To: New Jersey Biotechnology Community
From: Debbie Hart, President
Re: Funding Available to Help Life Sciences and Tech Companies Leverage Angel and Venture Fund Investments
We are writing to advise of the following announcement issued today by Governor Christie.
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TRENTON - Governor Chris Christie announced on August 2 that funding is now available for life sciences and tech companies through three programs offered by the New Jersey Economic Development Authority (EDA). The products target emerging companies that have attracted capital through angel and venture capital investors.
"The success of New Jersey's life sciences companies is critical to growing the State's economy and essential to maintaining our role as a leader in the development of innovative technologies that enhance and save lives while creating high-paying jobs and attracting private investment," said Governor Christie. "These programs will strengthen New Jersey's entrepreneurial environment by providing businesses that have attracted matching investments from angel investors and venture funds with the additional resources they need to thrive."
The three programs, which are structured as subordinated convertible debt, will benefit early stage, emerging technology and life sciences companies by providing growth capital to directly fund uses such as hiring key staff, product marketing and sales:
· Edison Innovation Angel Growth Fund, providing up to $250,000 to leverage the funding from private angel investors, with a 2:1 angel matching fund requirement;
· Edison Innovation VC Growth Fund, providing up to $500,000 to leverage the funding from venture capital-backed investments, with a 1:1 venture capital matching fund requirement;
· Edison Innovation Growth Stars Fund, providing "follow on" funding of up to $500,000 to support the best performing Edison Innovation Fund -assisted companies that have received 1:1 match funding from an angel investor/group or venture capital firm.
The EDA has a history of successful investment in the technology and life sciences sector. Through its Edison Innovation Fund, the EDA has provided over $27 million in direct, equity-like investments to 45 technology and life sciences companies that have created an estimated 1,140 new jobs and leveraged over $118 million in total investment in New Jersey's economy. The EDA enhanced its existing portfolio with the three products announced today.
"The Christie Administration has placed a high importance on growing New Jersey's innovation economy, and these programs will allow the State to sustain its support for technology-led economic development," EDA CEO Caren S. Franzini said. "Providing emerging companies with funding in this way will help to increase access to essential resources and attract more private investment in these companies as they advance through their life cycle of growth."
To further help New Jersey regain and grow its reputation as a home for innovation, Governor Christie increased available funds from $30 million to $60 million through the innovative Technology Business Tax Certificate Transfer Program in the FY 2012 budget. The Governor also recently signed into law a measure to increase the R&D credit to 100 percent. Previously, R&D spending in New Jersey was used to offset up to 50 percent of corporate tax liability. The new law will allow critical and economically-beneficial R&D spending in the state to be used to offset all of the corporate tax liability.
For additional information on the programs, visit www.njeda.com. To learn more about opportunities for business growth throughout New Jersey, visit the state's business portal at www.NewJerseyBusiness.gov.
