Organization Trained and Mentored 1,700 Entrepreneurs in 2014

TRENTON, N.J. (February 18, 2015) – Enhancing the state’s commitment to economic growth and entrepreneurial development, the New Jersey Economic Development Authority (EDA) continued its support of small businesses in 2014 through its partnership with UCEDC.  In 2014, UCEDC trained or mentored more than 1,700 entrepreneurs, conducted 55 business training workshops across the State, and provided $4.1 million in loans to 45 small businesses, 40-percent of which were minority or woman-owned enterprises.

The EDA’s partnership with not-for-profit economic development corporation UCEDC has helped to expand the array of training, technical and financial assistance services available to entrepreneurs and small businesses throughout New Jersey.  The EDA also provided a $250,000 loan to UCEDC in 2014 through its Loans to Lenders program, which allows the Authority to make capital available to financial intermediary organizations who can effectively reach small businesses in local markets.

“The state understands how critical small businesses are to New Jersey’s economy,” said Tim Lizura, EDA President and Chief Operating Officer. “Through its longstanding strategic partnership with UCEDC, the state has deepened its reach into underserved communities, and provided more access to resources for burgeoning entrepreneurs and small business owners.” 

UCEDC offers a wide variety of free and low-cost training workshops, including a series of courses that help develop financial and business literacy for business owners at all stages of maturation and a comprehensive program that walks entrepreneurs through all aspects of starting a business, culminating in the development of a business plan. Through its microloans, SBA 7(a) loans and SBA 504 Commercial Real Estate program, UCEDC also offers a range of financing vehicles to address business needs at every stage of growth.  Loan clients receive individualized business mentoring to ensure they stay on their growth track.

“Through its broad continuum of programs, for over 35 years, UCEDC has helped new companies get started, established businesses expand into new markets, and has provided technical support to small businesses and entrepreneurs in all stages of growth,” said UCEDC President Maureen Tinen. “Our partnership with the state has helped us to expand our ability to provide entrepreneurs with the technical and financial support they need to grow their businesses in New Jersey.”

In addition to its business training workshops, UCEDC conducted seven Entrepreneurship 101 classes in 2014, supporting 75 small businesses and entrepreneurs in Cranford, Totowa, Asbury Park, Trenton and Hamilton. 

Dianne Grossman, owner of Carpet Girl, is a recent graduate of UCEDC’s Entrepreneurship 101 program.  The Springfield-based business offers flooring project management, featuring sales consultants who make house calls.  “The class was an eye-opener,” she says. “You have no idea what you don’t know until you know it!”

Pastore Music, an instrument and audio equipment retailer and musical lessons studio, is a Union City icon.  But the aftermath of Hurricane Sandy left it cash-poor due to lost customers, threatening its viability and its plans to participate in the creation of an Arts District in the City. UCEDC’s $50,000 storm recovery microloan gave owner Jerry Pastore the working capital he needed.  “There was a culture of performance in this town and it’s important to keep that alive.  UCEDC helped us get back on track and even begin developing new lines of business.” Pastore said. 

With EDA support, UCEDC established a satellite office in Camden last year at the Camden Co-Lab, a co-working and business accelerator community for entrepreneurs, businesses, and students.  UCEDC’s business mentors are providing individualized counseling/mentoring services to the Co-Lab’s tenants while presenting workshops at the location for the general small business community. 

Other unique partners include the Newark Community Asset Preservation Corporation, which asked UCEDC to conduct specialized entrepreneurial training for emerging local contractors and developers, and the REPENT program, an initiative to provide entrepreneurial training to formerly incarcerated men in Trenton.

For more information on UCEDC, visit www.ucedc.com or call (908) 527-1166. To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov or call the Business Action Center at (866) 534-7789.

Company Also Announces Investment from NetScientific

TRENTON (February 5, 2015) – North Brunswick-based PDS Biotechnology Corporation closed out 2014 with three exciting announcements. The company appointed a new Executive Chairman to its Board, received its first institutional investment from an international biomedical and healthcare technology group, and reported successful completion of the first two (of three) cohorts in its Phase 1 human clinical trial for the company’s HPV-cancer immunotherapy.

