In an agreement between two organizations who do much to help grow business in the states, the N.J. Economic Development Authority announced it will invest up to $6 million into Newark Venture Partners III – the third fund of the Newark-based group.
The agreement is through the EDA’s Venture Fund Investment Program.
As a requirement of the program, NVP III will work to match every dollar of the EDA’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.
EDA CEO Tim Sullivan was thrilled to make the announcement.
“Under Gov. Murphy’s leadership, New Jersey has been laser-focused on connecting entrepreneurs and companies of the future with access to capital,” he said. “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.”
NVP III is the third fund for Newark Venture Partners, the Newark-based early-stage venture capital firm. NVP leverages its corporate limited partner relationships to source potential investments, evaluate the commercial viability of opportunities, and add value to portfolio companies.
The top corporate investors include Audible, Prudential, RWJBarnabas, Bank of America and Horizon Blue Cross Blue Shield.
Kathleen Coviello, the EDA’s chief economic transformation officer, said the investment will have exponentially greater impact as it leverages the firm’s network and expertise, advancing the performance of technology businesses across the state, she said.
“Investing in early-stage firms such as these will lead to economic transformation, job growth, and innovation for diverse New Jersey companies,” she said.
The EDA 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. To date, 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.
NVP Managing Partners Dan Borok and Vaughn Crowe were delighted.
“The NJEDA has supported Newark Venture Partners from the beginning and continues to be a best-in-class partner as we evolve as a firm,” Borok said.
Vaughn agreed. “We value our ongoing partnership with the NJEDA and its efforts to propel New Jersey’s innovation economy forward,” he said.
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.