel Tax Credit investment that year (i.e., would not
have been obtained without receipt of this tax credit).
10. For
2012
, please indicate the investment your firm received that qualified for the Angel
Tax Credit and the total amount of other equity and debt investment funds, if any, that
were
contingent on receipt of
the Angel Tax Credit investment that year (i.e., would not
have been obtained without receipt of this tax credit).
QualifiedAngelTaxCredit
Investment($)
Debtcapital($)
Non
TaxCreditequity
capital($)
QualifiedAngelTaxCredit
Investment($)
Debtcapital($)
Non
TaxCreditequity
capital($)
QualifiedAngelTaxCredit
Investment($)
Debtcapital($)
Non
TaxCreditequity
capital($)
Page 5
Business SurveyBusiness SurveyBusiness SurveyBusiness Survey
11. How did your firm identify the angel investor(s) who made Angel Tax Credit
investments in your company?
Checkallthatapply.
12. As a direct result of the financing received from the Angel Tax Credit Program, has
your firm increased its level of employment?
13. If YES, what is your estimate of the resulting increase in full time equivalent (FTE) jobs?
Theangelinvestorwasafirmprincipal,founderorexecutive
gfedc
Theangelinvestor(s)foundandcontactedusdirectly
gfedc
Throughfriendsorfamilymembers
gfedc
Throughotherangelinvestorsinmyfirm
gfedc
FromtheQualifiedInvestorlistcompiledbytheDepartmentofEmploymentandEconomicDevelopment(DEED)
gfedc
Fromanaccountantorattorney
gfedc
Throughabusinessassociationornetwork
gfedc
Fromaneconomicdevelopmentorganization
gfedc
Fromaprofessionalcolleagueorrelationship
gfedc
Throughapresentationourfirmmadeinapublicventureforumorotherevent
gfedc
Other(pleasespecify)
Yes
nmlkj
No
nmlkj
Page 6
Business SurveyBusiness SurveyBusiness SurveyBusiness Survey
Investments Not Qualifying for the Angel Tax Credit
Thissectionofthesurveywilladdressinvestmentsthat
did not qualify
fortheAngelTaxCredit
14. Did your firm receive other investments not listed in Questions 8
10 that
were not
contingent on
the Angel Tax Credit during 2010 through 2012?
15. If YES, please complete the tables below. If NO, skip to next page.
16. Please indicate the percentage (%) of this DEBT capital raised from each source in the
following table.
2010Debtcapital($)
2010Equitycapital($)
2011Debtcapital($)
2011Equitycapital($)
2012Debtcapital($)
2012Equitycapital($)
Principalowner/founder
Otherfoundersand/or
executives
Individualangelinvestors
Angelinvestmentfunds
Venturecapitalfunds
Otherindividuals
Commercialorotherbanks
Financialcompanies
Governmentornon
profit
programs
Other(pleasespecify)
Total
Yes
nmlkj
No
nmlkj
Page 7
Business SurveyBusiness SurveyBusiness SurveyBusiness Survey
17. Please indicate the percentage (%) of this EQUITY capital raised from each source in
the following table.
Principalowner/founder
Otherfoundersand/or
executives
Individualangelinvestors
Angelinvestmentfunds
Venturecapitalfunds
Otherindividuals
Commercialorotherbanks
Financialcompanies
Governmentornon
profit
programs
Other(pleasespecify)
Total
Page 8
Business SurveyBusiness SurveyBusiness SurveyBusiness Survey
Use of Capital Raised 2010 to 2012
18. Please estimate the allocation (%) of the investment capital raised by your firm from
all
sources
between 2010 and 2012 across the following uses.
Totalmustaddto100.
19. For the same allocation, please estimate the portion of each of the following items
procured from
Minnesota
based vendors
(%) between 2010 and 2012.
Purchaseorexpansionof
realestate
Purchaseofequipment
Leaseholdimprovements
Employeesalaries
Contractservices
Otheroperatingcosts
Refinancingexistingdebtor
equity
Other(pleasespecify)
Purchaseorexpansionof
realestate
Purchaseofequipment
Leaseholdimprovements
Contractservices
Otheroperatingcosts
Other(pleasespecify)
Page 9
Business SurveyBusiness SurveyBusiness SurveyBusiness Survey
Estimated Impacts if the Angel Tax Credit Had Not Been Available
20. If the Angel Tax Credit Program had
not
been available, would your firm have reduced
its employment between 2010 and 2012?
