Listen to this articleThe basics:
- NJ Innovation Evergreen Fund invests in PolyGone Systems, JOGO Health, Hill Research
- Funding supports cleantech, digital health, AI-driven clinical trial technology
- Program pairs state capital with venture funds to grow New Jersey’s innovation ecosystem
- NJEDA recently raised $85M in tax credits to expand future investments
The New Jersey Innovation Evergreen Fund continues its rapid growth and evolution in the state – serving as an important tool toward expanding the Garden State’s innovation ecosystem.
NJIEF launched in 2022. The initiative increases access to strategic resources and venture capital. It creates partnerships between the state and private sector to corporations and Qualified Venture Funds to support entrepreneurs, with the state auctioning discounted tax credits to large corporations.
The NJEDA announced Dec. 10 it recently closed on investments totaling $6.2 million for three cutting-edge businesses through the NJIEF.
Under the program, the state acts as an equity investor in emerging companies deploying up to $600 million into companies alongside the QVFs. Meanwhile, the tax credit purchasers make commitments to provide strategic support of the innovation ecosystem, including networking, mentoring and educational opportunities.
PolyGone Systems, Princeton
- Received $1.25 million NJIEF investment backed by FYRFLY Venture Partners
Founded by Princeton University graduates Yidian Liu and Nathaniel Banks, the company is revolutionizing the water treatment industry through the use of its patented filtration media.
“The New Jersey Evegreen Fund has been transformational for our company, PolyGone Systems,” said Liu. “The Evergreen Fund served as a powerful catalyst, motivating investor commitments and enabling us to close our full seed round within just six months.
“Throughout the process, the Evergreen team was collaborative and deeply supportive, working closely with our team and prospective investors to help accelerate the round. Their involvement is a testament to New Jersey’s commitment to advancing cleantech innovation and supporting startups addressing urgent environmental challenges. Looking ahead, we’re proud to be expanding our operations by establishing our new headquarters in Kearny.”
JOGO Health, Bridgewater
- Received two investments through the NJIEF
- One for $2 million through an application submitted by Atma Capital
- Another for $1.18 million backed by Creative Ventures Management LLC
The MedTech and digital health company focuses on developing treatments for chronic pain and neuromuscular disorders.
“The NJEDA, and in particular the Evergreen Fund, continues the long tradition of keeping New Jersey at the forefront of the innovation company,” said Sanjali Murali, co-founder and CEO of JOGO Health. “This funding has been key to further commercialization of digital therapies that are a gamechanger for millions of patients who suffer from migraines, incontinence, and stroke related movement disorders.”
Hill Research, Bridgewater
- Receiving an NJIEF investment of $1.75 million through application submitted by Covenant Venture Capital
The AI startup relocated from Boston to Bridgewater. It leverages Generative AI to accelerate the last mile of clinical trials for pharmaceutical companies.
“Clinical trial data analysis is often repetitive and slow, with processes like double programming taking valuable time away from biostatistics experts. Hill Research changes that process with AI tools that automate routine work while keeping human expertise at the center for accuracy and control,” said Louise Liu, co-founder and CEO. “Our platform helps biostatistics teams to interpret data faster and make smarter decisions that accelerate drug development, bringing new treatments to patients sooner.
“Support from NJEDA allows us to expand our R&D team, strengthen partnerships, and scale our technology across the biopharma sector.”
“The Evergreen Innovation fund program demonstrates the effectiveness of a public-private partnership when its designed to achieve specific outcomes, including more founders funded, faster growth, and stronger talent pipelines,” said Rene Baston, venture partner at Covenant Venture Partners.
A custom-built solution
NJEDA Chief Executive Officer Tim Sullivan said that under Gov. Phil Murphy’s leadership, New Jersey has strengthened its reputation as a global innovation hub by making significant investments in the next wave of groundbreaking companies based in the Garden State.
“The New Jersey Innovation Evergreen Fund is a pioneering initiative that strengthens New Jersey’s economy by combining public and private funding to support high-potential startups and entrepreneurs and creating a sustainable investment cycle for innovators who require access to capital,” said Sullivan.
The NJEDA recently auctioned $85 million in tax credits to raise additional capital, which will it will offer for investment early next year.