Located at the New Jersey Economic Development Authority’s (EDA’s) Commercialization Center for Innovative Technologies (CCIT), PDS Biotechnology is a clinical-stage company that develops simpler, safer, and more effective immunotherapies for cancer and infectious diseases based on the company’s proprietary Versamune® immunotherapeutic platform.

The company named Sir Richard Sykes as the Executive Chairman of its Board of Directors. In 1994, Sykes was knighted for his services to the pharmaceutical industry, and in 2004 was awarded honorary citizenship in Singapore for his contributions to the development of the country’s biomedical sciences industry. Sykes brings more than 30 years of experience in the pharmaceutical sector to the PDS Biotechnology Board. He served as Chief Executive and Chairman of GlaxoWellcome between 1995 and 2000, and then as Chairman of GlaxoSmithKline until 2002.

It was also recently announced that publicly-traded institutional investor NetScientific plc (NSCI:London) made an investment in PDS Biotechnology. NetScientific is a biomedical and healthcare technology group that funds and develops technologies that offer transformative benefits to people’s lives and society through improved diagnosis, prognosis and treatment.

According to PDS Biotechnology, “stimulating and training the immune system to recognize and kill cancer cells has been demonstrated to be one of the most promising approaches to treating various types of cancer.” To that end, the company recently announced that it had successfully completed the first two (of three) cohorts in its Phase 1 human clinical trial for its lead product PDS0101, an immunotherapy that targets HPV-related cancers.

PDS Biotechnology currently leases laboratory and office space at CCIT. Home to more than two dozen emerging life sciences companies, CCIT offers its tenants affordable lab and office space, as well as a wealth of supporting resources. Some examples of this support include assistance with identifying appropriate funding sources such as state incentives and private sector funds, access to small business development resources and networking opportunities.

Last September, PDS Biotechnology participated in CCIT’s Founders & Funders event. Founders & Funders provides emerging tech and life sciences companies in NJ with access to angel and venture capital investors, paving the way for these businesses to attain the funding they need to thrive. The next Founders & Funders event is scheduled for March 10.

The EDA spoke with PDS Biotechnology President & CEO Dr. Frank Bedu-Addo about his experience in New Jersey and his company’s future:

How has CCIT helped PDS Biotechnology grow its business?

CCIT has been ideal for PDS. The facility provides all the amenities that an early-stage biotech company requires at reasonable cost, including first-rate laboratory space, offices, conference rooms, and A/V equipment. The management of CCIT has also been instrumental in facilitating interactions and discussions with potential partners and collaborators within the pharmaceutical industry and healthcare system in the area.

What was most beneficial about participating in Founders & Funders?

It was very helpful to meet with various investors, both angel and venture, to better understand the key investment parameters, preferred technologies, and investment stage(s) that they usually seek. The event provided good and relevant contacts, who were very willing to talk about their experiences and advice successfully growing and managing similar organizations. I believe the Founders & Funders experience helped me well position PDS to attract suitable investors such as NetScientific and close our first institutional round with them.

Why did you choose to grow your company in New Jersey?

We chose NJ for a number of reasons:

• Access to an experienced work force due to the established strength and presence of the biopharmaceutical industry
• Access to excellent cost-effective space
• Close proximity to many potential partners and collaborators
• Easy access from airports in NY, NJ and Philadelphia
• New Jersey’s angel tax benefit program provides a substantial and additional benefit for privately held early-stage high tech companies.

What’s in store for PDS Biotechnology in the near future?

PDS plans to complete the phase 1 human clinical trial during the first half of 2015.

PDS has established partnerships with some top cancer institutions and has begun preclinical development of the company’s broader cancer immunotherapy pipeline.

The company expects to complete another round of investment and initiate preparations for the PDS0101 Phase 2 clinical trials.

Emerging Life Science companies interested in finding out more about CCIT should contact Anne-Marie Maman at amaman@njeda.com or at CCIT’s main phone number (732) 839-1880.

$74.3 Million Invested Since Program’s Inception in 2013

TRENTON (January 16, 2015) – New Jersey Economic Development Authority (EDA) CEO Michele Brown announced today that the EDA approved 181 Angel Investor Tax Credit investments in 2014 to support New Jersey-based emerging technology and life sciences companies, representing the investment of more than $60 million of private capital.

