$45 MILLION SLATED TO ADVANCE EDISON INNOVATION FUND
Key Element of Economic Growth Strategy Supports Targeted Investments in Discovery, Development, Commercialization and Growth
TRENTON, N.J. (January 16, 2007) – Targeted investments of $45 million have been allocated to advance the Edison Innovation Fund, a key element of Governor Corzine’s Economic Growth Strategy to help create, sustain and grow technology and life sciences businesses in New Jersey. Coupled with $60 million in investments made earlier in 2006 through the Fund, New Jersey has now committed over $100 million to support and encourage innovation in the state.
The Edison Innovation Fund is a state effort managed by the New Jersey Economic Development Authority (EDA) that has been created to support technology and life sciences companies principally focusing on renewable energy, stem cell research, nanotechnology and communications through discovery, development and commercialization. The Fund will increase access to early-stage capital and provide specialized assistance to existing mid-sized and large technology and life sciences businesses, and also will build the capacity of New Jersey’s research colleges and universities in strategic areas that complement economic development.
“Growing jobs and supporting economic growth in the technology and life sciences industries are the cornerstones of the Economic Growth Strategy,” said EDA Chairman Dr. Carl E. Van Horn. “Building on Governor Corzine’s vision, the Edison Innovation Fund will support research and development in the growth and core industries that are vital to New Jersey’s economy.” The $45 million will be targeted to several investment areas, including:
- Edison Innovation Angel Guarantees
The angel guarantee fund was launched with Jumpstart NJ in 2006 with an allocation of $1 million. EDA will continue this commitment under the Edison Innovation Fund with an additional $1 million targeted for this purpose.
- Edison Innovation — Research & Development
Promising early-stage research companies can gain access to up to $100,000 in equity-like financing for non R&D related costs, in combination with up to $500,000 in grant funding from the New Jersey Commission on Science & Technology.
- Edison Innovation — Commercialization
Qualified early-stage companies seeking to bring their new project to market will be eligible for up to $200,000.
- Edison Innovation — Growth
Qualified companies seeking to grow their operations will be eligible for up to $1 million in funding. Applicants at this stage should have an independent reference-able “beta” and will have “fresh” match funding.
- Edison Innovation “Fund of Funds”
EDA has put in place new guidelines to ensure that its venture capital investments are aligned with the Economic Growth Strategy and consistently support the success of emerging New Jersey-based businesses. It is estimated that approximately $20 million in venture funds commitments will occur with investment in three or four funds.
“The initiatives advanced by the EDA will maximize the goals of the Edison Innovation Fund and further encourage the location and growth of technology and life science businesses and jobs in New Jersey,” EDA Chief Executive Officer Caren S. Franzini said. “EDA and its partners are looking closely at making thoughtful, targeted investments in the companies with the greatest potential to bring vital new products to market.”
The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and entrepreneurial training, and real estate development activities.
For regular updates on the Edison Innovation Fund, visit: http://nj.gov/njbusiness.