The New Jersey Technology Council (NJTC) crowned the “Best in Show” at its 2008 New Jersey Venture Conference, held on March 28 at The Palace at Somerset Park in Somerset. Winners were announced after a daylong conference that brought together emerging companies in the life sciences, IT, energy/environment and communications sectors and investors. The New Jersey Economic Development Authority (EDA) assisted many of the awardees, including NeuroTrax Corporation, Agilence, Inc. and Switch2Health Corp.

Honored by NJTC as the “Company Most Likely to Succeed,” NeuroTrax is a medical technology company that designs, develops and markets diagnostic tools for the neurological healthcare market. In December 2007, EDA closed a $250,000 Edison Innovation Fund investment to support the commercialization of the Newark-based company’s diagnostic products and for working capital.

Agilence, Inc., the leading provider of Event-based Video Analytics (eVA), was named by NJTC as the “Best Communications/Electronics Company.” In September 2007, EDA closed a $1 million Edison Innovation Fund investment to help the company’s continued product development and resource expansion, including new offices at the EDA’s Waterfront Technology Center at Camden and the creation of approximately 27 new jobs. In addition to the Edison Innovation Fund investment, Agilence received nearly $40,000 through the Economic Recovery Board for Camden’s (ERB’s) 5-4-3-2-1 Business Lease Incentive Grant program, which provides rental rebates to commercial tenants in the City of Camden. In June 2007, Agilence announced that it closed an investment round with NextStage Capital as the lead investor. NextStage Capital, an early-stage venture capital fund focused on Mid-Atlantic technology companies, is supported by a $400,000 investment from the EDA.

Named “Most Innovative Product/Service” by NJTC, Switch2Health is located in the Commercialization Center for Innovative Technologies (CCIT), which is part of the EDA’s Technology Centre of New Jersey in North Brunswick and located within the Greater New Brunswick Edison Innovation Zone. In 2007, the New Jersey Commission on Science and Technology (CST) awarded Switch2Health a $50,000 Incubator Seed Fund Grant through the Edison Innovation Fund. This grant program is designed to accelerate the business development process by helping emerging companies achieve a critical milestone in their commercialization path.

The Edison Innovation Fund, a key element of Governor Jon S. Corzine’s Economic Growth Strategy, was created to support technology and life sciences companies throughout their discovery, development and commercialization stages. The EDA, in consultation with the New Jersey Commission on Higher Education and CST, is responsible for managing the Edison Innovation Fund. Since the launch of the Fund in October 2006, New Jersey has delivered nearly $245 million in financing assistance, business incentives and tax credits to early-stage and established technology and life sciences businesses. In addition, over $425 million in total project costs has been leveraged by Edison Innovation Fund investments.

The 2008 NJTC Venture Conference drew a crowd of more than 500 entrepreneurs and investors, and nearly 60 exhibiting companies from various sectors. In addition to the award winners, exhibiting companies that received assistance through the Edison Innovation Fund include, Dynamic Mobile Data Systems, Inc., a Franklin Township-based technology company, Germgard Lighting LLC, a biomedical technology company located at CST’s innovation incubator in Dover, and Orthobond Corporation, a medical device company located in Monmouth Junction.

One of the conferences returning exhibiting companies, Treadstone Technologies, received venture funding as a direct result, they said, of their participation in the 2007 NJTC Venture Conference. The company, a leading innovator of pivotal technologies for the hydrogen economy, was awarded a $500,000 grant through the Edison Innovation R&D Fund and the CST in February 2008. The Edison Innovation award will support further development of TreadStone’s LiteCell technology that delivers lighter, high performance, lower cost fuel cell stacks. In addition CST awarded TreadStone a $75,000 Technology Fellowship grant to support TreadStone’s LiteCell technology and the company’s HydroOSP, a one-step hydrogen processing system.

“We were so pleased to note that this year’s conference attracted almost 60 exhibiting companies from the region, with over 75% from our very own state of New Jersey,” said Maxine Ballen, president and CEO of the NJTC. “We believe that the increase in New Jersey companies only serves to reinforce our feeling that the pipeline of new entrepreneurial companies in New Jersey is quite vibrant and becoming more robust every day.”

