TLDR:
- Newark startup companies will receive up to $6 million in capital funding from the New Jersey Economic Development Authority.
- NJEDA’s investment will support Newark Venture Partners, III, L.P., with additional funds for New Jersey-based companies and Newark-based startups.
Startup companies in Newark are set to receive a significant boost in capital funding from the state of New Jersey, as announced by officials from the New Jersey Economic Development Authority (NJEDA). NJEDA has approved an investment of up to $6 million into Newark Venture Partners, III, L.P. (NVP III) under its Venture Fund Investment Program. NVP III, the third fund for Newark Venture Partners (NVP), a Newark-based early-stage venture capital firm, will work to match every dollar of NJEDA’s commitment with an additional $2 for New Jersey-based companies. Moreover, up to $1 million of NJEDA’s commitment will be exclusively invested in Newark-based startups.
NVP leverages its corporate limited partner relationships with top companies such as Audible, Prudential, Bank of America, and Horizon Blue Cross Blue Shield to source investments, evaluate opportunities, and add value to portfolio companies. NJEDA prioritizes supporting venture capital funds that invest in early-stage companies, particularly those with less than $3 million in revenue and emerging technology companies. The authority has approved investments in 22 venture capital funds with total commitments exceeding $77 million as of July. In addition to this, the NJEDA has previously committed approximately $5.3 million to NVP’s initial two funds.
Notably, past venture capital partners have invested approximately four times NJEDA’s investment into over 100 New Jersey early-stage technology and life science companies, with total funding reaching $3 billion. These active portfolio companies have employed over 1,000 full-time employees. NJEDA’s CEO, Tim Sullivan, highlighted the importance of strategic investments in New Jersey’s innovation sector to drive ingenuity, create jobs, and strengthen the economy.
Overall, NJEDA’s Venture Fund Investment Program aims to position New Jersey as a premier destination for technology and innovation companies. The program details, evaluation criteria, and applications can be found on NJEDA’s website for interested parties.
