Newark Startup Companies Will Get Wave Of Capital Funding: NJEDA

NEWARK, NJ — Startup companies in Newark will get a boost – and some much-needed capital funding – from the state of New Jersey, officials recently announced.

The New Jersey Economic Development Authority (NJEDA) has approved an investment that may reach up to $6 million into Newark Venture Partners, III, L.P. (NVP III) under its 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, the agency reported.

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.”

According to a news release from the NJEDA, 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. As of July, 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.

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, the agency reported.

“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,” NJEDA chief executive officer Tim Sullivan said.

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

• See Related: More ‘Angel Investors’ Needed, Newark Nonprofit Says
• See Related: Education Can’t Trump Lack Of Capital For Black Business: NJ Advocate

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