Funding & Investment · Ben Buzz · Jan 20, 2026

$25 Million Fund Established to Support New Jersey Startups

A $25 million fund has been launched to support New Jersey startups, particularly in the cleantech and AI sectors, with $6.2 million allocated specifically for these industries. Scheduled to launch on March 27, 2025, at Princeton University, the initiative aims to boost the state's innovation economy, create jobs, and retain talent through partnerships with the private sector and academia.

A new $25 million fund has been established to support startups in New Jersey, with a significant focus on the cleantech and artificial intelligence (AI) sectors. This initiative aims to boost investment in New Jersey's innovation economy and retain talent within the state.

Focus on Cleantech and AI Sectors

The fund, known as the New Jersey Innovation Evergreen Fund, has allocated $6.2 million specifically to support startups within the cleantech and AI industries. By concentrating efforts on these sectors, the fund aims to drive job creation and expand New Jersey's innovation economy. This aligns with broader state goals to enhance its global competitiveness and encourage positive trends for startups in the region.

Startups in these sectors will benefit from various support mechanisms, including tax incentives and grants. These measures are designed to encourage innovation and business growth while aiming to keep talent within New Jersey. The potential for a major innovation boom is bolstered by the fund's focus on partnership and collaboration between the private sector and academia.

Launch and Location

The official launch of the fund is set for March 27, 2025, and will take place at Princeton University. This location is significant, as the university is a hub for research and innovation, providing a fertile ground for startups to flourish. The fund supports early- and growth-stage AI companies, serving as a catalyst for AI startups in New Jersey.

The initiative is part of a broader effort to establish New Jersey as a leader in AI innovation. The fund aims to strengthen AI leadership and support the growth of the state's innovation ecosystem. It is expected to play a crucial role in retaining businesses within New Jersey, reinforcing the state's historical identity as the original startup state.

Partnerships and Management

The fund is supported by the New Jersey Economic Development Authority and backed by private-sector players such as CoreWeave. It is managed by the Plug and Play accelerator, which plays a key role in connecting startups with mentors and investors. This collaboration is crucial in providing startups with access to both capital and expertise.

The New Jersey AI Hub, located at Princeton University in West Windsor, has launched an AI accelerator program powered by Plug and Play. This program supports AI startups at multiple stages, emphasizing mentorship and investor connections. By engaging residents, researchers, and businesses, the initiative aims to create AI-based solutions that can address various challenges.

Impact and Future Prospects

According to a report by Rutgers, there is a rising use of AI in New Jersey, indicating a growing market for AI-based software solutions. The new fund is poised to support this growth by providing resources and opportunities for startups linked to the NJ AI Hub. The annual cohort of startups in the accelerator program will benefit from structured support, driving job creation in innovation sectors.

Overall, the establishment of this fund marks a significant step in enhancing New Jersey's innovation landscape. By focusing on cleantech and AI, and fostering collaboration across sectors, the fund not only aims to retain talent but also to position New Jersey as a competitive player on the global stage. As the fund rolls out, it will be closely watched for its impact on the local economy and its ability to stimulate innovation.

FAQs

What is the total amount of the fund established for New Jersey startups?
The total amount allocated for supporting New Jersey startups is $25 million.
How much of the fund is specifically allocated to cleantech and AI startups?
The fund has allocated $6.2 million specifically to support startups within the cleantech and AI industries.
When is the New Jersey Innovation Evergreen Fund scheduled to launch?
The fund is set to officially launch on March 27, 2025.
Where will the fund launch take place?
The launch will take place at Princeton University, a hub for research and innovation.
What types of support will startups receive from the fund?
Startups will benefit from various support mechanisms, including tax incentives and grants aimed at encouraging innovation and business growth.
Who manages the New Jersey Innovation Evergreen Fund?
The fund is managed by the Plug and Play accelerator, which connects startups with mentors and investors.
What is the expected impact of the fund on New Jersey's innovation economy?
The fund aims to drive job creation and expand New Jersey's innovation economy by supporting early- and growth-stage AI companies.