TRENTON, N.J. (November 17, 2017) – The New Jersey Economic Development Authority (EDA) was honored last night with the Distinguished State Development Finance Agency Award at the Council of Development Finance Agencies (CDFA) National Summit. The CDFA is a national association dedicated to the advancement of development finance concerns and interests, and its annual awards program recognizes excellence in the use of financing tools for economic development, as well as the individuals who champion these efforts. 

According to the CDFA, the Distinguished State Development Finance Agency Award is bestowed on an agency that has tackled particularly complex and challenging financing concerns, revolutionized financing tools or affected the development finance markets. 

“We are thankful for the important role the CDFA plays in the development finance industry, and we are honored to be recognized for our work advancing economic development in the State of New Jersey,” said EDA Senior Vice President Maureen Hassett, who also serves as Vice Chair of the CDFA Board.  “Over our 40-year history, the EDA has focused on identifying creative solutions and forming strong partnerships with the public, private and not-for-profit sectors to broaden New Jersey’s economic base and we look forward to continuing our work to help build vibrant communities and create new job opportunities for residents.” 

The EDA was statutorily created in 1974 and commenced operations with a $200,000 start-up loan from the New Jersey Department of Treasury. Its initial purpose was helping New Jersey companies take advantage of the federally authorized tax-exempt bond program. Over the past four decades, the role of the EDA has continued to expand.  Today, the EDA offers a portfolio of programs and initiatives designed to support business growth and spur job creation and capital investment.  From low-cost loans that increase access to capital for small businesses to seed funding for technology and life sciences companies, the EDA develops programs and adapts existing ones in response to State policies, economic trends and needs in the marketplace.

To learn more about EDA resources, visit www.njeda.gov or call 609-858-6767, and follow @NJEDAWasHere and @NJEDATech on Twitter and LinkedIn.

  

Event Features Competition, Networking for Technology and Life Sciences Entrepreneurs

TRENTON (November 16, 2017) –  An upcoming event designed to connect New Jersey entrepreneurs directly with investors will feature a panel of experts sharing trials, successes, and lessons learned along the path of growing startup technology and life sciences companies. Hosted by the New Jersey Economic Development Authority (EDA), New Jersey Founders and Funders All-Stars will be held on December 6, 2017 at the newly-completed 32,600-square-foot Biotechnology Development Center on the Technology Centre of New Jersey campus in North Brunswick.

The panel, entitled Navigating the Fundraising Trail, will shed light on the trials, successes and wisdom of four New Jersey entrepreneurs, leveraging their insights on fundraising, maximizing investor relationships, and the path to exit, based on their unique experiences managing and growing startup companies in the State.   Each panelist has been in the shoes of the Founders participating in the event and has successfully raised capital, managed deal terms, dilution, and board expectations.   

Featured panelists will include:

Fred Dirla, CEO, Austere Solutions – Dirla, a serial entrepreneur, is now CEO of Austere Solutions, which focuses on interim executive positions, as well as advisory and consultative services. Dirla’s most recent exit was FieldView Solutions, where he was the CEO & Founder of the venture-backed enterprise software company. FieldView Solutions was the first company to receive financing through New Jersey’s Edison Innovation Green Growth Fund when it closed on a $1 million growth capital loan from the EDA in 2012. 

Rick Kushel, CEO, DealCloud –  Kushel is a three-time founder member of entrepreneurial businesses, and is now at DealCloud, which was founded in 2010 to provide Customer Relationship Management, deal management and business development software for principal investing and M&A advisory professionals.  Previously, Kushel was a strategic advisor to the innovations portfolio at The Blackstone Group, which he joined in 2007 to become CEO of a technology spinout which became iLevel Solutions. Prior to Blackstone, Kushel was Chairman and CEO of Archive Systems, Inc., a leading on-demand document management company he founded in 1991. Archive Systems was approved by the EDA in 2007 for a $1 million investment through the Edison Innovation Fund to help the company develop state-of-the-art digital infrastructure. Under Kushel’s leadership, Archive Systems achieved 14 years of double-digit revenue growth, grew to 250 employees and raised over $20M in venture capital from the Carlyle Group, and the EDA-supported Edison Ventures and NJTC venture funds. An active angel investor, Kushel served on Archive System’s board until its recent sale to Access Information Management. 

