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NEWS

Gov. Beshear to sign angel investor bill in Covington

Amanda Van Benschoten
The Enquirer

Northern Kentucky has become the epicenter of the state's startup industry, despite obstacles such as a less favorable tax climate than neighboring Cincinnati.

That's about to change, however.

On Wednesday, Gov. Steve Beshear will visit Covington to sign a bill that will level the playing field.

The new law will let individuals who invest in startup companies claim a credit on their income taxes to offset the risk of the investment. Local business leaders believe that will speed the flow of private capital into local startups and help keep them in Northern Kentucky.

Such investors are known as "angel investors" because their dollars often decide whether a startup will live or die. It's a gamble, however, since a high percentage of startups fail even after receiving the capital. (For startups that succeed, however, the investors have a stake in a growing company.)

The ceremonial bill-signing is set for 11:15 a.m. at the Pike Street headquarters of UpTech, the business accelerator created 3½ years ago by Northern Kentucky business and community leaders and Northern Kentucky University.

UpTech provides privately raised capital to promising technology startup companies, plus mentoring that helps them grow into viable businesses. Graduates of the program need additional capital to keep growing, however – and local business leaders believe the angel investor tax credit will help provide it. ■