Facebook Twitter LinkedIn Google Plus RSS

Murphy wants $500M venture capital fund by end of 2019 fiscal year

By ,
From left, Assembly Speaker Craig Coughlin, Gov. Phil Murphy Murphy, and Senate President Stephen Sweeney at a press conference on the budget agreement in Trenton on June 30.
From left, Assembly Speaker Craig Coughlin, Gov. Phil Murphy Murphy, and Senate President Stephen Sweeney at a press conference on the budget agreement in Trenton on June 30. - ()

Gov. Phil Murphy is targeting the end of the 2019 fiscal year for the passage and enactment of a $500 million fund that would back local startups.

Gov. Phil Murphy is targeting the end of the 2019 fiscal year for the passage and enactment of a $500 million fund that would back local startups.

At a Wednesday roundtable at the Audible Inc. headquarters in Newark, Murphy said he will meet tonight with the state’s top Democrats — Senate President Stephen Sweeney, D-3rd District, and Assembly Speaker Craig Coughlin, D-19th District — to discuss aspects of his economic master plan unveiled last week.

“The general sense is we are all excited about this,” Murphy said.

Much of his plan would require action from the Legislature. The current fiscal year ends June 30, 2019. Sweeney and Coughlin's offices could not be immediately reached for comment.

The $500 million fund, formally called the New Jersey Innovation Evergreen Fund, entails the state selling $60 million in tax credits annually over five years, which is expected to raise $250 million.

The state would use the proceeds to invest in New Jersey-based startups, while private venture capital firms would match New Jersey’s investments by half. Proceeds from investments would go back into the fund, hence the “evergreen” aspect. Surplus money would go into the state’s general fund.

The New Jersey Economic Development Authority expects to make at least 90 cents for every dollar of tax credits it sells, according to a statement from the governor’s office.

More From This Industry

Daniel J. Munoz

Daniel J. Munoz


Daniel Munoz covers politics and state government for NJBIZ. You can contact him at dmunoz@njbiz.com.

Leave a Comment

test

Please note: All comments will be reviewed and may take up to 24 hours to appear on the site.

Post Comment
View Comment Policy

Comments

close