Funds raised from auction will help first-of-its-kind ‘Innovation Evergreen Fund’ invest in Garden State start-ups
August 8, 2022
The New Jersey Economic Development Authority (NJEDA) has launched the next phase in the creation of the New Jersey Innovation Evergreen Fund (NJIEF) by opening the first of five annual New Jersey Business Tax Credit auctions to fund the fund.
Under the NJIEF, the state will become an equity investor in startups, deploying up to $600 million into companies alongside professional venture capital groups.
For the 2022 auction year, a pilot amount of $30 million in tax credits will be available for purchase through the New Jersey Corporate Tax Credit Auction. Depending on demand, NJEDA may increase the amount of tax credits available for the current year. Funds raised from the auction will later be matched by professional venture capital firms and invested in high-growth start-ups across the Garden State.
“The NJIEF is a unique model for stimulating investment and other resources to boost the success rate of start-ups,” said NJEDA CEO Tim Sullivan. “Through the fund, successful New Jersey companies will help nurture and elevate the next generation of high-growth businesses. This will lead to job creation and scientific breakthroughs, and help fulfill Governor Phil Murphy’s commitment to reclaim New Jersey’s position as a world leader in innovation.
Sullivan noted that in addition to benefiting from the purchase of tax credits, companies participating in the NJIEF will help drive New Jersey’s innovation ecosystem through their strategic engagement with emerging companies in which the NJIEF will invest. later.
Companies wishing to purchase the tax credits must commit to supporting the state’s innovation economy through activities such as mentoring, internships, access to the sales pipeline and distribution and availability to serve on the NJIEF Advisory Board for one year. Completed applications, including a refundable deposit, must be received by October 7.
“New Jersey has a broad appeal for companies seeking top talent, a thriving innovation community, and a prime location, and the NJIEF will be an additional tool in attracting companies and startups that choose to start and grow. grow in our state,” said NJEDA’s Director of Economic Transformation. said Kathleen Coviello. “We look forward to seeing the growth that will result from this funding investment and the targeted sharing of intellectual capital.”
Full details on the NJIEF are available at https://www.njeda.com/evergreen.
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