NJEDA Board Approves Investment of up to $6M into Newark Venture Partners

Funds will support investments in early-stage technology companies

TRENTON, N.J. (July 17, 2024) – The New Jersey Economic Development Authority (NJEDA) today approved an investment into Newark Venture Partners, III, L.P. (NVP III) of up to $6 million under the NJEDA’s Venture Fund Investment Program. As a requirement of the program, NVP III will work to match every dollar of the NJEDA’s commitment to the Fund with an additional $2 into New Jersey-based companies. Additionally, up to $1 million of the NJEDA’s aggregate commitment will be invested through a fund to exclusively invest in Newark-based startups.

“Under Governor Murphy’s leadership, New Jersey has been laser-focused on connecting entrepreneurs and companies of the future with access to capital,” said NJEDA Chief Executive Officer Tim Sullivan. “Strategic investments in New Jersey’s innovation sector, like those made available under the NJEDA’s Venture Fund Investment Program, help drive ingenuity, generate good-paying jobs, and strengthen our economy, further positioning the Garden State as the premier destination for technology and innovation companies.”

NVP III is the third fund for Newark Venture Partners (NVP), a Newark-based early-stage venture capital firm. NVP leverages its corporate limited partner relationships, which include top corporate investors such as Audible (an Amazon company), Prudential, RWJBarnabas, Bank of America, and Horizon Blue Cross Blue Shield, to source potential investments, evaluate the commercial viability of opportunities, and add value to portfolio companies.

“This investment in NVP will have exponentially greater impact as it leverages the firm’s network and expertise, advancing the performance of technology businesses across the State,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “Investing in early-stage firms such as these will lead to economic transformation, job growth, and innovation for diverse New Jersey companies.”

The Authority prioritizes support for venture capital funds that invest in early-stage companies with less than $3 million in revenue, as well as supporting emerging technology companies. To date, the NJEDA has approved investments in 22 venture capital funds with cumulative commitments of more than $77 million, including an approximately $5.3 million commitment to NVP’s first two funds.

“The NJEDA has supported Newark Venture Partners from the beginning and continues to be a best-in-class partner as we evolve as a firm,” said Dan Borok, Managing Partner of NVP.  

“We value our ongoing partnership with the NJEDA and its efforts to propel New Jersey’s innovation economy forward,” said Vaughn Crowe, Managing Partner of NVP and a Newark native.

Cumulatively, past venture capital partners have invested approximately four times the NJEDA’s investment into more than 100 New Jersey early-stage technology and life science companies. Including other third-party investors, companies in the NJEDA venture fund portfolio have received $3 billion of funding. Active portfolio companies employed over 1,000 full time employees.

More information on Venture Fund Investments, including program details, evaluation criteria, and applications, can be found here.

About the NJEDA

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.

To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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