ICGF focuses on investing in minority and women-owned businesses
September 26, 2022
The New Jersey Economic Development Authority (NJEDA) has approved the investment of up to $1 million in the Innovative Capital Growth Fund (ICGF) through an investment in a limited partnership. The ICGF marks NJEDA’s 21st venture capital fund investment approval to date.
ICGF, a Delaware limited partnership, was formed last year to provide growth capital, primarily in the form of equity, to minority and women-owned businesses located largely in the central region of Atlantic. ICGF is expected to invest an additional $2 in New Jersey-based companies for every dollar committed by NJEDA. This would result in a target of $3 million in capital invested in New Jersey businesses.
“ICGF’s investment strategy aligns perfectly with Governor Phil Murphy’s vision to create the most diverse and inclusive innovation ecosystem in the nation,” said NJEDA Chief Executive Officer Tim Sullivan. “Through investments like this, we’re providing young companies with much-needed capital to leverage their growth, commercialization, and creation of good-paying jobs in New Jersey.”
Sullivan noted that, among its myriad resources for New Jersey’s innovation sector, the NJEDA helps increase the capital available to emerging innovation-driven companies by investing as a limited partner in capital funds. -risk who invest in companies based in New Jersey. Earnings from these investments are then used to provide new funding opportunities to support New Jersey businesses. To date, NJEDA has committed more than $64.5 million to 20 venture capital funds since 1999, not including this latest approval.
The Fund will be managed by Innovate Capital Growth GP, LLC, which is part-owned by The Enterprise Center (TEC). TEC is a nationally recognized community economic development center in Philadelphia that is uniquely focused on promoting economic growth by connecting minority and women-owned businesses to business, capital and community. TEC operates three federally contracted business centers, including the Camden Cares Business Center. The Camden Cares business center employs nearly 10% of TEC’s investment and operations professionals. TEC also operates a certified Community Development Financial Institution (CDFI). Through all of these instruments, TEC has helped small businesses win over $1 billion in contracts and financing, secure over $7 million in start-up loans, and create over 3,000 jobs for the community. local.
ICGF executives recently attended NJEDA’s New Jersey Founder & Funders event, where they met one-on-one with innovation-driven emerging companies. Della Clark, co-manager of ICGF and chair of TEC, said that as part of ICGF’s growing commitment to New Jersey’s innovation ecosystem, she and her co-directors have l intend to attend other New Jersey Founders and Funders events in the future.
“In recent years, New Jersey has demonstrated a strong commitment to strengthening opportunities for minority and women-led businesses and we are thrilled to have NJEDA as one of the ICGF investors.” , said Clark. “We have been continually impressed with the high caliber startups we have found in New Jersey and are proud to build our ability to support these emerging companies through this fund.”
ICGF has obtained a Small Business Investment Company (SBIC) license from the United States Small Business Administration. This designation will allow the company to access a wider pool of capital from private lenders and banks that can support their portfolio companies.
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