Top 6 VC Firms in New Jersey Who Invest in Software Startups

New Jersey's venture capital scene includes six active firms backing software and technology startups: SOSV, Prysm Capital, and Tech Council Ventures, all independent firms headquartered in the state, alongside The Vertical Group and two major corporate venture arms, Verizon Ventures and Johnson & Johnson Innovation. Between them they cover everything from pre-seed deep tech to late-stage growth equity.

From enterprise SaaS to hardware-enabled deep tech, these investors are shaping the future of tech in the Mid-Atlantic region, several with the backing of the New Jersey investor database and the New Jersey Economic Development Authority.

However, as a fresh founder, we know you must be having questions such as:

• Which VC firm would be most interested in my startup?
• Should I pitch to VC firms with low portfolio companies or high portfolio companies?

To ease your problems, this article uncovers the list of top VC firms in New Jersey that invest in software startups.

Top 6 VC Firms in New Jersey Who Invest in Software Startups

SOSV

• Website: sosv.com
• Focused Sectors: Deep Tech, Hardware, Biotech, Fintech, Cleantech, Food Tech.
• Funding Stages: Pre-seed to Series A.
• Notable Investments: Formlabs, Memphis Meats, NotCo, Perfect Day, BitMEX.
• Total Investments: 1,000+ startups through its accelerator programs.

SOSV, founded in 1995 by Sean O'Sullivan, is a global venture capital firm headquartered in Princeton, New Jersey. Having funded over a thousand startups, the firm has expanded its presence into Cork, New York City, Newark, Pune, San Francisco, Shenzhen, and Tokyo.

SOSV operates two primary startup development programs: HAX and IndieBio.

The investors at SOSV prefer startups with strong technical teams, a clear path to commercialization, and chances for huge impact. They invest in startups ranging between $500,000 to $3M.

Prysm Capital

• Website: prysmcapital.com
• Focused Sectors: Technology, Consumer, and Healthcare.
• Funding Stages: Growth Equity
• Notable Investments: Fanatics, Island, Clear Street, Silicon Box, Polar Semiconductor.
• Total Investments: 23+ portfolio companies.

Prysm Capital is a growth equity firm headquartered in Princeton, New Jersey, that partners with disruptive technology and consumer companies.

As a growth stage investor, Prysm Capital's portfolio spans more than 20 companies to date. Since its founders, Jay Park, Muhammad Mian, and Matt Roberts, spent nearly a decade working together at BlackRock, Prysm Capital provides a lot of value to its portfolio companies aside from funding.

During the pitch interview, the investors focus on growth-stage companies within the technology sectors.

Their investments align with growth equity funding rounds, which can range from $10 million to $100 million or more, depending on the company's needs and stage of development.

Tech Council Ventures

• Website: techcouncilventures.com
• Focused Sectors: Technology, Life Sciences, and Advanced Manufacturing.
• Funding Stages: Seed and Growth Stages.
• Notable Investments: CytoSorbents, InstaMed, and IntegriChain.
• Total Investments: Over 50 companies

Tech Council Ventures is a venture capital firm based in Summit, New Jersey. The firm focuses on early-stage investments in technology companies within the Mid-Atlantic region, and operates as the venture arm of TechUnited:NJ, formerly the New Jersey Technology Council.

During the screening tests, Tech Council Ventures focuses on early-stage, rapid-growth technology companies with strong management teams and the potential to become market leaders in their respective industries.

Currently, Tech Council Ventures manages $175 million across its venture funds. They have made roughly 59 investments to date, averaging a handful of new investments annually.

Tech Council Ventures invests between $500,000 and $3 million in initial funding rounds, with the capacity to invest up to $4-5 million to support a company's growth.

The Vertical Group

• Website: vertical-group.com
• Focused Sectors: Healthcare and Medical Technology.
• Funding Stages: Growth Equity and Buyouts.
• Notable Investments: Masimo Corporation, Kyphon, Silk Road Medical.
• Total Investments: 40+ companies

The Vertical Group, established in 1988 as the successor to the venture capital division of F. Eberstadt & Co., is a venture capital firm headquartered in Basking Ridge, New Jersey, specializing in medical technology and biotechnology investments.

Having over 40 years of experience, the firm is led by General Partners Richard B. Emmitt, John E. Runnells, Jack W. Lasersohn, and Tony M. Chou. All of them are well-experienced in health tech, legal affairs, and medicine.

Discussing their investments, The Vertical Group has invested in a portfolio of more than 40 companies, focusing on early and late-stage companies in the U.S. They prioritize innovative medical technology and biotechnology companies with scalable business models showing technological innovation.

The investment range of The Vertical Group could go up to several million dollars.

Verizon Ventures

• Website: verizonventures.com
• Focused Sectors: 5G, IoT, AI, Enterprise Solutions, Media, and Entertainment.
• Funding Stages: Historically Seed to Growth Stage; new investments are currently paused.
• Notable Investments: FanDuel, TileDB, and Optibus.
• Total Investments: 180+ companies

Funding startups for over 2 decades, Verizon Ventures is the corporate venture capital arm of Verizon Communications, headquartered in Basking Ridge, New Jersey.

The firm has historically invested in early-stage companies operating in sectors such as network solutions, media, consumer, and business services, making approximately 180 investments over its history. As of this writing, Verizon Ventures has paused new investments and is focused on managing its existing portfolio, so founders should confirm current investment activity directly with the firm before pitching.

Other than investment activities, Verizon Ventures has historically participated in industry events and summits, including the Telecom Council's summit and Business Innovation Sessions (BIS) which bring together tech leaders.

Verizon Ventures has historically engaged in deals ranging from $10 million to $50 million.

Johnson & Johnson Innovation

• Website: jnjinnovation.com
• Focused Sectors: Healthcare, Life Sciences, Pharmaceuticals, Medical Devices, and Consumer Health.
• Funding Stages: Early Stage, Growth Stage, and Strategic Partnerships.
• Notable Investments: Auris Health and Cala Health.
• Total Investments: Over 120 companies globally.

JJDC (Johnson & Johnson Development Corporation) is the corporate venture capital arm of Johnson & Johnson, headquartered in New Brunswick, New Jersey.

Investing since the 1970s, JJDC focuses on transformative health-tech startups. They have a strict investment strategy, targeting companies that align with Johnson & Johnson's mission to address critical healthcare needs.

The investors fund businesses that have experienced leaders and are capable of delivering innovative solutions to patients worldwide. Once selected, JJDC invests across different stages of development, from seed funding to later-stage investments.

FAQs: New Jersey VC Firms and Software Startups

Wrap-Up: Our 2 Cents!

So, before we wrap it all up, here's an insider secret to change your perspective about startup investors.

Investors know that your idea will evolve, pivot, or even fail in its initial form, but what won't change is your ability to adapt and execute.

So, shift your focus. Instead of pitching just the product, sell your vision, highlight your unique insights into the problem, and demonstrate your team's ability to outthink and outwork competitors.

Plus, don't just drown in those graph charts. Investors love metrics, but they care more about the story those metrics tell.

Since several of these firms focus on software and enterprise technology specifically, it's worth checking the broader pool of software investors and venture capital firms in AngelMatch's database, and lining up a strong deck before you reach out using the pitch deck database for reference.