New Orleans’ Neighborland

I met Dan Parham and Candy Chang last summer at Launch Pad.  It is a familiar scenario for me, Dan had emailed me and asked me if he could come by and tell me about his startup, Neighborland that they were launching in New Orleans.  I was excited about the potential real world impact that Neighborland would be able to have in New Orleans.  New Orleans has incredibly engaged citizens who care about this city and care about their neighborhoods.

So, I invited Dan to speak at TribeCon, our conference about online communities creating offline change.  I could sense the audience being moved by the way Neighborland empowers people to take action on the issues that matter to them.

A few weeks ago, I decided to try it out myself.

I am passionate about the importance of Tulane bringing its CS Department back online so we are graduating talented engineers in New Orleans and building a pipeline of talent.  I posted the idea on Neighborland.  This activated a conversation around the topic that struck me with the intelligence and civility of the discourse and most importantly the desire of people to take action.  It spurred a piece in the local press as well as a meeting with Ram Mettu, a faculty member at Tulane which is spurring some exciting developments that we are hoping to announce at Launch Fest.

Today I’m thrilled to announce that Voodoo Ventures is investing in Neighborland alongside an amazing group of co-investors including The Obvious Corporation, True Ventures, Lerer Ventures, SV Angel, and Crunch Fund. My central thesis with Voodoo Ventures is to “play where web meets world” and Neighborland has the potential for tremendous real-world impact.

Last year at Launch Fest, I focused on the importance of local angels in New Orleans to get engaged in New Orleans startups because we can catalyze deals that result in investment by top-tier VC’s. This deal is evidence that strategy works.  Now we’ve all got to keep cranking.

Let’s connect on the issues that matter to us and take action on Neighborland. Together we can make our neighborhood, New Orleans, and the world a better place.

What the Louisiana Angel Tax Credit means for you

Last Friday HB 597, the Angel Investor Credit Program was signed into law by Gov. Jindal.   I fully expect this incentive to have a major impact on the flow of early-stage risk capital in Louisiana, but its important that you understand it and get an early jump in it to be best positioned to benefit. Now its time to figure out what this means for you.

Here are the bullet points:

  • A credit of 35% of the money invested by an accredited angel investor in a certified Louisiana business, credit delayed by 24 months
  • Credits capped at $1 million per year and $2 million total per business.
  • The total angel investor rebates are capped at $5 million.
  • Credit is transferable.
  • Program effective from Jan. 1, 2011, through July 1, 2015.

Beyond this, I have been getting some questions for clarification so I reached out to Erich Rapp at Kean Miller.  My questions and his responses are below.

1) The company has to be a Louisiana based company – can the investor be anywhere since it’s transferable?

It would appear that the investor could be from anywhere. I see no prohibition on out of state residents investing in Louisiana companies and I would not think that the La DED would object to having someone from another state invest in a Louisiana business.

2) Can the investor credit pass through to angel groups?

The credit can be earned by an individual or an “entity” such as the South Coast Angel Fund or Launch Pad Ignition. It could then be transferred to the owners of those angel investor groups or the benefits might be passed to those individuals automatically depending on the tax status of those entities

3) Does the 5m available prorate or is it first come first serve? What is the most opportune time to file?

The Act authorizes the La DED to determine the allocation method. They are expressly authorized to use a first come, first serve method, but it does not appear they are required to use that method. Anyone that wants the credits should probably get an application in as soon as the state will take such applications.

Have further questions? Did I miss something? Let me know in the comments.

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