TRENTON, N.J. — The New Jersey Economic Development Authority board has approved 10 corporations to purchase $85 million in tax credits to support the New Jersey Innovation Evergreen Fund, marking the program’s second tax credit auction since its launch in 2022.
The Innovation Evergreen Fund is designed to expand access to venture capital and strategic resources for early-stage companies across the state. Through the program, New Jersey acts as an equity investor, deploying up to $600 million alongside professional venture capital firms. About $13.6 million in unallocated capital remains available for additional investments in high-growth New Jersey businesses.
“Both investors and entrepreneurs have praised the NJIEF as a strong driver for channeling investment into New Jersey startups, and once again business leaders have recognized the Fund’s significant value,” said NJEDA Acting Chief Executive Officer Mary Maples. “The Murphy Administration has bolstered New Jersey’s innovation economy by engaging with the state’s industry leaders to catalyze investment and foster mentorship and networking opportunities for emerging entrepreneurs.”
Following an inaugural sale in 2022, a second $50 million tax credit auction was announced earlier this year. Due to higher-than-expected demand, funding for the auction was increased in September to $85 million. The approved companies represent industries including financial technology, information technology consulting, consumer goods, insurance, banking and health care.
“The NJIEF provides the Authority with another distinct resource to support start-ups through a holistic approach that extends well beyond financial assistance,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “This recent tax credit auction demonstrates the state’s commitment to supporting innovative ventures and we look forward to continuing to invest high-growth startups that will propel economic growth across the state.”
The companies approved to purchase tax credits through the Innovation Evergreen Fund are OceanFirst Financial Corp.; Verizon Communications Inc.; Metropolitan Life Insurance Co.; Comcast Corp.; The Prudential Insurance Company of America; Selective Way Insurance Co.; Unilever United States Inc.; Cross River Bank; CGI Technologies and Solutions Inc.; and Haleon US Holdings Inc.
As part of the auction, each corporation committed to supporting the state’s innovation economy beyond their financial bids, including serving on the NJIEF Advisory Board for one year. The companies also made strategic commitments totaling nearly $4.4 million to support New Jersey’s innovation community. Those commitments include workforce development and mentorship programs, free shared workspace for startups, and partnerships with strategic innovation centers. Networking, mentoring and educational initiatives were scored components of the bidding process.
Funds generated through the auction will support investments in high-growth New Jersey companies through public-private partnerships with Qualified Venture Firms, which also invest private-sector capital. NJEDA officials said portfolio companies and innovation ecosystem stakeholders across the state will benefit from both the financial investments and the strategic commitments made by participating corporations.
Applications remain open for venture firms seeking designation as Qualified Venture Firms, and approved firms may apply for investments in eligible New Jersey-based startups. Approximately $13.6 million remains available for new investments, according to the NJEDA.