Dennis O’Dowd, Partner, Crosswalk Ventures – O’Dowd has over 20 years of business experience in private equity financing and mergers and acquisitions.  O’Dowd recently co-founded Crosswalk Ventures, a fund dedicated to investing in the healthcare and life sciences industry.  Prior to Crosswalk, O’Dowd was a principal at Ivy Capital Partners Management, LLC, which managed two orthopedic-focused venture funds with over 20 investments, spanning start-ups through public company rounds.   O’Dowd served on several Boards at Ivy’s portfolio companies, including IvyRehab Network, Inc. (acquired by a private equity fund) and Ivy Sports Medicine, LLC (acquired by Stryker, Corp.) Additionally, O’Dowd served as CFO to Ivy Sports Medicine, LLC where he secured multiple financing rounds, including a successful partnership with the NJEDA, and ultimately led the sale process to Stryker.  Prior to joining Ivy, O’Dowd was a principal at Grumman Hill Group, LLC, a generalist private equity fund, and spent two years each at Salomon Smith Barney in the Mergers and Acquisitions group, and at Price Waterhouse, LLP in the Corporate Finance division.  

Dr. Ashish Vengsarkar, Ph.D., CEO, Nistica – Dr. Vengsarkar founded Nistica, a leading supplier of optical subsystems that power telecommunications networks, in 2005. Shortly thereafter, Nistica received a $1-million Edison Innovation Fund investment from the EDA. Batelle Ventures was also an investor in Nistica, which was acquired by Fujikura in 2012, but has continued to operate as a Fujikura subsidiary.  After beginning his career at Bell Laboratories in Murray Hill in 1991, Vengsarkar went on to launch his first telecommunications start-up, Photuris, in 2000. Throughout his entrepreneurial career, he has raised over $150 million in venture capital funding, has structured numerous strategic partnerships with international corporations, and has served on Boards of numerous start-ups and mentored many young entrepreneurs.

New Jersey Founders and Funders is a bi-annual event hosted by EDA that connects early-stage New Jersey technology and life sciences businesses with investors through 10-minute, one-on-one, “speed dating” sessions to discuss strategy, business models, and funding opportunities. These discussions help early-stage companies gain critical insight on how best to position their startups within the Garden State’s vibrant technology ecosystem. 

In this special “All-Stars” version of New Jersey Founders & Funders, returning companies will participate in a pitch competition for a $50,000 award, the winner of which will be voted on by the audience. 

“The New Jersey Founders and Funders All-Stars event will be valuable to participating entrepreneurs on a number of levels,” EDA Chief Executive Officer Melissa Orsen said. “In addition to the monetary award that will be available to past New Jersey Founders and Funders participants, all attendees can learn from the experience of both investors and seasoned entrepreneurs.” 

In addition to the one-on-one investor meetings and the panel, there will be ample networking opportunities for entrepreneurs, investors and other community stakeholders. Returning companies, other entrepreneurs, investors, and industry partners may register until November 27 at https://application.njeda.com/tls.

To stimulate the growth of New Jersey’s innovation economy and drive commercialization of pioneering technology within the state, the EDA offers a continuum of assistance specifically designed to help technology and biotechnology companies at every stage of development. From networking and mentoring opportunities, to financial assistance, hundreds of entrepreneurs, emerging businesses and established companies benefit from EDA support each year. Examples of this support include the New Jersey Angel Investor Tax Credit Program, State’s Technology Business Tax Certificate Transfer (NOL) Program and resources available through CCIT.

To learn about the various programs available to support the technology industry, visit www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.

TRENTON (November 6, 2017) – Continuing efforts to foster the growth of the State’s burgeoning technology industry, the New Jersey Economic Development Authority (EDA) announced today that 39 companies have been approved to share over $46 million through New Jersey’s Technology Business Tax Certificate Transfer (NOL) Program. 
 
Administered by EDA and the New Jersey Department of Treasury's Division of Taxation, this competitive program enables qualified, unprofitable technology and biotechnology companies to sell net operating losses and/or research and development tax credits to raise cash to finance their growth and operations. The program provides a critical source of funding for emerging companies during a stage when non-dilutive growth capital is difficult to obtain.
 
