New Jersey ranks ninth in the nation in venture capital dollars invested per state, according to a study by PitchBook, a Software-as-a-Service company that delivers data, research and technology covering private capital markets.
According to PitchBook, innovation-focused companies in New Jersey secured $5.5 billion in 219 venture capital deals in 2021, up from $1.7 billion thorough 154 deals in 2020. The increase is even greater compared with 2017, when the state had $818 million in 143 venture capital deals.
New Jersey’s No. 9 ranking is three spots higher than where it stood in 2020, when it was No. 12. The state was No. 16 in 2013.
New Jersey’s share of the Northeast market also grew, by 1.4 percentage points in 2021, to 5.5%.
New Jersey is the 11th largest state in the country.
“We’re very encouraged to see the VC community invest in New Jersey startups on a scale we haven’t seen in decades,” Gov. Phil Murphy said. “It’s well known that New Jersey is the birthplace of innovation, but investors are clearly showing that our state is the future of innovation as well.”
Murphy has made recapturing the state’s role as a leader in innovation a top priority. In January 2021, Murphy signed the New Jersey Economic Recovery Act of 2020 — which calls for the establishment of the New Jersey Evergreen Fund, which is designed to create the ecosystem conditions necessary for entrepreneurs to succeed. Expected to launch this year, the NJEF will create a platform for even greater investment opportunity in New Jersey businesses by leveraging public and private funds to invest in New Jersey-based companies.