The New Jersey Economic Development Authority‘s board approved investing up to $1 million into the Innovate Capital Growth Fund — its 21st venture fund investment approval to date.
ICGF, a Delaware limited partnership, was created last year to provide growth capital, primarily in the form of equity, to minority- and women-owned businesses located substantially in the mid-Atlantic region.
ICGF is expected to invest an additional $2 in New Jersey-based companies for every $1 the NJEDA commits. This would result in a target of $3 million of capital invested into New Jersey companies.
“ICGF’s investment strategy aligns perfectly with Gov. Phil Murphy’s vision to create the most diverse and inclusive innovation ecosystem in the nation,” NJEDA CEO Tim Sullivan said. “Through investments such as this one, we are providing much-needed capital for young companies to leverage as they grow, commercialize and create good-paying jobs in New Jersey.”
Sullivan noted that, among its myriad resources for New Jersey’s innovation sector, the NJEDA helps increase available capital for emerging innovation-focused companies by investing as a limited partner in venture capital funds that invest in New Jersey-based enterprises. Gains resulting from these investments are then used to offer new funding opportunities to support New Jersey businesses.
To date, the NJEDA has committed over $64.5 million to 20 venture capital funds since 1999, not including this latest approval.
ICGF was awarded a Small Business Investment Company license from the U.S. Small Business Administration. Having this designation will enable the firm to access a wider pool of capital from private lenders and banks that may support companies in their portfolio.