“For nearly 20 years, the NOL program has been cited by entrepreneurs as a key factor in the growth of their companies,” EDA Chief Executive Officer Melissa Orsen said. “The working capital the NOL program provides helps emerging companies add key staff or accelerate research and development efforts, spurring the continued growth of New Jersey’s technology industry.”
 
Since the program was established in 1999, more than 525 businesses have been approved for awards totaling over $950 million. Showcasing the EDA’s broad-based support of this critical sector, several companies have also benefited from other resources offered by the State. This includes the Angel Investor Tax Credit Program, which provides tax credits for angel investments made into New Jersey emerging technology businesses; New Jersey Founders and Funders – a semi-annual event that matches emerging companies with potential investors; and, affordable lab space at EDA’s Commercialization Center for Innovative Technologies (CCIT) life sciences incubator in North Brunswick. 
 
Participating in the NOL program for the second consecutive year is Bergen County-based Acuitive Technologies, Inc. (ATI) which was founded in 2013 with the mission of pursuing material technologies to improve medical device performance and patient outcomes. Headquartered in Allendale, ATI’s focused approach on implant device innovation is aimed at improving the integration between the body's host tissue systems and orthopedic implants. ATI also benefited from the Angel Investor Tax Credit Program.
 
“The non-dilutive financing provided by the NOL program has been a key component of our funding strategy as we develop work toward improving results for recipients of orthopedic implants,” said David Washburn, Principal, Acuitive Technologies. “The Angel Investor Tax Credit program and other resources offered by the State have supported us through various stages of our growth, and have been instrumental in our ability to expand in New Jersey.”
 
Livingston-based Moblty is an enterprise software company that benefited under the NOL Program for the first time this year. The company has developed what has emerged as the leading shopper marketing software platform to help companies digitize their retail footprint. Moblty enhances the retail shopping experience when applied through its purposeful, measurable platform. 
 
“We are excited to participate in the NOL program, as having the ability to sell NOLs will improve cash flow and allow us to invest further in our technology,” said Rajesh Saggi, CEO, Moblty. “We appreciate the State’s progressive, proactive approach to helping emerging companies succeed.”
 
Also benefiting for the first time, Nephros, Inc. is a Bergen County-based commercial stage medical device company.  Headquartered in River Edge, Nephros owns more than 20 filtration-related patents. The company’s products are used primarily in medical applications, including dialysis centers, where ultrafilters are used for the removal of biological contaminants from the water and bicarbonate concentrate feeding hemodialysis devices. In hospital settings, the filters are used as an aid in infection control by retaining bacteria, virus, and endotoxins from water used by patients.
 
“Nephros is advancing technologies that help medical facilities protect their patients,” said Andy Astor, Chief Financial Officer, Nephros.  “The support we are receiving from the NOL program will help us deliver products to market faster, enabling us to safeguard the health of more patients, sooner.”
 
To learn about these resources, visit www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.

EDA-Supported Program Recognized for Progress Toward Driving Investment and Job Growth

TRENTON, N.J. (November 3, 2017) – New Jersey Community Capital (NJCC) was honored last week by the Southern New Jersey Development Council (SNJDC) for progress made under its THRIVE South Jersey intiative, which deploys flexible, affordable capital and technical assistance to generate quality jobs and improve economic opportunities across a four-county area in South Jersey.

A $1 million loan from the New Jersey Economic Development Authority (EDA) was used to boost the loan fund, supporting small businesses and workforce development programs in Cumberland, Gloucester, Salem, and Western Atlantic counties.

At its Annual Achievement Awards Reception, the SNJDC presented NJCC with its Investment in South Jersey Award, recognizing an investment in the Cumberland County College Arts and Innovation Center in downtown Millville through the THRIVE initiative.

To date, NJCC has closed 21 loans through THRIVE, totaling over $17 million of investment. These projects are expected to create or retain more than 360 full time equivalent positions and 170 construction jobs, and support the development of 72,000 square feet of commercial and community space, 112 housing units, and the creation or retention of 1,000 primary and higher education seats. THRIVE also has supported 50 small businesses and funded 12 community grants to further leverage economic activity and local capacity in southern New Jersey.