Trenton, N.J. (April 1, 2008) – The New Jersey Economic Development Authority (EDA) has closed a $1-million Edison Innovation Fund investment to assist New Providence-based Elanti Systems, Inc., a leading innovator of service management and intelligent routing software solutions, which are marketed to global telecommunications companies. The Edison Innovation Fund, a key element of Governor Jon S. Corzine’s Economic Growth Strategy, was created to support technology and life sciences companies throughout their discovery, development and commercialization stages.

“Elanti Systems has shown the strength, vision and tenacity to succeed in today’s very competitive technology environment,” said EDA Chief Executive Officer Caren S. Franzini. “Investing in New Jersey’s technology-based companies will not only create high-wage, high-skilled jobs, but will also strengthen the state’s overall economy. Governor Corzine created the Edison Innovation Fund to attract and retain technology and life sciences companies, and attracting a company like Elanti further enhances our reputation and leadership in the technology industry.”

The EDA, in consultation with the New Jersey Commission on Higher Education and the New Jersey Commission on Science and Technology (CST), is responsible for managing the Edison Innovation Fund. The fund will leverage $350 million in private capital that will be targeted to emerging companies as well as existing mid-sized and large technology and life science businesses.

Elanti Systems, Inc. offers service providers management solutions that focus on service visualization and assurance for IP Virtual Private Networks, and optimization for IP Networks. The company provides its customers essential management and control capabilities and the ability to optimize and utilize IP infrastructure related to its services, thereby offering service guarantees instead of service level agreements. The $1million in financing from the EDA will enable Elanti to create 38 new jobs in New Jersey over the next two years.

“New Jersey EDA’s commitment to innovative technology and Elanti Systems enables us to continue to grow and meet the needs of service providers around the world. Elanti’s growth will ensure new jobs for New Jersey. We are thrilled with the EDA’s vision in identifying and supporting Elanti Systems and look forward to a long and healthy relationship with the state of New Jersey ” said Elanti Systems, Inc. CEO Michael Jaschke.

The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and entrepreneurial training, and real estate development activities.

For information on the Edison Innovation Fund and to learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov.

About Elanti Systems, Inc.
Elanti Systems delivers competitive advantage to service providers by helping them truly focus on, and exceed their business customers’ needs and expectations. This greatly enhances revenue streams, customer loyalty and reduces operational and capital expenditures. Elanti enables service providers and their customers to control, manage and visualize their IP VPN based services end-to-end and meet Service Level Agreements. Elanti also allows service providers to significantly increase the utilization of their network infrastructure by dynamically optimizing IP network traffic enabling the saving of millions more in capital and operational expenditure while also ensuring quality of service for end customers.

For more information please visit www.elantisystems.com

Nistica also reports $1 million investment from N.J. Economic Development Authority

Princeton, N.J. (February 25, 2008) – Battelle Ventures, LP, and its affiliate fund, Innovation Valley Partners (IVP), have led the $9-million Series B funding round of Nistica, Inc., a global supplier of agile optical modules that simplify, automate and make affordable the delivery of high-bandwidth applications.

“Nistica differentiates itself from others in the agile optical networking (AON) field by being able to combine low cost with high performance, enabling systems providers across multiple industries to meet broadband demand for the ever-increasing ‘triple play’ of market applications in voice, video and data,” said Battelle Ventures/IVP General Partner Ralph Taylor-Smith. “Others who are in the triple-play supply chain simply haven’t succeeded on the low-cost front.”

The company’s patented FLEDGE technology platform, on which its initial suite of Telcordia-qualified products is based, he said, enables edge networks to scale at healthy margins through agile optical modules. “Cost-effective optical switching between the network core and the access infrastructure is the key to meeting the high-bandwidth delivery requirements of gigabit Ethernet, video on demand (VOD), and broadband digital multimedia services,” Taylor-Smith continued.

“We were first to market with a new class of lean, agile optical modules to automate the edge and metro core of service-provider networks,” said Ashish Vengsarkar, Nistica CEO, noting that today the company also separately announced its fourth product offering, with the introduction of FULL FLEDGE to meet growing demand for cost-effective Reconfigurable Optical Add/Drop Modules (ROADMs) in core network nodes.

“Our FLEDGE modules deliver high optical performance at up to 80% lower first costs over comparable products deployed in core networks,” continued Vengsarkar, a serial entrepreneur, creator and evangelist of first-generation ROADM systems. “FLEDGE modules unlock stranded bandwidth and enable dynamic provisioning and wavelength management at a fraction of traditional ROADM costs,” he said.