Signed into law by Governor Christie in January 2013, the Angel Investor Tax Credit program provides credits against New Jersey corporate business or gross income tax for 10 percent of a qualified investment in an emerging technology business that conducts research, manufacturing, or technology commercialization in the state. The company must have with fewer than 225 employees, with 75% of those employees with a physical presence in New Jersey and Investors do not need to be New Jersey residents, and if the investor has no offsetting NJ tax liability, the credit is refunded to the investor.

“Since the Angel Investor Tax Credit program began, investors have funded more than $74 million to support a wide variety of New Jersey up-and-coming tech companies,” Brown said. “Whether finding new ways to harness renewable energies, discovering life-saving drugs, or simply modernizing the way we watch sports games, emerging tech companies are making a difference in the everyday lives of people worldwide.”

One company that benefited from the Angel Investor Tax Credit program is Princeton Power Systems. The EDA approved more than $5 million last year and $2.5 million in 2013 for Princeton Power Systems’ investors through the Angel Investor Tax Credit program. Princeton Power Systems is a technology company that designs and manufactures state-of-the-art solutions for energy management, micro-grid operations and electric vehicle charging. These credits provided increased financial resources to the investors of Princeton Power Systems, allowed for a guaranteed short term return on their investment and ultimately allowed for increased support to the company. Created in a Princeton University dorm room in 2001 and now headquartered in Lawrenceville, Princeton Power Systems works with companies all over the world. Princeton Power Systems received an Innovative Project award from Intersolar North America in July 2014 for its commercial-scale micro-grid system that now provides alternative energy to power Alcatraz Island in San Francisco.

The EDA spoke with Princeton Power Systems’ President and CEO Ken McCauley about what the Angel Investor Tax Credit program means to the company, as well as where the company has been and where it’s going.

The Angel Investor tax credit encourages investing, which allows for business expansion and continued growth. What does funding provided through the Angel Investor Tax Credit program mean to Princeton Power Systems?

With the help of the Angel Tax Credit program, our investors were able to receive an immediate return on their investments. Throughout 2013 and 2014, we were able to exceed 100% growth year over year while growing our customer base and geographic reach. It appears likely that such growth will continue in 2015. The funding enables Princeton Power Systems to hire new people; we’ve grown from 30 to 50 people, with those additional jobs all being in manufacturing. We’ve also doubled our floor space and upgraded the property.

What is Princeton Power Systems’ biggest success to date?

On a macro level, our biggest success is the concept that we took ideas that a few students had in 2001 and grew it into a company with a marquee customer list in a rapidly growing market. We serve the United States Military and our products are deployed to 11 countries around the world, including a shipment we just sent to an island off the coast of Africa that currently has no reliable power source. On a human level, what we do in developing countries helps people have a better life. Elsewhere, our systems increase energy security, reduce carbon emissions and save money through a variety of business models.

What’s on the horizon for Princeton Power Systems?

We anticipate continued international business growth and diversifying our customer base. We continue to work on innovative products. We plan to double our business in the coming year and add an additional 20 people to our staff. In that respect, we look forward to continuing to grow jobs in the state of New Jersey.

The EDA also caught up with Greg Olsen, Founder of GHO Ventures, who has been a long-time investor in several NJ tech companies, including Princeton Power Systems, and participates in the Angel Investor Tax Credit program.

A chance encounter led to Olsen’s decision to invest in Princeton Power Systems. Olsen was exiting a Starbucks one day in 2001 when he happened upon former California Congressman Ed Zschau. The two men recognized each other and, after brief introductions, the Congressman told him that “four guys won [Princeton University’s] business plan contest.” Congressman Zschau asked Olsen if he would be interested in meeting with the winners. The next day, Olsen met with the founders of Princeton Power Systems and the rest, as they say, is history. Olsen currently sits on Princeton Power Systems’ Board of Directors. Remembering how, like many startup companies, Princeton Power Systems used to survive payday to payday, Olsen noted, “It really feels good now that they are a success.”

In 2005, Olsen was one of the first civilians to visit the International Space Station. A few months later he founded GHO Ventures. Is there any correlation?

