Senator Launches Innovation Fund to Boost Job Creation

In a strategic move to stimulate economic growth and foster job creation, the New Jersey Innovation Evergreen Fund (NJIEF) has announced a $6.2 million investment in three promising startups. The initiative aims to drive innovation across the state, focusing on sectors like cleantech, digital health, and artificial intelligence (AI).

Investments Target Key Sectors

The NJIEF, launched in 2022, is designed to increase access to venture capital in New Jersey, a state that has traditionally faced a lack of venture capitalists. This fund is custom-built to fuel job creation and economic development within the region. The current investment includes three startups: PolyGone Systems, JOGO Health, and Hill Research.

PolyGone Systems, co-founded by Nathanial Banks and Yidian Lie in 2021, received a $1.25 million investment. This funding enabled the company to expand its team to ten employees and establish a new lab space. Notably, PolyGone launched the first industrial microplastic treatment pilot, marking a significant step in cleantech innovation.

JOGO Health, which specializes in treating chronic pain and neuromuscular disorders, secured a total of $3.18 million in investments. Meanwhile, Hill Research, an AI startup that relocated from Boston to Bridgewater, received $1.75 million. Hill Research focuses on generative AI, which accelerates clinical trials for pharmaceutical companies.

Strengthening New Jersey's Economy

The NJIEF plays a crucial role in strengthening New Jersey's economy by supporting startups, particularly those led by minorities and women. This initiative not only aims to boost local job creation but also to enhance the state’s innovation economy. The collaborative relationship with the New Jersey Economic Development Authority (NJEDA) further amplifies the fund's impact on job growth.

The NJIEF’s strategic investments are part of a broader plan to enhance New Jersey's infrastructure for innovation. This includes a $49 million plasma lab planned for Princeton and a life sciences incubator at HELIX NJ. Additionally, new medtech innovation centers are in the works for South Jersey.

Venture Capital Trends and Challenges

While New Jersey is making strides with its innovation fund, the broader venture capital landscape presents challenges. San Diego startups, for instance, raised $590 million in the third quarter of 2025, marking a 60% drop compared to the previous year. This represents the smallest quarterly investment total in eight years, with only 48 venture capital deals, the lowest count in seven years. Market hesitancy and difficulties in raising early-stage and growth capital are contributing to this decline.

Despite these challenges, AI investment remains concentrated in established tech hubs like the Bay Area. Nationally, tech IPOs are boosting market confidence, and mergers and acquisitions (M&A) activity is rebounding. Noteworthy deals include Crystalys Therapeutics' $205 million Series A funding and Firestorm Labs' $47 million Series A funding. Founded in 2022, Firestorm Labs focuses on defense technology, highlighting how AI investment aligns with geopolitical and national security priorities.

Future Outlook

Startups continue to be a driving force for job creation and economic growth in the U.S. The NJIEF's efforts in New Jersey exemplify how targeted investments can catalyze innovation and job creation, even amid broader market challenges. As New Jersey and other states enhance their support for startups, the potential for economic development and technological advancement remains substantial.

The NJIEF's strategy underscores the importance of fostering innovation at the state level to overcome venture capital shortages and drive economic growth.