As part of its continued effort to spur economic development in South Jersey, the Rowan University Foundation announced Sept. 13 its venture capital fund expanded to $25 million in August.

The Rowan Innovation Venture Fund (RIVF) launched in 2014 with $5 million to seed startup ideas. It has since received an additional $20 million to support evolving businesses from within and outside the Rowan University community.

Since 2015, the RIVF has seeded 14 South Jersey-based and regional startups, many of which were started by students and faculty.

“We’ve invested approximately $4.3 million since the Fund’s formation,” said RIVF Managing Director Ernest Holtzheimer. “Even if we don’t initially approve an investment, we often offer resources available through the Fund and the University to provide companies with guidance and information that can help prepare them for outside investment, whether it’s through the Fund or other investors in our network.”

The University says the Fund’s broader mission supports its key goal for economic development beyond the campus.

“At $25 million, the RIVF is among the largest venture funds from a public university in the region,” said Rowan University President Ali Houshmand. “As Rowan grows, part of our mission must be to support innovators with the ideas and ability to launch businesses, create jobs and improve our community.”

Expanding entrepreneurship

Houshmand said that the RIVF expansion coincides with a push to make Rowan more entrepreneurial, noting a partnership with Virtua Health and the upcoming launch of the Rowan University School of Veterinary Medicine – a first in New Jersey – as well as the creation of the School of Innovation & Entrepreneurship.

The RIVF has typically invested up to $500,000 in scalable companies. The increased funding makes it poised to increase the number of companies it supports, including smaller startups that need less capital to get off the ground.

Classmates Mike Lombardo and Kayvon Jahanbakhsh received early seed funding of $75,000 for their company, HALFDAY Tonics, which produces a line of healthful tea drinks that are sold in more than 1,400 U.S. retailers. “The ability to say that our university committed $75,000 gave us a lot of credibility and made an easier pitch to investors,” said Lombardo.

The classmates raised about $1 million in first-round funding.

Eric Liguori, founding head of Rowan’s School of Innovation & Entrepreneurship, said that in expanding the RIVF, Rowan is making a further commitment to the region’s economic future.

“The RIVF enables students, faculty and community members with great, scalable business ideas to get started,” said Liguori. “With $25 million, we’ll be able to fund a whole lot more.”

The RIVF is also creating a fellowship program for students to learn how venture capital funding works. That is set to begin in the spring 2023 semester and will allow students of all majors to apply, which will provide an opportunity for learners to explore entrepreneurial projects of their own.

“It’s a significant opportunity for students interested in gaining hands-on experience in innovation, entrepreneurship and investing by supporting the operations of the fund,” said Holtzheimer.

More information on the RIVF and how to apply can be found here.