“Not exactly,” the scientist-turned-entrepreneur said when asked this question. One of Olsen’s companies, Sensors Unlimited, was sold for the second time while he was up in space. It was decision time for Olsen. Did he want to start yet another company or close the door on that chapter of his life? He took a few months to figure out what he wanted to do and started GHO Ventures on January 1, 2006.

What does Olsen find beneficial about investing in New Jersey tech companies? Having grown up in New Jersey, Olsen is aware of New Jersey’s top-notch universities. Olsen went on to emphasize that, “New Jersey has a great tech base.” None of Olsen’s companies have ever looked to move outside of New Jersey.

When asked what advice he would give to someone considering Angel investing, Olsen cautioned, “Think carefully,” Olsen advises. “You have to love it. If you’re not sure, don’t do it. There are no guarantees. Follow your passion.”

For more information on the Angel Investor Tax Credit program, visit www.njeda.gov and follow us on Twitter and LinkedIn @NJEDATech.

Edison’s Investments Fuel Growth of New Jersey’s Technology Companies

TRENTON (January 15, 2015) – New Jersey Economic Development Authority (EDA) CEO Michele Brown announced that the EDA this week approved a limited partnership investment in Edison Partner’s latest  fund, which is aimed at bolstering the growth of New Jersey’s technology industry.

Managed by Lawrenceville-based Edison Partners, Edison VIII will invest in approximately 20 growth stage technology businesses in four key industry sectors: financial technology, healthcare IT, interactive marketing and digital media, and enterprise 2.0, which includes mobile, security and business operations software.

"The EDA’s investment in Edison VIII reinforces the Christie Administration’s commitment to nurturing technology companies at every stage of growth," Brown said.

To date, the EDA has approved investments in 12 venture capital funds for almost $40 million; these funds have leveraged the EDA’s investment in New Jersey businesses by more than 62 times.  The EDA invested in four previous Edison Partners (formerly Edison Ventures) funds – Edison III, IV, VI, and VII. Through these funds, Edison Partners has invested $130 million in 25 New Jersey-based technology companies.   

Edison Partners participated in last year’s Founders and Funders events, during which more than 60 entrepreneurs and start ups participated in a "speed dating" match up with 40 investors, paving the way for these emerging companies to attain the funding they need to grow in the State. The next Founders & Funders event is scheduled for March 10.

The EDA spoke with Chris Sugden, Managing Partner at Edison Partners and a member of the Edison VIII management team. 

How does the EDA’s investment help support the fund?
From access to several of the most prestigious universities in the country to the support it shows to its smallest startup company, New Jersey provides a host of resources and opportunities to the technology sector.  The NJEDA has been a great partner to Edison portfolio companies and the NJ technology community as a whole. Our companies take part in many incentive programs offered by the EDA. In addition, the EDA has provided capital directly to our companies through debt programs and the tax related NOL sale program. Finally, we guide all of our portfolio companies to engage EDA staff regularly regarding incentives and training grants available as they expand.

How do you select which tech companies to support?
Our investment strategy is clearly articulated on our website and Edison investment professionals are eager to speak with entrepreneurs even prior to making a decision to raise capital. We are highly selective in our investment process. The key attributes of our investments are: high growth (prior to taking capital), product completeness (use of Edison investment primarily to further innovation, sales and marketing) and a strong management team;  The extensive talent pool of qualified New Jersey scientists and entrepreneurs is second-to-none.  Beyond capital, our Edison Edge value-added services platform offers these companies advisory capabilities, a relevant network, and executive education programs to accelerate growth. 

How do you determine the allocated amount to each portfolio company?
Initial investment in a company is determined by the entrepreneur or management team’s business plan. We often see business plans that forecast the need for less capital than will actually be necessary to achieve the team’s goals. One piece of advice I would offer is to be realistic about your plan’s capital needs and test your plan with mentors, angel investors and service providers who have experience growing high-growth businesses.

Additional or follow-on investments are determined by portfolio company performance. Follow-on investment dollars are intended for increasing growth rates. This is important, as our job is to deliver high returns to our investors. Over-allocating capital to companies that are performing poorly is a recipe for subpar performance by Edison or any investor.

