NEW JERSEY — Entrepreneurs in New Jersey may be eligible for government assistance as a result of the official establishment of the Innovation Evergreen Fund, which was approved earlier this month.
The plan to establish a new state fund to invest in promising New Jersey-based startups, first announced in 2018 as part of Gov. Phil Murphy’s economic development strategic plan, has taken a significant step forward.
The New Jersey Innovation Evergreen Fund was established to help increase the state’s access to resources and venture capital. It also aims to foster collaborations between well-resourced corporations and national investors in order to financially support aspiring entrepreneurs.
According to the New Jersey Economic Development Authority, the state will invest $600 million in startups — and not just any startups, but companies that have been vetted by venture capital groups — to help ensure that more companies start and stay in New Jersey.
“The New Jersey Innovation Evergreen Fund is a groundbreaking public-private partnership that will fuel our innovation economy by attracting entrepreneurs and venture capital to the state,” Murphy said in a statement.
The seed capital for the fund will be raised by auctioning up to $300 million in transferable tax credits to corporations registered to do business in New Jersey. Following that, the state intends to collaborate with venture capital firms, which will also be expected to contribute matching funds, bringing the total potential investment to $600 million.
“When entrepreneurs think of leaders in innovation, New Jersey should be at the top of their list,” said NJEDA Chief Executive Officer Tim Sullivan. “The NJIEF will not only serve as a novel approach to investing in entrepreneurs but also a key contributor for job creation and sustainable economic growth.”
The fund’s targeted industries, according to Tim Sullivan, executive director of the EDA, include advanced transportation and logistics, advanced manufacturing, aviation,…
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