That pot of money Lt. Gov. Kim Guadagno promised N.J. tech companies in July finally became available last week in the form of three programs that, in Gov. Chris Christie’s words, “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 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 the hiring of key staff, product marketing and sales. They are:
- 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.
EDA CEO Caren 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.”