New Biotech Venture Fund In New Jersey

Already home to the nation's largest concentration of major pharmaceutical manufacturers, New Jersey is now looking to bolster its roster of biotechnology companies. Last week, State Treasurer John E. McCormac announced the state is creating a $10 million venture capital fund to help launch new life-sciences companies.

"We're thrilled; this is exactly what we need," said Debbie Hart, president of the Biotechnology Council of New Jersey. "There's a lack of early-stage life-sciences company funding in New Jersey. To have the state government step forward and kick something like this off is great. I keep pinching myself hourly to make sure I'm not dreaming."

The fund is being created to make equity investments in early-stage biotech and life-sciences companies. The state plans to hire a private fund manager, who will work with the Biotechnology Council of New Jersey to determine the criteria that will be used for making investments. Only life-sciences companies based in New Jersey will be eligible to participate.

Proceeds from a $50 million state Business Employment Incentive Program bond issue planned for November will be used to finance the $10 million biotech fund. The fund will be part of a $50 million venture fund the Garden State is planning to establish to spur the formation of new companies and new jobs in the state.

How is New Jersey doing in biotech? New Jersey is already home to about 120 biotech companies with more than 8,000 employees, according to the N.J. biotech council. An industry report issued earlier this year by Ernst & Young credited New Jersey with 69 public and private biotech companies, placing it fifth on the firm's ranking of biotech companies by state.

Good more New Jersey!

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