NJEDA Approves Four Additional Qualified Venture Capital Firms for the New Jersey Innovation Evergreen Fund
Approved Firms Can Leverage Up to $12.5M Annually to Invest in NJ-Based Companies
TRENTON, N.J. (July 27, 2023) – The New Jersey Economic Development Authority (NJEDA) Board yesterday approved adding four venture capital firms to the growing list of Qualified Venture Firms (QVFs) that can access funding from the New Jersey Innovation Evergreen Fund (NJIEF). These QVFs, as well as the three approved by the NJEDA Board in May, are eligible to access up to $12.5 million annually per investor from the NJIEF to co-invest in innovative, high-growth New Jersey-based businesses.
Established under the New Jersey Economic Recovery Act (ERA) of 2020, signed into law by Governor Phil Murphy in 2021, 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 are expected to result in the funding of initial investments into high-growth businesses in New Jersey.
“The NJIEF is a unique tool that will propel New Jersey’s innovation economy forward by leveraging public and private dollars to invest in high-growth startups, entrepreneurs, and our innovation ecosystem,” said NJEDA Chief Executive Officer Tim Sullivan. “Through the NJIEF, the NJEDA is supporting Governor Murphy’s strategic vision to invest in New Jersey entrepreneurs by providing access to necessary capital, which in turn, will allow companies of the future to grow and scale.”
The QVF applicants approved today are:
- Edison Partners Management, LLC d/b/a Edison Partners – based in Princeton, NJ
- Newark Venture Accelerator LLC d/b/a Newark Venture Partners – based in Newark, NJ
- Covenant Venture Capital LLC – based in New York, NY
- RV 3 Management, LLC d/b/a Rittenhouse Ventures – based in Philadelphia, PA
“The QVFs approved yesterday all have a proven track record of investing for the growth of emerging companies throughout the country,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “This is a robust roster of qualified venture firms and enhancing their capital to invest in New Jersey businesses couldn’t come at a more critical time when the capital markets have slowed making investments. We look forward to partnering with all our QVFs in the months and years ahead on strategic investments that will spur opportunities for New Jersey entrepreneurs and their businesses.”
Applications for venture firms to qualify as a QVF can be found here. Applications are open to venture capital firms worldwide and are being accepted on a rolling basis. The roster of seven firms approved to date includes diversity of investment strategy, industry, and stage. There continues to be strong momentum from interested managers and we anticipate continuing to make announcements around several mor QVFs in the coming months.
Coviello noted that the application for approved QVFs to apply for Qualified Investments into high-growth, innovative businesses based in New Jersey is also now open. The total unallocated capital available for new investments stands at over $46 million.
About the New Jersey Economic Development Authority
The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.
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