DataMotion Founder Calls New Jersey’s Technology Business Tax Certificate Transfer Program One of the Best in Nation
Under the direction of its founder Mahesh Muchhala (pictured above), DataMotion was one of 41 businesses approved in 2015 to share a total of $47.4 million through the State's NOL Program.
TRENTON, N.J. (June 23, 2016) – Ensuring that its customers can send emails and other electronic data securely has always been at the core of DataMotion’s mission, and since 2012, the information technology (IT) startup has turned to the State’s Technology Business Tax Certificate Transfer (NOL) Program as a way to raise additional capital to fund its operations.
Florham Park-based DataMotion offers data delivery encryption solutions, including email encryption, for a wide variety of industries, from government to small businesses. The company currently employs 38 people nationwide, including 25 in New Jersey. In 2014, DataMotion launched DataMotion Health, an encryption platform for the healthcare industry. DataMotion Health was created to help providers communicate more efficiently across the care continuum and with their patients. Earlier this month, the company announced the DataMotion Direct Provisioning Portal, a new resource aimed at extending direct secure messaging to patients nationwide.
DataMotion Founder Mahesh Muchhala noted that his company’s clients include the Hackensack University Medical Center, Rite Aid Pharmacy, and Sun Life Financials.
DataMotion was one of 41 businesses approved in 2015 to share a total of $47.4 million through the NOL Program. Administered by the New Jersey Economic Development Authority (EDA) and the New Jersey Department of Treasury's Division of Taxation, the NOL Program allows eligible technology and biotechnology companies to sell unused New Jersey net operating losses and research and development (R&D) tax credits to unrelated profitable corporations. The NOL Program offers non-dilutive funding, meaning that entrepreneurs do not have to relinquish a portion of their company in return for funding.
As a serial entrepreneur with more than 40 years of experience, Muchhala is an active participant in New Jersey’s technology scene and an avid supporter of up-and-coming entrepreneurs. He is an investor with JumpStart New Jersey Angel Investor Network (Jumpstart) and has also been a member of the New Jersey Technology Council since it was founded in 1996. He previously served as a board member of the New Jersey chapter of the Association for Corporate Growth (ACG).
“We applaud Mahesh and all of the entrepreneurs in New Jersey that continue to have a vested interest in the success of the Garden State’s startup community,” EDA Chief Executive Officer Melissa Orsen said. “New Jersey’s collaborative environment is just one more example of how New Jersey is leading the way in innovation.”
New Jersey startup companies like DataMotion have until 11:59 p.m. on June 30 to apply to sell their net operating losses and unused R&D tax credits for cash through this year’s NOL Program. A complete list of NOL Program requirements and program details can be found at https://www.njeda.com/nol.
@NJEDATech asked Muchhala about his company’s experience in New Jersey and its plans for the future:
You’re very involved with New Jersey’s technology scene. What advice do you have for entrepreneurs just starting out in the Garden State?
Entrepreneurs have put New Jersey on the national map for startups. Associations such as the New Jersey Technology Council, the New Jersey Innovation Institute (NJII), and Jumpstart provide excellent access to experienced professionals eager to help – most of who have succeeded with their own ventures. This network of talent helps in acquiring resources and leads to funding sources in a state which has been side-stepped by the venture capital community. The New Jersey Institute of Technology, Rutgers University, Fairleigh Dickinson University, and other educational institutions provide excellent fresh and new talent. I encourage entrepreneurs to continue to network despite the heavy burden of being a startup entrepreneur. And remember that the EDA has a friendly team willing and eager to help!
Why did you choose to grow DataMotion in New Jersey?
When I migrated from India in 1987, I landed here in New Jersey and launched my first IT venture. Over the years, I’ve witnessed tremendous growth in the Garden State’s startup culture and remained rooted here, despite repeated overtures from Silicon Valley. The proximity to New York City has been a great benefit, as have organizations such as NJ Tech Council that provided networking opportunities. NJII, Jumpstart, New Jersey’s chapter of ACG, and the EDA have also provided ample opportunities for growth.
How did DataMotion benefit from funding it received through the NOL Program?
New Jersey’s NOL Program is one of the best programs in the nation. 2012 was the first year DataMotion took advantage of the program and the cash we received was extremely useful. Since then, support from the program has helped us tremendously in our diversification into data security for healthcare IT.
What’s on the horizon for DataMotion?
Our client base continues to grow at a rapid rate. We’re also landing excellent strategic partnerships, both in data security and healthcare IT. The epicenter of this growth is our innovative technology, seamlessly implementing the highest level of security for privacy compliance and without requiring user involvement. We are slated for high double-digit annual growth over the next few years.
For more information about resources available to support New Jersey’s technology industry, visit https://www.njeda.com/tls and follow @NJEDATech on Twitter and LinkedIn.