NJEDA Approves Investment Firms to Manage Funds to Support Small & Early-Stage Businesses
Funded through the State Small Business Credit Initiative, funds will support investments into New Jersey companies
TRENTON, N.J. (May 12, 2023) – The New Jersey Economic Development Authority (NJEDA) named several firms to manage and deploy capital for three unique investment strategies funded through the federal State Small Business Credit Initiative (SSBCI). These three funds are NJEDA’s Blended Capital Fund, Life Science/Health Care Fund, and Socially & Economically Disadvantaged Individuals (SEDI) Seed Fund. In February, the NJEDA issued Notices of Investment Opportunities (NIOs) seeking investment managers for each fund.
“Since the pandemic, my Administration has been working to ensure small business owners have the capital to grow their businesses and achieve success,” said Governor Phil Murphy. “The federal funding awarded to New Jersey will help support small and early-stage businesses across the state and propel our economy forward.”
“Together, these three funds will help position New Jersey businesses for long-term growth and success,” said NJEDA Chief Executive Officer Tim Sullivan. “Governor Murphy’s economic development strategy has been centered on connecting entrepreneurs and small business owners with the capital they need to succeed in an equitable and inclusive manner. I’m thankful to Senators Menendez and Booker for securing this federal funding which will have a lasting impact on small businesses across New Jersey.”
The fund managers will be responsible for raising, or contribute to the raising of, private capital, managing the fund’s day-to-day operations, and developing and maintaining a pipeline of prospective, New Jersey-based small businesses that can benefit from the fund.
In December, the U.S. Department of Treasury approved New Jersey’s SSBCI application and awarded the NJEDA $255 million to create programs that will provide financial and technical assistance to small and micro businesses, and early-stage, innovation-focused companies located across the state. SSBCI is a federal program designed to catalyze lending and investment of private capital into small businesses, particularly those that would not otherwise have access to funding.
“These three funds will provide small and early-stage businesses in New Jersey with the financial resources and support they need to fulfill their potential and realize their dreams while boosting the state’s economy,” said U.S. Senator Bob Menendez (D-N.J.). “They will also ensure greater access to credit and capital for businesses across the state of New Jersey, including those located in underserved areas and led by diverse individuals, which I have long championed in the Senate. I am proud to have delivered this funding to New Jersey to keep moving our state forward as an innovator and job creator.”
“These funds will spark growth and empower the ingenuity of New Jersey’s small businesses, which are the backbone of our economy and our communities,” said U.S. Senator Cory Booker (D-N.J.). “Senator Menendez and I work every day to bring resources home to New Jersey, and I’m excited to see NJEDA disburse these federal dollars in a way that helps our small businesses thrive.”
The NJEDA announced investment managers for the following three funds:
- Blended Capital Fund:
Funded at $50 million, the Blended Capital Fund will co-invest SSBCI funds in an investment vehicle that supports the purchase of eligible loans from Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) serving New Jersey, allowing them to do more lending. The fund will be managed by Calvert Impact. Calvert Impact will leverage and utilize the investment by NJEDA in the Blended Capital Fund to create and administer a NJ Loan Participation program to support New Jersey-based small businesses with working capital loans.
- Life Science/Health Care Fund:
A portion of the $60 million Life Science/Health Care Fund will be managed by three firms and support early-stage New Jersey life science and health care businesses, including companies in biotechnology, pharmaceuticals, and medical devices.
$12.5 million will be managed by New York City-based Signet Healthcare Management LLC, which was founded in 1998. $7.5 million will be managed by Tech Council Ventures LLC, which is based in Summit. Lastly, Syridex Bio LLC, headquartered in Princeton, will manage up to $5 million of the fund.
- SEDI Seed Fund:
The $20 million SEDI Fund will be managed by Include Venture Partners, LLC and Gener8tor Management, LLC. The firms will support seed and early-stage startups substantially located in New Jersey with SEDI owners. For purposes of the fund, the basis for eligibility can be geographic, demographic, or socioeconomic.
Include Venture Partners will manage up to $15 million. The firm is focused on investing in diverse-led undervalued, outperforming funds and founders, with a focus on ESG and Sustainability. Gener8tor Management, LLC will manage up to $5 million of the fund. Since Gener8tor’s inception in 2012, the firm has expanded its startup and small business venture funds and accelerators across 41 cities, 20 states and two countries. Due to the firm’s substantial international resources, it is able to identify target opportunities, provide meaningful support to its portfolio companies, and administer their funds with a high degree of acumen.
“The investment managers we selected will be able to leverage their expertise and multiply the impact our dollars will have on businesses across the state,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “Under Governor Murphy’s leadership, New Jersey’s economy has been fueled by making strategic investments in our early-stage, innovative small businesses.”
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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