The N.J. Economic Development Authority recently closed on two new investments through the N.J. Innovation Evergreen Fund.
Nascent Materials, Inc. received an initial Qualified Investment of $750,000 through an application for co-investment submitted by the Princeton-based venture capital firm, SOSV.
Enquyst Technologies, Inc. received an initial Qualified Investment of $3 million through an application for co-investment submitted by the New York City-based venture capital firm Eckuity Capital.
“The New Jersey Innovation Evergreen Fund is a groundbreaking tool aimed at strengthening New Jersey’s economy and backing high-potential startups by creating a self-sustaining cycle of investment for entrepreneurs seeking capital,” EDA CEO Tim Sullivan said.
“Under Gov. Murphy’s leadership, the Garden State is cementing its position as a global hub for innovation by supporting the next generation of transformative businesses.”
The NJIEF, launched in 2022, is a unique tool to increase access to strategic resources and venture capital in New Jersey. Under the NJIEF, the state acts as an equity investor in early-stage companies, deploying up to $600 million into companies alongside professional venture capital firms. The Evergreen Fund currently has approximately $19 million of unallocated capital available to fund additional investments into high-growth businesses in New Jersey.
Kathleen Coviello, the chief economic transformation officer of the EDA, said the investment will have big impact.
“The NJEDA’s funding for Nascent Materials and Enquyst will accelerate each companies’ growth by providing essential resources for success,” she said. “With four investments already made, the New Jersey Innovation Evergreen Fund shows no signs of slowing, demonstrating the state’s strong commitment to supporting young, innovative ventures.
“NJIEF’s continuous venture capital investments in high-growth startups play a key role in driving job creation and economic growth across the state.”
Nascent Materials develops cost-effective cathode active materials, a key input in lithium-ion batteries. Cathodes are the single most expensive component of lithium-ion batteries, representing roughly 40 percent of total battery cell cost, with current cathode production capacity largely stemming from manufactures based in China. Nascent Materials is currently working out of SOSV-sponsored HAX, a startup development program and Strategic Innovation Center for pre-seed hard tech companies located in Newark. EDA’s investment of $750,000 into Nascent Materials’ Seed fundraising round attracted additional international and out-of-state capital of $1,550,000 resulting in /private/ public multiplier of 2:1.
Founded in 2017 and headquartered in Short Hills, Enquyst Technologies is a manufacturing technology company that developed an advanced modular equipment and process platform designed to enhance biomanufacturing, specifically in the purification of complex drugs. The company’s platform focuses on the production of monoclonal antibodies (mAbs), bispecific antibodies, protein therapeutics, biosimilars, and gene therapies, all of which are high-demand market segments in biologics, with mAbs being the largest.
Currently, the production capacity for these drugs meets only 50 percent of the market’s demand, with Enquyst looking to close that gap. Enquyst was founded in Boston, Massachusetts where the technology has been developed, but is pivoting its core operations to New Jersey as a result of the proposed Program investment and to leverage the state’s strong biotech ecosystem. EDA’s investment into Enquyst is expected to catalyze additional private funding on a 3:1 basis.
