OrthoCor Medical, the Minneapolis-based maker of a knee brace that provides relief from arthritis and joint pains, said it recently closed on $1.5 million in angel investment.
OrthoCor Medical was one of more than 100 small businesses to register for Minnesota's angel investment tax credit. The credit, which was approved last April, provides a 25 percent income tax credit for registered angel investors. About half of the OrthoCor's $1.5 million investment came from angel investors who took advantage of the tax credit.
"Angel investors are still very cautious and anything that can help, including this tax credit is helpful," said John Dinusson, CEO and president.
The most recent data available indicates qualified Minnesota companies received about $24 million in investment, resulting in almost $6 million in tax credits rewarded to angel investors, according to trade association LifeScience Alley. Full year 2010 data will be released later this month, state officials said.
OrthoCor Medical sells a knee brace that provides heat and electromagnetic therapy to patients. The device is strapped around the knee and two small disposable "pods" snap into docking stations, delivering heat and activating the therapy. The product is currently available in half of the states in the nation and there are plans to expand the business in the Northeast and Northwest, Dinusson said.
