About this programme
The NJ Innovation Evergreen Fund (NJIEF) is a public-private venture capital platform run by the New Jersey Economic Development Authority (NJEDA). It was created under the Economic Recovery Act of 2020 (sections 20-34) and updated by P.L. 2023, c.118, to address a venture capital shortfall for early-stage New Jersey companies.
The fund works through two linked mechanisms. On one side, NJEDA runs an annual competitive auction where corporations bid to purchase New Jersey state tax credits, offsetting up to 25% of their Corporation Business Tax or Insurance Premium Tax liability. NJEDA is authorized to offer up to $300 million of these tax credits over seven years. On the other side, the proceeds raised from that auction are deployed as co-investment capital alongside NJEDA-approved venture capital firms into qualifying early-stage New Jersey businesses.
Dividends and returns on the fund's investments are reinvested back into the fund rather than returned to the state, which is why it is called "evergreen" — it is designed to be self-sustaining over time rather than a one-time grant pool.
As of NJEDA's most recent published figure (April 22, 2026), the fund had $65,029,875 in unallocated capital available for initial and follow-on investments, management fees, and ecosystem-support activity. NJEDA has already certified 39 Qualified Venture Firms and the fund has backed 15 approved portfolio companies across sectors including AI, biotech, healthcare IT, and materials science.
How it works
Corporate tax credit auction: corporations bid competitively to purchase NJ state tax credits at or above a floor price (minimum $0.75 per credit dollar, minimum bid size $500,000). Bids are scored on price plus the strategic commitments the bidder makes to New Jersey's innovation ecosystem (mentorship, networking, talent development, ecosystem building). The 2025 auction round opened September 2, 2025 and closed October 3, 2025.
Venture firm certification: NJEDA separately certifies Qualified Venture Firms. To qualify, a firm must manage at least $10 million in assets, have at least two full-time principals each with 5+ years of money-management experience, and demonstrate documented diversity, equity and inclusion policies and track record.
Co-investment: certified Qualified Venture Firms apply to NJEDA for co-investment into specific deals ('Qualified Investments'). A QI must match the firm's own investment at least 1:1, is capped at $5 million per company (rising to $6.25 million if the company uses IP developed at an NJ university, is a university spin-off, or is state-certified as a minority- or women-owned business), and the minimum initial QI is $100,000. Each Qualified Venture Firm can draw capital for up to two initial Qualified Investments per calendar year (so up to $10–12.5 million in initial capital per year), plus up to $6.25 million in follow-on capital per QI per year via a separate Follow-on Investment application.
Portfolio support: companies that receive NJIEF-backed investment gain access to a Fund Advisory Board made up of the corporations that purchased tax credits in the auction, intended to provide strategic support beyond capital.
Who can apply
NJIEF does not fund companies directly — capital only reaches a business when a Qualified Venture Firm chooses to co-invest with NJIEF funds. To be eligible for that co-investment, a portfolio company must be registered and operating in New Jersey with intent to maintain its principal operations in the state, have fewer than 250 full-time employees, and be classified by NJEDA as a 'high-growth' business (generally 25%+ trailing twelve-month revenue, customer, or valuation growth, or comparable forward projections for pre-revenue companies) in a targeted industry.
Businesses holding a cannabis license or certification from the NJ Cannabis Regulatory Commission are statutorily excluded from most NJEDA incentives, including this program.
On the capital-supply side, corporations bidding in the tax credit auction must be registered in New Jersey with valid state tax clearance, meet the $500,000 minimum bid, and commit to supporting the state's innovation ecosystem as part of their bid.
How to apply
- There is no direct "apply for a grant" path for a startup — engagement starts with the venture capital market NJIEF has built. Review the list of 40+ NJEDA-approved Qualified Venture Firms, filtered by sector focus, stage, and typical check size (ranging roughly $250K to $40M depending on firm).
- Email njief@njeda.com with a non-confidential executive summary or pitch deck, naming which listed venture firms are a good fit for your business and your own contact details for direct follow-up. NJEDA states it is not responsible for the response or follow-up of the venture firms it lists.
- If a Qualified Venture Firm decides to invest, that firm — not the company — submits the Qualified Investment application (and, for a later round, the Follow-on Investment application) to NJEDA to draw NJIEF co-investment capital into the deal.
- Venture firms seeking NJIEF certification apply separately at forms.business.nj.gov/evergreen-fund/.
- Corporations seeking to bid in the annual tax credit auction apply through NJEDA's published auction process when a round is open; the most recent round ran September 2 – October 3, 2025.
Documents you’ll typically need
- Non-confidential executive summary or investor pitch deck (for companies emailing njief@njeda.com)
- Qualified Venture Firm application (submitted by the VC firm, not the company)
- Qualified Investment application (submitted by the VC firm once it decides to invest)
- Follow-on Investment application (submitted by the VC firm for additional rounds into an existing portfolio company)
- Tax clearance certificate (for corporations bidding in the tax credit auction)
Frequently asked
Can my company apply to NJIEF directly for funding?
No. NJIEF does not accept direct funding applications from companies. Capital reaches a business only when an NJEDA-certified Qualified Venture Firm chooses to co-invest, using NJIEF funds alongside its own. The company's job is to get in front of the right venture firm, not to apply to NJEDA.
How do I get introduced to a Qualified Venture Firm?
Review NJEDA's published list of Qualified Venture Firms, which is sorted by sector focus, stage, and typical check size, then email njief@njeda.com with a non-confidential executive summary or deck naming the firms you think are a fit. NJEDA passes this along but is not responsible for whether or how a firm responds.
Is my company eligible for NJIEF-backed investment?
A portfolio company must be registered and operating in New Jersey with intent to keep its principal operations there, have fewer than 250 employees, and be classified as a high-growth business in a targeted industry. Cannabis license or certification holders are excluded by statute.
How much money is actually available right now?
As of NJEDA's April 22, 2026 published figure, the fund had $65,029,875 in unallocated capital, covering initial and follow-on investments, management fees, and ecosystem support. This figure moves as auctions raise more and investments deploy, so check njeda.gov/evergreen/ for the current number rather than relying on a fixed amount.
Where does the investment money come from?
From an annual auction in which corporations buy New Jersey state tax credits (against Corporation Business Tax or Insurance Premium Tax liability), which NJEDA is authorized to offer up to $300 million of over seven years. Auction proceeds fund the co-investment side of NJIEF.
How large a check can a Qualified Venture Firm deploy from NJIEF?
A Qualified Investment must match the venture firm's own investment at least 1:1 and is capped at $5 million per company ($6.25 million for university-IP, university spin-off, or certified minority-/women-owned businesses), with a $100,000 minimum. Each firm can draw capital for up to two initial Qualified Investments per calendar year (up to $10–12.5 million in initial capital per year), plus follow-on capital. Actual deal size also depends on the venture firm's own strategy and typical check size, which NJEDA publishes per firm (roughly $250K to $40M across the firm roster).
Does NJIEF invest directly, or only alongside a venture firm?
Only alongside a venture firm. Every Qualified Investment is structured as a purchase of stock made through an SPV that the Qualified Venture Firm sets up and manages, matching that firm's own investment on the same terms in the same funding round. NJIEF does not fund SAFEs or convertible notes as the initial instrument, and it does not invest in a company that has no venture firm attached to the deal.
Does CapEasy help with an NJIEF application?
CapEasy can help you prepare the executive summary and financial materials used to approach Qualified Venture Firms, and can help a portfolio company organize the documentation a venture firm typically requests during diligence. We do not lodge applications with NJEDA or a venture firm on your behalf, and we make no representation about investment outcomes.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.