21. If YES, how many full time equivalent (FTE) jobs do you estimate would have been cut?
22. What would have been the most likely outcome for your firm in raising capital from
2010 through 2012 if the Angel Tax Credit had
not
been available?
23. If your firm would have raised
less
capital without the Angel Tax Credit between 2010
and 2012, approximately how much less would it have raised?
24.
If the Angel Tax Credit had
not
been available, the sources of capital raised from 2010
through 2012 by your firm would have been the
25. How would the sources of capital raised from 2010 through 2012 have been different?
Same
Less(favorable)
More(favorable)
Don'tknow
Valueoftotalcapitalraised
nmlkj nmlkj nmlkj nmlkj
Valueofequityraised
nmlkj nmlkj nmlkj nmlkj
Valueofdebtraised
nmlkj nmlkj nmlkj nmlkj
Termsofcapital
nmlkj nmlkj nmlkj nmlkj
Yes
nmlkj
No
nmlkj
Same
nmlkj
Different
nmlkj
Don'tknow
nmlkj
Page 10
Business SurveyBusiness SurveyBusiness SurveyBusiness Survey
26. Which statement best describes the likely sales growth of your firm since 2010 had the
Angel Tax Credit
not
been available?
27. What is your best estimate of your firm
’
s sales REVENUE ($) in 2012 had the Angel Tax
Credit Program
not
been available?
28. What is your best estimate of your firm
’
s EMPLOYMENT (FTE) in 2012 had the Angel
Tax Credit Program
not
been available?
29. Please describe any other outcomes, impacts or business milestones that have
resulted from your participation in the Angel Investment Tax Credit Program.
Thank you for completing the survey.
5
5
6
6
Sameasactualrate
nmlkj
Growthbutlowerthanactualrate
nmlkj
Nogrowth
nmlkj
Decreasedsales
nmlkj
Thefirmwouldhavegoneoutofbusiness
nmlkj
Thefirmwouldnothavebeenstarted
nmlkj
List of NAICS Codes
111 Crop Production
112 Animal Production and Aquaculture
113 Forestry and Logging
114 Fishing, Hunting and Trapping
115 Support Activities for Agriculture and Forestry
211 Oil and Gas Extraction
212 Mining (except Oil and Gas)
213 Support Activities for Mining
221 Utilities
236 Construction of Buildings
237 Heavy and Civil Engineering Construction
238 Specialty Trade Contractors
311 Food Manufacturing
312 Beverage and Tobacco Product Manufacturing
313 Textile Mills
314 Textile Product Mills
315 Apparel Manufacturing
316 Leather and Allied Product Manufacturing
321 Wood Product Manufacturing
322 Paper Manufacturing
323 Printing and Related Support Activities
324 Petroleum and Coal Products Manufacturing
325 Chemical Manufacturing
326 Plastics and Rubber Products Manufacturing
327 Nonmetallic Mineral Product Manufacturing
331 Primary Metal Manufacturing
332 Fabricated Metal Product Manufacturing
333 Machinery Manufacturing
334 Computer and Electronic Product Manufacturing
335 Electrical Equipment, Appliance, and Component
Manufacturing
336 Transportation Equipment Manufacturing
337 Furniture and Related Product Manufacturing
339 Miscellaneous Manufacturing
423 Merchant Wholesalers, Durable Goods
424 Merchant Wholesalers, Nondurable Goods
425 Wholesale Electronic Markets and Agents and Brokers
441 Motor Vehicle and Parts Dealers
442 Furniture and Home Furnishings Stores
443 Electronics and Appliance Stores
444 Building Material and Garden Equipment and
Supplies Dealers
445 Food and Beverage Stores
446 Health and Personal Care Stores
447 Gasoline Stations
448 Clothing and Clothing Accessories Stores
451 Sporting Goods, Hobby, Musical Instrument, and
Book Stores
452 General Merchandise Stores
453 Miscellaneous Store Retailers
454 Nonstore Retailers
481 Air Transportation
482 Rail Transportation
483 Water Transportation
484 Truck Transportation
485 Transit and Ground Passenger Transportation
486 Pipeline Transportation
487 Scenic and Sightseeing Transportation
488 Support Activities for Transportation
491 Postal Service
492 Couriers and Messengers
493 Warehousing and Storage
511 Publishing Industries (except Internet)
512 Motion Picture and Sound Recording Industries
515 Broadcasting (except Internet)
517 Telecommunications
518 Data Processing, Hosting, and Related Services