“The THRIVE initiative is exceeding all expectations in terms of its impact on economic activity in the southern region of the state,” said EDA Chief Executive Officer Melissa Orsen. “The EDA is proud to be a part of the THRIVE initiative and are certain the ripple effect of this activity will positively affect job creation and  further arts, education, and the small business community.”

THRIVE is part of the Pascal Sykes Foundation’s (PSF) South Jersey Economic Initiative, through which NJCC received $4.1 million in seed money to develop traditional and non-traditional financing within the four-county target area.  NJCC leveraged this initial PSF grant by obtaining another $9 million for THRIVE from partnering lenders including TD Bank, Wells Fargo, Fulton Bank of New Jersey, and the EDA.

“We are thankful for the recognition of the Southern New Jersey Development Council as we begin to see investments made under the THRIVE SJ initiative impacting families and communities,” said Wayne T. Meyer, President of NJCC. “We appreciate the support and shared commitment of the EDA and our other partners to creating economic development opportunities throughout these four counties.”

To learn more about EDA resources for small businesses, visit www.njeda.gov/lookherefirst  and follow @NJEDAWasHere on Twitter and LinkedIn.

Product Testing Lab Creates Jobs, Supports Global Companies

  

From left to right, Lon Weiss, COO and Co-CEO, CPTC; Robert Frega, Senior Vice President, Bank of America; Monika Athwal, Business Development Officer, EDA; Melissa Orsen, CEO, EDA; Craig Weiss, President, CPTC

TRENTON, N.J. (October 17, 2017) – Essex County-based Consumer Product Testing Company (CPTC) has been serving a niche in the global marketplace for more than four decades. Founded in 1975 by two individuals, the family-owned and operated company has grown to a staff of 128. Recent support from the New Jersey Economic Development Authority (EDA) allowed CPTC to purchase a permanent location in Fairfield and continue to grow in the State. 
 
CPTC tests cosmetics, personal care, pharmaceuticals, medical devices, and specialty chemicals for clients with products at every stage “from conception to completion.” The company, which is regulated by the United States Food and Drug Administration, Environmental Protection Agency, and Drug Enforcement Agency, also offers analytical chemistry, clinical safety efficacy, claims validation, photobiology, microbiology, sterility testing, and in-vitro toxicology testing services. In addition, CPTC has a medical advisory board, complete with dermatologists, ophthalmologists, and pediatricians, as well as, a gynecologist and a dentist.
 
Through the EDA’s Premier Lender Program, CPTC purchased the 44,000-square-foot facility in Fairfield it had been leasing for 20 years. Bank of America provided a $4.1 million loan that included a 44 percent EDA participation. In addition to mortgage financing, Bank of America also provided CPTC with a line of credit to purchase equipment.
 
The Premier Lender Program lowers the cost of borrowing for small businesses through the EDA’s partnership with more than two dozen banking partners. It offers low-cost financing with quick turnaround time from approval to closing, and by participating in or guaranteeing a portion of a loan, EDA reduces the lender’s risk. Businesses can use this financing for fixed assets or term working capital.

EDA Chief Executive Officer Melissa Orsen visited CPTC today as part of the EDA’s ongoing efforts to facilitate awareness of the programs it offers to support small and mid-sized businesses and not-for-profits. She was accompanied by Robert Frega, Senior Vice President, Bank of America.
 
“Today’s visit enabled me to see firsthand how CPTC has leveraged funding through State programs to thrive here in New Jersey and contribute to the Garden State’s workforce,” EDA CEO Melissa Orsen said. “I encourage other small business owners to reach out to the EDA to see how we can support their growth.”
 
CPTC Chairman Melvin Weiss noted that the company’s Clinical Evaluation department, which is comprised of safety and efficacy and photobiology testing, compensates volunteers for their study participation and opinions on products. On top of the company’s many full-time employees, which have increased 11 percent since acquiring the building, it estimates that Clinical Evaluations adds to the economic growth of northern New Jersey by more than $3 million each year.
 