Vengsarkar said that Series A participants Novitas Capital (formerly PA Early Stage Partners), Technology Venture Partners and private investors joined the round, as did new, strategic investor Finisar Corporation [NASDAQ: FNSR], a leader in fiber-optic solutions for high-speed networks, with which Nistica separately announced a partnership today.

He also reported that the three-year-old Bridgewater, N.J.-based company had received a $1-million Edison Innovation Fund investment from the New Jersey Economic Development Authority, for a total post-Series A capital infusion of $10 million.

“We made this investment for a couple of reasons,” said Taylor-Smith. “First is the winning combination of technology, talent and timing. The company has developed substantial in-house intellectual property; the management team has deep, direct experience; and the market is primed for the emergence of an agile optical module vendor with disruptive cost models.

“Equally important, Nistica has its own ‘triple play of customer applications’ in the marketplace,” continued Taylor-Smith. “Not only does the company help solve commercial broadband carriers’ bandwidth problems, but it can also meet the growing need for compact optical instrumentation in the test & measurement industrial sector, as well as address photonic applications in the defense and government security sectors,” he explained.

Taylor-Smith joins the company’s Board of Directors, chaired by William Cadogan, former chairman and CEO of ADC Telecommunications and investor in Nistica. Other Board members, in addition to CEO Vengsarkar, are: Novitas Managing Director Michael Bolton; Technology Venture Partners Managing General Partner Bryson Hollimon; and company founder and CTO Thomas Strasser.

Since the $5.2-million Series A round in 2006, said Vengsarkar, the company “has significantly expanded in global markets, with a strategic partnership with Fujikura, Ltd., and has more than a dozen customers worldwide.” The current round, he said, will enable the company to scale production, introduce products and expand customer support.

About Battelle Ventures and Innovation Valley Partners

Battelle Ventures, L.P., a Princeton, N.J.-based venture fund, and its Knoxville, Tenn.-based affiliate fund, Innovation Valley Partners (IVP), have a combined $255 million under management for creating and accelerating the development of early-stage technology companies with breakthrough solutions to multiple marketplace problems. The funds enjoy unique relationships with the technology transfer offices of six U.S. Department of Energy (DOE) National Laboratories and have established similar associations with a number of university tech transfer and commercialization departments. Battelle Ventures was established in August 2003 with a sole limited partner – Columbus, Ohio-based Battelle Memorial Institute (Battelle), the world’s largest nonprofit independent research and development organization. Battelle manages/co-manages six National Laboratories for the U.S. DOE. IVP, launched in August 2005, is backed by Eastern Tennessee business leaders and works closely with regional research and entrepreneurial communities, giving the funds a strong presence in the Southeast. The $220-million Battelle Ventures fund and the $35-million IVP fund invest side by side in all deals. For information about the funds’ joint portfolio, go to www.battelleventures.com. To learn more about Nistica, go to www.nistica.com.

Trenton, N.J. (February 12, 2008) – The New Jersey Economic Development Authority (EDA) has developed a new product – Urban Plus – that provides up to $3 million for projects in nine key urban centers of the state. The product supports Governor Jon S. Corzine’s strategic economic development focus on these cities.

Urban Plus satisfies a need for financing medium-size projects in the targeted municipalities of Atlantic City, Camden, East Orange, Elizabeth, Jersey City, Newark, New Brunswick, Paterson and Trenton.

“This new product reinforces state support for re-energizing our cities, enhancing the viability of projects in these targeted urban areas and expanding the resources available under the New Jersey Urban Fund,” said EDA Chief Executive Officer Caren S. Franzini.

Urban Plus loans can be made for as long as 10 years with up to a 25-year amortization and be used for fixed assets like buildings and equipment. Loans can fund up to 50 percent of total project costs and must have the support of the municipality. Projects must create or maintain jobs, increase ratables or leverage public financing by a ratio of 1:1. The interest rate will be set at 50 percent of the Federal Reserve Discount Rate at the time of closing, with a floor of 3 percent.

The creation of this new product complements other EDA-administered programs, including the Local Development Financing Fund, which is utilized in urban centers and provides up to $2 million in financing, and the Fund for Community Economic Development, which provides a maximum of $750,000 for community development projects in urban areas.