“These investments build on the momentum of the NJIEF and highlights the state’s dedication to backing emerging minority and women-led businesses and entrepreneurs,” said NJEDA Chief Economic Transformation Officer Kathleen Coviello. “By generating a steady flow of venture capital into high-growth startups, the NJIEF will keep fueling job creation and economic development throughout New Jersey.”
NJBIZ spoke to Coviello, who described the NJIEF as a quite unique investment platform.
“It really was born out of circumstance,” Coviello told NJBIZ. “In New Jersey, we have all of these amazing corporate taxpayers and brand name, marquee companies in the state. We have a lack of venture capitalists in the state – and we wanted to drive innovation. We looked at those three parties, and said – how do we custom-build an investment that works for New Jersey’s unique situation.
“And hence born the Evergreen Fund.”
‘An opportunity to engage’
She explained how capital is raised through the tax credit auction.
Speaking of innovation
BioNJ President and CEO Debbie Hart sits down with NJBIZ to discuss life sciences growth in New Jersey, successful state initiatives and more. Read our interview here.
“We know New Jersey is an expensive state for corporates to do business in. We want to give them an opportunity, not only to benefit – they’re reducing their tax liability by bidding on these tax credits. But they also need to commit something to the innovation economy. So, we didn’t want it to just be a financial transaction. We wanted it be an opportunity to engage.”
She stressed how vital that commitment and engagement from these large companies – of which N.J. boasts many – is to the program and the broader innovation ecosystem.
“Put our money where our money where our mouth is – give them a tax break,” she explained. “But then require them to be part of the innovation economy.”
Examples of commitments from participating corporations include:
- Verizon committing $750,000 to launch a startup studio, along with mentorship, office space and marketing support for early-stage founders
- Haleon partnering with Rutgers Business School to create an experiential MBA consulting course
- CGI investing $160,000 in STEM camps, internships and training for underserved high school students
- Cross River Bank funding mentorship and showcase grants for minority and women founders, totaling $145,000
Deana Lykins is lead of government affairs of Haleon. Headquartered in Warren, the consumer health care company will move next year to The Park in Berkeley Heights. Spun out of GSK, Lykins noted how integral startups are to the sector in terms of innovation.
It was just a win-win all around.
— Deana Lykins, lead of government affairs, Haleon
“We were super interested in what was out there in New Jersey that we were unaware of,” Lykins told NJBIZ. “And to be honest, the tax auction was also a great incentive. It would be dishonest to say otherwise – so that was a part of it. And then finally, we do have a longstanding relationship with Rutgers. And we liked the opportunity of being able to highlight that and how we pride ourselves on working with the State University.
“Because not only could they potentially come up with new, innovative ideas. But they’re a huge piece of our incoming workforce; whether it be in our finance area or marketers or communications. In addition, we work with the medical schools – and we work with the dentists and the pharmacy schools, helping with our product categories.
“So, it was just a win-win all around.”
A ‘clear focus’
PolyGone’s Liu said that the NJIEF funding has allowed the business to move into a new space with a dedicated lab for analysis — as well as more space for pilot testing and manufacturing.
PolyGone has launched the world’s first industrial microplastic treatment pilot, in conjunction with the Atlantic County Utilities Authority (ACUA). The funding has also offered the chance to increase staffing. PolyGone expanded to a team of 10. Beyond helping with growth and building projects quicker, it also boosts sales and marketing, with the company recently engaging an external sales team.
Liu said the experience dealing with the NJEDA has been a pleasant one. She and noted that PolyGone has also utilized the NJEDA’s Manufacturing Voucher Program (NJMVP), which NJBIZ has reported extensively on, toward the purchase of heavy equipment.
“They’re very creating in the programs,” said Liu. “All of those are designed with a very clear focus that I rarely see in other states’ programs. And the working relationship between us and those teams is not us versus government. It’s actually very collaborative.”
Coviello said the message the NJEDA is sending with this program is that we have all of the important pieces here in Jersey.
“Look at the value that we are creating – and I would suggest, look out three, five years, and you’re going to see a top performing fund in the Evergreen Fund,” said Coviello. “Because it’s going to pull all those pieces together – different stages, different industries, different corporate partners. I’m hoping it’s going be best-in-class, this fund – top quartile, if not top decile performing fund.
“And at the same time, being extremely impactful and growing jobs in this innovation economy in the state.”
More information on the NJIEF program is available here.
