The New Jersey Economic Development Authority (NJEDA) today approved three additional venture capital firms as Qualified Venture Firms (QVFs) in the New Jersey Innovation Evergreen Fund (NJIEF). With the latest approvals, a total of 10 QVFs can each access up to $12.5 million annually per investor from the NJIEF to co-invest in innovative, high-growth New Jersey-based businesses.
The NJIEF allows the state to become an equity investor in innovative early-stage businesses based in New Jersey, investing up to $300 million in New Jersey companies alongside approved QVFs for a total of $600 million. The capital raised from the sale of tax credits auctioned off to eight corporations in December 2022 will result in the funding of initial investments into high-growth businesses in New Jersey.
“Governor Murphy has always prioritized connecting New Jersey startups with access to the funding they need to succeed,” said NJEDA Chief Executive Officer Tim Sullivan. “The NJIEF offers a unique and responsive solution for getting capital into the hands of the state’s youngest companies while also building on New Jersey’s role as a leader in innovation.”
Sullivan noted that venture capital firms throughout the world can apply to be QVFs to invest in early-stage businesses and potentially receive matching capital to further benefit the startups. The QVFs approved today have a proven track record of investing in the growth of emerging companies throughout the country.
The three QVFs approved today are:
“Venture firms nationwide are taking notice of New Jersey’s leadership in innovation and are eager to invest into our state’s high-growth startups through the NJIEF,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “We are excited to partner with the approved QVFs as we begin to make strategic investments that will benefit emerging companies as they expand and thrive in the Garden State.”
Applications for venture firms seeking to qualify as a QVF can be found here and are being accepted on a rolling basis. The ten firms approved to date represent diversity in terms of investment strategy, industry, and stage. Additionally, there continues to be strong momentum from interested managers.
Applications for approved QVFs to apply for Qualified Investments into high-growth, innovative businesses based in New Jersey are also now open. The total unallocated capital available for new investments stands at over $46 million.
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