To learn more about Urban Plus or other products and services of the EDA, contact EDA Customer Care at CustomerCare@njeda.com or (609) 777-4898. For more information about doing business in New Jersey, visit www.NewJerseyBusiness.gov or call (866) 534-7789.

The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and entrepreneurial training, and real estate development activities.

Trenton, N.J. (January 29, 2008) – Credit-worthy companies operating in the state for at least one year may now be eligible for low-interest, fixed-asset financing up to $300,000 through a new product unveiled by the New Jersey Economic Development Authority (EDA). Loan approvals will be based partially on guarantor credit scores and the product will be promoted largely through the EDA’s strong partnership with New Jersey banks.

The new financing program, called FastStart for small business, supports Governor Jon S. Corzine’s Economic Growth Strategy to nurture the growth of small businesses, particularly those owned by women and minorities. Loans and guarantees available with this product are intended to meet real estate or equipment needs.

“Banks have been using credit scores for many years to approve loans under certain dollar thresholds as an efficient way to handle smaller requests while preserving acceptable risk standards,” said EDA Chief Executive Officer Caren S. Franzini. “We have now chosen to follow suit and introduce this new program into our product portfolio to enhance the resources available to support small business growth in New Jersey.”

Other underwriting criteria will also be used to evaluate loan applications, such as the applicant’s financial history, lien positions and real estate market value. Prospective borrowers will also benefit from an expedited review and approval process that can shorten the time between application and closing.

Borrowers of low-interest EDA funding under this program have the option of choosing a fixed rate indexed to the five-year Treasury rate or a variable rate indexed to the Prime Rate. It is anticipated that many of the borrowers for this product will work with their existing banks to enhance their current lending relationship.

The creation of this new product complements action taken by the EDA last fall when it approved significant changes to increase exposure on its existing direct loan and guarantee programs. Maximum limits were raised to $1.25 million for fixed asset loans and $750,000 for working capital loans as well as to $1.5 million for both fixed asset loan and working capital loan guarantees.

Previous limits were $750,000 and $500,000 for fixed asset and working capital loans, respectively, and $1 million for guarantees. The EDA said its decision to increase its loan and guarantee limits would enable it to be a more meaningful partner to the banking community in financing transactions and help more businesses grow, leading to the creation of more jobs.

To learn more about the FastStart for small business product or other programs and services of the EDA, contact EDA Customer Care at CustomerCare@njeda.com or (609) 777-4898, or contact a local bank representative. For more information about doing business in New Jersey, visit www.NewJerseyBusiness.gov or call (866) 534-7789.

The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and entrepreneurial training, and real estate development activities.

Trenton, N.J. (January 22, 2008) – The National Business Incubation Association (NBIA) has awarded the Soft Landings International Incubator designation to the Commercialization Center for Innovative Technologies (CCIT), part of the New Jersey Economic Development Authority’s (EDA’s) Technology Centre of New Jersey in North Brunswick. CCIT focuses on life sciences and biotechnology startups and is the first of New Jersey’s incubators to receive this designation, which recognizes incubators that have demonstrated success in helping non-domestic firms enter the U.S. market.

“NBIA has helped ensure the success of many companies around the globe, and it’s an honor for CCIT to receive the Soft Landings designation,” said EDA Chief Executive Officer Caren Franzini. “Governor Corzine’s Economic Growth Strategy has made international business development a priority, and it’s great news for the state that we have been able to successfully attract foreign startup biotechnology businesses and help them grow and invest in New Jersey.”

The Soft Landings designation recognizes an incubator’s focus on welcoming non-domestic firms into its domestic market with translation services, help cutting through governmental red tape, access to capital, domestic market research and other programs, said Randy Morris, NBIA director of membership.

A panel of experienced NBIA-member incubator managers evaluated the Soft Landings applications. According to Morris, the judges were impressed with CCIT’s unique support for non-domestic firms.

“CCIT accentuates its standard incubation services with assistance tailored specifically to non-domestic firms, including language and international business training through Kean University, and a ‘global bioscience incubator/science park network,’ which provides businesses with access to experts around the globe,” Morris said.

CCIT originally opened in 2002 with 20,000 square feet and was expanded in 2005 to 50,000 square feet with the addition of 10 wet labs, business accelerator office space and flexible conference facilities. Businesses located in CCIT have access to common services such as conference rooms, a media room, reception, shipping and receiving areas, video conferencing, and an autoclave.