519 Other Information Services
521 Monetary Authorities-Central Bank
522 Credit Intermediation and Related Activities
523 Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
524 Insurance Carriers and Related Activities
525 Funds, Trusts, and Other Financial Vehicles
531 Real Estate
532 Rental and Leasing Services
533 Lessors of Nonfinancial Intangible Assets (except
Copyrighted Works)
541 Professional, Scientific, and Technical Services
551 Management of Companies and Enterprises
561 Administrative and Support Services
562 Waste Management and Remediation Services
611 Educational Services
621 Ambulatory Health Care Services
622 Hospitals
623 Nursing and Residential Care Facilities
624 Social Assistance
711 Performing Arts, Spectator Sports, and Related
Industries
712 Museums, Historical Sites, and Similar Institutions
713 Amusement, Gambling, and Recreation Industries
721 Accommodation
722 Food Services and Drinking Places
811 Repair and Maintenance
812 Personal and Laundry Services
813 Religious, Grantmaking, Civic, Professional, and
Similar Organizations
814 Private Households
921 Executive, Legislative, and Other General
Government Support
922 Justice, Public Order, and Safety Activities
923 Administration of Human Resource Programs
924 Administration of Environmental Quality Programs
925 Administration of Housing Programs, Urban Planning,
and Community Development
926 Administration of Economic Programs
927 Space Research and Technology
928 National Security and International Affairs
Page 1
Non-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business Survey
TheMinnesotaLegislaturehasmandatedanevaluationoftheeconomicandfiscalimpactsoftheMinnesotaAngelInvestmentTaxCredit
Program(
“
AngelTaxCredit
”
).TheEconomicDevelopmentResearchGroup(EDRG)washiredtoconductthisevaluation,andissurveyingqualified
smallbusinessesthatdidnotreceiveangelinvestmentsunderthisprogramtohelpassesstheprogram
’
simpact.
AllinformationthatbusinessesprovidewillbeviewedonlybyEDRG.Wewillnotdiscloseorreleaseanydatayouprovide,andonlyaggregatedor
summarizedresultsoverallrespondingbusinesseswillbereportedpublicly.
Tennessen Warning
:PursuanttoMinnesotaStatutes,Section13.04,subd.2,thisnoticeexplainswhywearerequestingprivatedataaboutyou,
howwewilluseit,andyourobligationtoprovidethedata.ThisdataisbeingrequestedtoevaluatetheMinnesotaAngelInvestmentTaxCredit.
Thedatayouprovidewillbeaggregatedwithotherresponseswereceiveandusedinsummaryforminanassessmentoftheeconomicimpactof
theprogram.Thissurveyisvoluntaryandyouarenotrequiredtoprovidetherequestedinformation,butyourresponsewillassistinourevaluation
ofthetaxcredit.Wemaynotdiscloseorreleaseanydatayouprovidetousexceptasrequiredbylaw.
Inthissurvey,
Angel Investment
isdefinedasacashinvestmentinafirmmadeinexchangeforcommonstock,apartnershipormembership
interest,preferredstock,debtwithmandatoryconversiontoequity,oranequivalentownershipinterestapprovedbytheMinnesotaCommissionerof
EmploymentandEconomicDevelopment.
Page 2
Non-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business Survey
General Information about Your Firm
1. Firm Name
2. Firm NAICS Industry Code
3. Please provide the following data for your firm for
2009
(Enter zero where appropriate).
4. Please provide the following data for your firm for
2012
(Enter zero where appropriate).
5. Year Firm Established
Ifestablishedin2010orlater,skiptonextpage
3
digitNAICS(lookupon
lastpageinpaperversion)
6
TotalSales
TotalPayroll
TotalMinnesotaPayroll
Totalfulltimeequivalent
(FTE)employees(1FTE=
2080hr/yr)
TotalFTEemployeesin
Minnesota
Percent(%)ofsalesshipped
outofMinnesota
TotalSales
TotalPayroll
TotalMinnesotaPayroll
Totalfulltimeequivalent
(FTE)employees(1FTE=
2080hr/yr)
TotalFTEemployeesin
Minnesota
Percent(%)ofsalesshipped
outofMinnesota
Other(pleasespecify)
Page 3
Non-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business Survey
6. If established in 2009 or earlier, please indicate how much DEBT capital ($) your firm
raised prior to 2010 from the following sources.
