CityWorks in the Press
State's venture funds angle for private partners
Friday, December 29, 2006
BY BETH FITZGERALD
Star-Ledger Staff
The state has two new investment funds for high-tech ventures and inner-city development, and yesterday said it wants those funds to partner with New Jersey-focused investors who will generate three dollars of private money for every dollar in public money.
The investment guidelines announced yesterday should "make it clear to the investment community exactly the kind of partnerships we are looking to build and how we are seeking to build them," Caren Franzini, chief executive of the state Economic Development Authority, said in a statement.
In September, Gov. Jon Corzine launched two new state-backed investment funds, the Edison Inno vation Fund and the New Jersey Urban Fund. The Edison fund received $150 million in state funds, while the urban fund got $185 million.
The EDA said the two funds will invest in other venture capital funds that bankroll New Jersey firms, and will also make direct investments in individual New Jersey companies.
The EDA said it has a "strong preference" for funds with a physical presence in New Jersey that have a track record for investing a minimum of one-third of their funds in the state.
Other guidelines include the ex pectation of a reasonable rate of re turn on the state's money, measured both by financial results and job growth. The senior partners of technology and life sciences funds will be required to make a personal investment in any fund the EDA in vests in.
Jay Trien, president of the Ven ture Association of New Jersey, said the EDA's guidelines are reasonable.
"They are focusing on the issues without creating a bureaucratic punch list that makes people say, 'I don't want to deal with this,'" he said.
Trien said the state is addressing a shortage of early-stage capital focused on New Jersey enterprise.
"I know a lot of early-stage investors around the country who think New Jersey is underserved, and they say New Jersey is a good market because they don't have as much competition when they price a deal," Trien added.
Both the Edison and urban fund have already made several major investments.
The Edison fund recently provided $750,000 to Provid Pharmaceuticals, a drug discovery company in North Brunswick, and $1 million to Archive Systems, a Fairfield document storage services company.
In November, the New Jersey Commission on Science and Technology announced $2.5 million in grants to 19 New Jersey high-tech companies via the Edison fund.
The EDA said the Urban fund will soon close on a $20 million investment in Neptune by CityWorks, a nonprofit that will redevelop the town's West Lake Avenue commercial corridor.
The EDA commited $12.5 million in October to Goodmill in Millville, which is developing the Union Lake Shopping Center. The center will have 25 retail tenants, including ShopRite and Circuit City.
Beth Fitzgerald may be reached at efitzgerald@starledger.com or (973) 392-4111.
Friday, December 29, 2006
BY BETH FITZGERALD
Star-Ledger Staff
The state has two new investment funds for high-tech ventures and inner-city development, and yesterday said it wants those funds to partner with New Jersey-focused investors who will generate three dollars of private money for every dollar in public money.
The investment guidelines announced yesterday should "make it clear to the investment community exactly the kind of partnerships we are looking to build and how we are seeking to build them," Caren Franzini, chief executive of the state Economic Development Authority, said in a statement.
In September, Gov. Jon Corzine launched two new state-backed investment funds, the Edison Inno vation Fund and the New Jersey Urban Fund. The Edison fund received $150 million in state funds, while the urban fund got $185 million.
The EDA said the two funds will invest in other venture capital funds that bankroll New Jersey firms, and will also make direct investments in individual New Jersey companies.
The EDA said it has a "strong preference" for funds with a physical presence in New Jersey that have a track record for investing a minimum of one-third of their funds in the state.
Other guidelines include the ex pectation of a reasonable rate of re turn on the state's money, measured both by financial results and job growth. The senior partners of technology and life sciences funds will be required to make a personal investment in any fund the EDA in vests in.
Jay Trien, president of the Ven ture Association of New Jersey, said the EDA's guidelines are reasonable.
"They are focusing on the issues without creating a bureaucratic punch list that makes people say, 'I don't want to deal with this,'" he said.
Trien said the state is addressing a shortage of early-stage capital focused on New Jersey enterprise.
"I know a lot of early-stage investors around the country who think New Jersey is underserved, and they say New Jersey is a good market because they don't have as much competition when they price a deal," Trien added.
Both the Edison and urban fund have already made several major investments.
The Edison fund recently provided $750,000 to Provid Pharmaceuticals, a drug discovery company in North Brunswick, and $1 million to Archive Systems, a Fairfield document storage services company.
In November, the New Jersey Commission on Science and Technology announced $2.5 million in grants to 19 New Jersey high-tech companies via the Edison fund.
The EDA said the Urban fund will soon close on a $20 million investment in Neptune by CityWorks, a nonprofit that will redevelop the town's West Lake Avenue commercial corridor.
The EDA commited $12.5 million in October to Goodmill in Millville, which is developing the Union Lake Shopping Center. The center will have 25 retail tenants, including ShopRite and Circuit City.
Beth Fitzgerald may be reached at efitzgerald@starledger.com or (973) 392-4111.
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