New Jersey Innovation Fellows Program

The New Jersey Innovation Fellows Program is administered by the New Jersey Economic Development Authority. The program was established under the New Jersey Economic Recovery Act framework following Assembly Bill No. 5939, and the NJEDA Board approved the program on November 16, 2022. The program uses a legislative appropriation to support teams of entrepreneurs during the early ideation and formation period of new ventures. Its purpose is to give entrepreneurs the security of income-replacement funding while they leave existing employment or ventures and devote themselves to developing promising startups in New Jersey. The program is also intended to expand New Jersey's entrepreneur base and innovation economy, address market gaps affecting underserved and under-resourced entrepreneurs, and support the formation and growth of new ventures. Approved Innovation Fellows teams qualify for a base grant of $200,000 during a two-year incubation period. Teams may qualify for bonuses that increase the total potential award to $400,000. A team may receive a $50,000 bonus if one identified entrepreneur resides in a designated New Jersey Opportunity Zone at the time of application. A team may also receive $50,000 for each qualifying entrepreneur leader, up to three such bonuses totaling $150,000, based on New Jersey college or university graduation or diverse entrepreneur qualification. New Jersey college or university includes two-year and four-year colleges. The full award is disbursed quarterly over two years, subject to milestones and continued compliance. Funds must be used for income replacement. Minimum ongoing disbursement requirements include an organizational chart, quarterly management-prepared financial statements, annual accountant-prepared financial statements, gross-income-tax withholding verification, certification that at least three entrepreneurs are managing the business, mentorship attendance records, and a current business address. An applicant is the business idea or venture pursued by the entrepreneur team and must consist of at least three full-time entrepreneurs leading the proposed venture. At least 50 percent of the entrepreneur leadership must qualify as first-time entrepreneurs. The leadership team must hold a majority equity interest of more than 50 percent in the applicant. The venture must operate within New Jersey's Targeted Industries and must have a registered commercial or residential address in one of the program's specifically identified eligible New Jersey municipalities. The venture must be registered with the State within 30 days of the award notice in order to close on the grant and must provide a valid business registration and current tax clearance certificate for the newly formed business. Entrepreneurs receiving income from the award must have paid gross-income tax to New Jersey at the time of application or within the 60 days leading up to application. First-time entrepreneurs must be leaving current employment or a venture no more than 60 days before the application date and must certify that they have never been listed as a founder, co-founder, or owner of a New Jersey targeted-industry business entity that received professional angel, institutional venture capital, or private equity funding. Entrepreneur leadership must commit to the venture full time for two years following receipt of the fellowship grant. Full time is defined as 35 hours per week, and leadership may not engage in part-time or outside work for more than 20 hours per week. Grant recipients must continue paying New Jersey gross-income tax throughout the two-year program and must participate in the required mentorship program. Applicants subject to the stated New Jersey cannabis licensing or certification prohibition are ineligible for the program. The application must include a complete and well-written business plan for the proposed venture in a presentation format similar to the sample template identified by NJEDA. Applications for Cohort III open September 9, 2026, at 10:00 AM EST and must be submitted by December 4, 2026, at 5:00 PM EST. NJEDA also identifies a 14-business-day question-and-answer period beginning August 19, 2026, at 10:00 AM EST and ending September 9, 2026, at 5:00 PM EST. The source does not identify a letter of intent, concept paper, pre-proposal, or other application-stage gating deadline. NJEDA charges a $250 application fee. The provided material references a scoring rubric among the program resources but does not provide the scoring criteria themselves or state an award-notification date. The program provides mentorship, technical training, advisory support, access to other local founders, office space, and connections to investors in addition to income-replacement capital. Award disbursements occur quarterly over the two years immediately following award and remain subject to the program's compliance milestones. Funding available as of the second quarter of 2026 is stated as $2,500,000, while the program description separately identifies a $10 million legislative appropriation supporting the broader program. The source does not state that application rounds recur annually or on another fixed schedule. Questions may be directed to CustomerCare@njeda.com or to NJEDA by phone at (844) 965-1125.

Demonstrate that the proposed venture fits a New Jersey Targeted Industry and has an address in an eligible municipality; provide a complete and well-written business plan; ensure the team has at least three full-time entrepreneur leaders and at least 50 percent qualify as first-time entrepreneurs; document New Jersey gross-income-tax eligibility; substantiate Opportunity Zone, diverse entrepreneur, or New Jersey college or university status when seeking applicable bonuses.