7. If established in 2009 or earlier, please indicate how much EQUITY capital ($) your firm
raised prior to 2010 from the following sources.
Principalowner/founder
Individualangelinvestors
Angelinvestmentfunds
Commercialorotherbanks
Financecompanies
Other(pleasespecify)
Total
Principalowner/founder
Individualangelinvestors
Angelinvestmentfunds
Commercialorotherbanks
Financecompanies
Other(pleasespecify)
Total
Page 4
Non-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business Survey
Investment Capital Raised After 2009
Thissectionofthesurveywilladdressangelinvestmentsandothercapitalraisedafter2009.
8. Did your firm raise any new debt or equity capital during 2010 through 2012?
9. If YES, please complete the tables below. If NO, skip to Question 15 on next page.
10. Please indicate the percentage (%) of this DEBT capital raised from each source in the
following table.
2010Debtcapital($)
2010Equitycapital($)
2011Debtcapital($)
2011Equitycapital($)
2012Debtcapital($)
2012Equitycapital($)
Principalowner/founder
Otherfoundersand/or
executives
Individualangelinvestors
Angelinvestmentfunds
Venturecapitalfunds
Otherindividuals
Commercialorotherbanks
Financialcompanies
Governmentornon
profit
programs
Other(pleasespecify)
Total
Yes
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No
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Page 5
Non-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business Survey
11. Please indicate the percentage (%) of this EQUITY capital raised from each source in
the following table.
Principalowner/founder
Otherfoundersand/or
executives
Individualangelinvestors
Angelinvestmentfunds
Venturecapitalfunds
Otherindividuals
Commercialorotherbanks
Financialcompanies
Governmentornon
profit
programs
Other(pleasespecify)
Total
Page 6
Non-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business Survey
Use of Capital Raised 2010 to 2012
12. Please estimate the allocation (%) of the investment capital raised by your firm from
all
sources
between 2010 and 2012 across the following uses.
Totalmustaddto100.
13. For the same allocation, please estimate the portion of each of the following items
procured from
Minnesota
based vendors
(%) between 2010 and 2012.
Purchaseorexpansionof
realestate
Purchaseofequipment
Leaseholdimprovements
Employeesalaries
Contractservices
Otheroperatingcosts
Refinancingexistingdebtor
equity
Other(pleasespecify)
Purchaseorexpansionof
realestate
Purchaseofequipment
Leaseholdimprovements
Contractservices
Otheroperatingcosts
Other(pleasespecify)
Page 7
Non-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business Survey
14. If your firm raised capital from angel investors during 2010 through 2012, how did it
identify these angel investor(s)?
Checkallthatapply.
15. Was your firm engaged in discussions or negotiations with an angel investor or an
angel investment fund during 2010 through 2012 that did not lead to an angel investment?
16. If YES, what was the primary reason the angel investment did not occur?
Checkonly
one.
Theangelinvestorwasafirmprincipal,founderorexecutive
gfedc
Theangelinvestor(s)foundandcontactedusdirectly
gfedc
Throughfriendsorfamilymembers
gfedc
Throughotherangelinvestorsinmyfirm
gfedc
FromtheQualifiedInvestorlistcompiledbytheDepartmentofEmploymentandEconomicDevelopment(DEED)
gfedc
Fromanaccountantorattorney
gfedc
Throughabusinessassociationornetwork
gfedc
Fromaneconomicdevelopmentorganization
gfedc
Fromaprofessionalcolleagueorrelationship
gfedc
Throughapresentationourfirmmadeinapublicventureforumorotherevent
gfedc
Other(pleasespecify)
Yes
nmlkj
No
nmlkj
Theinvestmenttermsofferedwerenotacceptable.
nmlkj
Ourproduct,serviceortechnologywasnotfeasibleorcompetitivetotheangelinvestororfund.
nmlkj
Themarketforourproductorservicewastoosmallfortheangelinvestororfund.
nmlkj
Theangelinvestororfunddecidedthatthefirmlackedtherequiredmanagementtobesuccessful.
nmlkj
Thefirmwasnotabletomakeorraiserequiredco
investmentsneededtocompletetheangelinvestmentthatwasoffered.
nmlkj
Thefirmwasnotabletomeetbenchmarksotherthanco
investmentneededtocompletetheangelinvestmentthatwasoffered.
nmlkj
Other(pleaseexplain)
Page 8
Non-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business SurveyNon-Recipient Business Survey
17. Please describe any other outcomes, impacts or business milestones that have
resulted from your being a Qualified Small Business in the Angel Investment Tax Credit
Program.
