After discovering that only 10 percent of the venture capital raised in New Jersey is invested in New Jersey companies, a new venture fund has been established combining private, state, and federal resources. The seed investment fund will be used to assist New Jersey start-up technology businesses get off the ground.
Led by the nonprofit New Jersey Technology Council, NJTC Venture Fund partners include private investors and the New Jersey Economic Development Authority. The Authority is providing a 1:3 match for each private dollar raised, up to $10 million. Local newspapers report $22 million in private investment has been raised to date toward the goal of $30 million. The Small Business Investment Corporation (SBIC) program of the Small Business Administration may be used to further leverage the fund.
NJTC Venture Fund will provide between $300,000 to $3 million in seed money to start-ups in a variety of industries, including software, communications, biotech, photonics, healthcare, and electronics companies.
The NJTC was formed in 1996 as a private, non-profit organization dedicated to providing networking opportunities, information and other services to New Jersey technology businesses and now boasts a membership of about 1,000 high tech companies. The state development office estimates that there are some 3,000 more technology companies in Northern New Jersey than in Silicon Valley, but that initial investment is significantly lower in the Garden State’s new tech businesses.
More information is available at: http://www.njtc.org