“Our location here in Essex County is ideal, as it is easily accessible to so many pharmaceutical, cosmetic, and personal care clients,” Weiss said. “Using our innovative services, our esteemed professionals routinely test products for companies of all sizes, from the smallest of startups to Fortune 100 companies. We are thankful to the EDA and Bank of America for helping us continue to grow.” 
 
To learn more about EDA resources for small businesses, visit www.njeda.gov/lookherefirst  and follow @NJEDAWasHere on Twitter and LinkedIn.

Financing Approved to Support Growth of Early-Stage Companies

TRENTON, N.J. (October 12, 2017) – The Board of the New Jersey Economic Development Authority (EDA) today approved the first investment under the NJ CoVest Fund for Somerset-based Reflik, Inc. Launched in August, the NJ CoVest Fund is designed to fill the funding gap that occurs between product development and commercial expansion.
 
Founded in 2014, Reflik crowdsources talent, utilizing its extensive network of recruiters and industry professionals to create efficiency for human resource professionals looking to find top candidates in less time.  To date, Reflik has built a growing, nationwide community of more than 13,000 individual recruiters and staffing agencies, and cites growth for the first half of 2017 at a rate of 1,200 recruiters added per month. To support continued growth, the company is focused on expanding its marketing and business development efforts. 
 
“The NJ CoVest Fund is a perfect fit for successful start-ups like Reflik that are ready to advance to the next level, but need some support,” EDA Chief Executive Officer Melissa Orsen said. “Today’s approval is an important milestone as it validates the ability of the Fund to meet the needs of New Jersey’s emerging companies.”
 
The NJ CoVest Fund provides funding to New Jersey-based early-stage technology companies in the form of convertible notes with warrants, requiring a negative pledge and springing lien on protected intellectual property. Companies can receive investments ranging from $100,000 to $250,000. Reflik was approved for up to $250,000 and will use the funds to extend the reach of its recruitment network and its base of corporate customers. The company also expects to grow its salesforce from two to six over the next 18 months. The NJ CoVest fund features three percent fixed interest and 10-year maturity, with no payments due for the first seven years.
 
“The market has been extraordinarily receptive to Reflik’s Talent Crowdsourcing Platform and we look forward to continuing our strong growth trajectory,” said Reflik Chief Executive Officer Ashish Vachhani. “The note from the NJ CoVest Fund will provide us with the cash flow needed to expand our lead generation and sales efforts and staff.”

Vachhani noted that individual recruiters and staffing firms benefit from Reflik’s free access to hundreds of open positions, and the ability to start referring qualified candidates immediately, without the need to be approved by hiring companies as a vendor. Each position is associated with a monetary reward for recruiters, averaging $8,000. Recruiters also have the flexibility to recruit whenever they have time and they have the freedom to choose positions and clients. With a click of a button, users can also share a trackable link across all digital channels directly from the platform. They can receive the referral fee if someone who clicks on that trackable link is hired. 
 
The NJ CoVest Fund aligns with the EDA’s ongoing strategy to stimulate the growth of New Jersey’s innovation economy and drive commercialization of pioneering technology within the State. Among its myriad resources, the EDA has a long history of helping increase available capital for emerging companies by investing as a limited partner in venture capital firms that invest in New Jersey-based enterprises. To date, EDA has committed over $48 million to 14 venture capital funds since 1999. Cumulatively, these partner funds invested approximately six times the EDA’s investment into more than 60 New Jersey early-stage technology and life science companies. Including other third-party investors, companies in the EDA venture fund portfolio received $2.3 billion of funding and employed almost 2,000 full time employees as of December 31, 2016.

A complete list of NJ CoVest Fund program guidelines and company requirements and an application can be found at www.njeda.gov/njcovest.
 
To learn more about the resources available to New Jersey’s emerging technology and life sciences companies, visit www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.

About Reflik

Reflik is a talent crowdsourcing platform that finds the perfect ready-to-hire candidates in 10 days or less, through its extensive community of thousands of recruiters.  Hundreds of companies use Reflik to hire top talent, including Fortune 500 companies such as Canon, Marsh & McLennan, and General Dynamics.  CIOReview selected Reflik as one of the 20 Most Promising HR Technology Solution Providers 2016.   Reflik has been featured in Forbes, NJBIZ, CBS, TechRepublic, and more.  Learn more at Reflik.com