A Strategic Partner Advantage Network of professionals also makes available discounted services to tenant companies covering such essential areas as accounting, clinical development and regulatory compliance, human resources, insurance, law and marketing. Business development and collaborative opportunities are provided through a “corporate technology transfer” initiative unique to CCIT and working relationships with over a dozen global bioscience research parks and incubators.

There are currently 20 companies that have space at CCIT, which is part of the larger Technology Centre of New Jersey and located within the Greater New Brunswick Edison Innovation Zone along the Route 1 R&D corridor between Rutgers and Princeton universities. Prominent CCIT tenants include Chromocell Corporation, MaxyBio Corporation, Rosetta Genomics and Orthocon.

NBIA’s Soft Landings designations are effective for two years; programs must reapply biennially for continuing designation. There is no cap on the number of designations available in a given year or over time. CCIT is one of only 10 business incubation programs from around the world that have earned the designation since NBIA began the program in 2005. During the latest round, the panel awarded the Soft Landings designation to CCIT for the first time while ATP Innovations of Sydney, Australia, and Wallonia Space Logistics of Liege, Belgium, earned their first renewal of the designation.

NBIA is the world’s leading organization advancing business incubation and entrepreneurship. For more information about the NBIA Soft Landings program, visit http://www.nbia.org/resource center/soft landings/index.php.

The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and entrepreneurial training, and real estate development activities.

To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov.

Trenton, N.J. (January 16, 2008) – The New Jersey Economic Development Authority (EDA) has finalized a limited partnership investment in NewSpring Health Capital II, L.P., a diversified healthcare equity fund managed by NewSpring Capital that will invest in companies in the life sciences, medical devices and healthcare services fields. The investment was made under the state’s Edison Innovation Fund, which was created to support technology and life sciences companies throughout their discovery, development and commercialization stages and is a key element of Governor Jon S. Corzine’s Economic Growth Strategy.

“New Jersey has a rich history of scientific innovation, and the limited partnership investment in NewSpring Health will help to further encourage the location and growth of life sciences businesses and jobs in the state,” said EDA Chief Executive Officer Caren S. Franzini. “This venture fund investment will expand the critical capital resources of emerging businesses, as well as assist in the development of a New Jersey-based venture network.”

Formed in 1999, NewSpring Capital has grown from a single fund to a “family” of dedicated funds comprising more than $500 million of capital under management today. The general partners of the Fund will use the same investment strategy employed in their successful predecessor fund, which, in addition to its strong investment performance, led to a very substantial increase in total employment for the companies located in New Jersey.

Zev S. Scherl, a General Partner of NewSpring Capital who is based in the firm’s Short Hills, New Jersey office stated, “NewSpring Capital is very pleased to continue to finance the promising healthcare companies in New Jersey. The supply of local investment opportunities remains strong, and we are committed to focusing on growing and building outstanding local life sciences and healthcare companies that deliver superior investment returns. We are particularly appreciative of the EDA’s confidence and look forward to implementing the strategy that will meet the State’s investment goals.”

EDA Director of Technology and Life Sciences, Kathleen Coviello said, “Our decision to make this investment is based on NewSpring Capital’s extensive experience and strong success with prior funds.”

Coviello added that there will be a minimum requirement for 2:1 matching for the EDA’s commitment, tripling the investment dollars available to New Jersey companies.

The EDA, in consultation with the New Jersey Commission on Higher Education and the New Jersey Commission on Science and Technology, is responsible for managing the Edison Innovation Fund. In January 2007, EDA approved targeted investments of approximately $20 million in venture funds commitments to advance the Fund.

The EDA’s latest investment in NewSpring Health Capital II complements its other venture fund investments, including NextStage Capital, L.P., the Edison VI Venture Fund, Quaker BioVentures, which manages the Garden State Life Sciences Venture Fund, and the New Jersey Technology Council Venture Capital Fund. To date, the EDA has committed over $30 million in venture capital funds, which has resulted in more than $90 million being invested in New Jersey companies based on the 2:1 matching requirement.

The EDA is an independent, self-sustaining state financing and development agency that works to promote economic growth, job creation and the revitalization of New Jersey’s communities with financing assistance, technical support and entrepreneurial training, and real estate development activities.

For information on the Edison Innovation Fund and to learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov.

For information on NewSpring Capital, visit the Firm’s website at www.newspringcapital.com.