The New Jersey Economic Development Authority this week approved four more venture capital firms for access to funding from the New Jersey Innovation Evergreen Fund (NJIEF) to co-invest in innovative, high-growth New Jersey-based businesses.
The four companies, and three previously approved by the NJEDA board in May, are designated as qualified venture firms (QVFs) eligible to access up to $12.5 million from the NJIEF.
Under a law signed in 2021, the NJIEF allows the state to become an equity investor in innovative early-stage New Jersey businesses by investing up to $300 million, along with an equal share from qualified venture capital firms, for $600 million.
The four QVF applicants mostly recently approved by the NJEDA are:
- Edison Partners Management, LLC (d/b/a Edison Partners) – based in Princeton
- Newark Venture Accelerator LLC (d/b/a Newark Venture Partners) – based in Newark
- Covenant Venture Capital LLC – based in New York City
- RV 3 Management, LLC (d/b/a Rittenhouse Ventures) – based in Philadelphia
The capital raised from the sale of tax credits auctioned off to eight corporations in December 2022 is expected to fund 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.
The QVFs approved by the NJEDA 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,” Coviello said. “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 on NJEDA’s website 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. The NJEDA anticipates announcing additional 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.