Thank you for completing the survey.
5
5
6
6
List of NAICS Codes
111 Crop Production
112 Animal Production and Aquaculture
113 Forestry and Logging
114 Fishing, Hunting and Trapping
115 Support Activities for Agriculture and Forestry
211 Oil and Gas Extraction
212 Mining (except Oil and Gas)
213 Support Activities for Mining
221 Utilities
236 Construction of Buildings
237 Heavy and Civil Engineering Construction
238 Specialty Trade Contractors
311 Food Manufacturing
312 Beverage and Tobacco Product Manufacturing
313 Textile Mills
314 Textile Product Mills
315 Apparel Manufacturing
316 Leather and Allied Product Manufacturing
321 Wood Product Manufacturing
322 Paper Manufacturing
323 Printing and Related Support Activities
324 Petroleum and Coal Products Manufacturing
325 Chemical Manufacturing
326 Plastics and Rubber Products Manufacturing
327 Nonmetallic Mineral Product Manufacturing
331 Primary Metal Manufacturing
332 Fabricated Metal Product Manufacturing
333 Machinery Manufacturing
334 Computer and Electronic Product Manufacturing
335 Electrical Equipment, Appliance, and Component
Manufacturing
336 Transportation Equipment Manufacturing
337 Furniture and Related Product Manufacturing
339 Miscellaneous Manufacturing
423 Merchant Wholesalers, Durable Goods
424 Merchant Wholesalers, Nondurable Goods
425 Wholesale Electronic Markets and Agents and Brokers
441 Motor Vehicle and Parts Dealers
442 Furniture and Home Furnishings Stores
443 Electronics and Appliance Stores
444 Building Material and Garden Equipment and
Supplies Dealers
445 Food and Beverage Stores
446 Health and Personal Care Stores
447 Gasoline Stations
448 Clothing and Clothing Accessories Stores
451 Sporting Goods, Hobby, Musical Instrument, and
Book Stores
452 General Merchandise Stores
453 Miscellaneous Store Retailers
454 Nonstore Retailers
481 Air Transportation
482 Rail Transportation
483 Water Transportation
484 Truck Transportation
485 Transit and Ground Passenger Transportation
486 Pipeline Transportation
487 Scenic and Sightseeing Transportation
488 Support Activities for Transportation
491 Postal Service
492 Couriers and Messengers
493 Warehousing and Storage
511 Publishing Industries (except Internet)
512 Motion Picture and Sound Recording Industries
515 Broadcasting (except Internet)
517 Telecommunications
518 Data Processing, Hosting, and Related Services
519 Other Information Services
521 Monetary Authorities-Central Bank
522 Credit Intermediation and Related Activities
523 Securities, Commodity Contracts, and Other Financial
Investments and Related Activities
524 Insurance Carriers and Related Activities
525 Funds, Trusts, and Other Financial Vehicles
531 Real Estate
532 Rental and Leasing Services
533 Lessors of Nonfinancial Intangible Assets (except
Copyrighted Works)
541 Professional, Scientific, and Technical Services
551 Management of Companies and Enterprises
561 Administrative and Support Services
562 Waste Management and Remediation Services
611 Educational Services
621 Ambulatory Health Care Services
622 Hospitals
623 Nursing and Residential Care Facilities
624 Social Assistance
711 Performing Arts, Spectator Sports, and Related
Industries
712 Museums, Historical Sites, and Similar Institutions
713 Amusement, Gambling, and Recreation Industries
721 Accommodation
722 Food Services and Drinking Places
811 Repair and Maintenance
812 Personal and Laundry Services
813 Religious, Grantmaking, Civic, Professional, and
Similar Organizations
814 Private Households
921 Executive, Legislative, and Other General
Government Support
922 Justice, Public Order, and Safety Activities
923 Administration of Human Resource Programs
924 Administration of Environmental Quality Programs
925 Administration of Housing Programs, Urban Planning,
and Community Development
926 Administration of Economic Programs
927 Space Research and Technology
928 National Security and International Affairs
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Evaluation of the Minnesota (Minnesota Department of Revenue)

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