What is the biggest success story to come out of the funds in which the EDA invested?
The good news is that we have several and, of course, we love all of our portfolio companies. Two that I would highlight are GAIN Capital and PHX, both located in Bedminster.  Both companies have grown several fold since Edison invested. Each had fewer than 50 employees at time of our investment; today both companies employ hundreds. Gain Capital completed its IPO a few years ago and continues to grow. The human talent in New Jersey is a key differentiator that allows these, and our other portfolio companies, to scale quickly with the goal of becoming market leaders.
 

TRENTON (January 14, 2015) – Supporting the Christie Administration’s commitment to strengthening the technology industry in the Garden State, Economic Development Authority (EDA) CEO Michele Brown announced that nearly $1 million  was approved yesterday to expand the availability of space in Hoboken, Jersey City and Asbury Park.  Three entities selected through a competitive Request for Proposal process can use the funds for acquisitions, improvements and/or fixed assets associated with expansion of co-working space.

“This funding will support the earliest stage New Jersey entrepreneurs and technology startups by partnering with three thriving co-working spaces in Hudson and Monmouth Counties,” Brown said.

Co-working spaces enable entrepreneurs from different companies to work side by side, sharing ideas.  They are often located near easily accessible mass transit, reflecting renewed interest in urban living and working arrangements.  For entrepreneurs and startup companies with limited access to immediate revenue, co-working spaces do not require members to sign long-term leases and also offer mentoring networks for their members. 

Mission 50, in Hoboken was approved for a $556,550 loan. Currently operating from a 3,000 square-foot space, it expects to triple in size by expanding to a 13,000 square foot co-working facility near mass transit.  Boasting laptop-ready desks with Internet connectivity, virtual mailing addresses, soundproof phone booths and much more, Mission 50 has a current membership roster of over 300, as well as a pipeline of 200 additional member companies.  Tenants can choose between daily and monthly leasing options, as well as decide whether they want private or shared workspace.  Mission 50 frequently collaborates with the Hoboken Chamber of Commerce, Stevens Institute of Technology and the NJ Tech Meetup on various initiatives. 

Cowerks in Asbury Park was approved for a $240,000 loan.  Cowerks currently has 140 members, with a large concentration of software developers.  Founded in 2010, Cowerks has already outgrown its office space once and currently operates out of a 1,600 square foot space in Asbury Park.  Cowerks plans to expand its existing location, and also occupy a nearby facility located near the city’s transit center.  Cowerks regularly hosts tech-related events at the Jersey Shore, including meetups for Jersey Shore Tech and Jersey Shore Entrepreneurs.  Education workshops run by Cowerks have focused on start-ups, software development, internet marketing, business development and legal/accounting advice for small businesses.

Indiegrove, located in the heart of downtown Jersey City, was approved for a $175,000 loan.  The co-working space currently has 135 members, of which more than 50 percent are from the tech industry.  Two years after opening its doors, Indiegrove plans to expand its current location in downtown Jersey City.  Indiegrove partners with several entrepreneurship and economic development organizations, including Rising Tide Capital, Greater Newark Enterprises Corporation (GNEC), Freelancer's Union, The Center for Urban Entrepreneurship and an array of successful entrepreneurs in order to provide education, mentorship and networking opportunities to its members and promote long term business sustainability.  

The EDA spoke with the founders of Mission 50, Cowerks and Indiegrove to learn more about their respective programs and what the EDA investment means to their growth.

Questions for Mission 50 President and Co-Founder Gregory Dell’Aquila:

How do you plan to use the funding provided by the EDA?

We plan to use the funds for some combination of construction of space, furniture and fixtures and working capital.  

To what do you attribute your large membership numbers?
 

I think it’s a combination of variables.

1. Location, Location, Location.  As the only co-working space in Hoboken, we have a captivate audience.  We offer entrepreneurs or corporate employees with flexible schedules a place to put down their roots. 
2. Business Model.  The way that we operate our business and the types of memberships we offer allow for great flexibility for potential members and their needs.
3. Successful marketing strategy. 

Is there an average length of time for membership before companies branch out on their own, with their own locations?

Small businesses, which use co-working spaces for their flexibility and for “laptop ready space,” usually stay at Mission 50 for approximately 12 months.  These are the folks that are more in a growth mode.  Once they’ve created their own ecosystem within their company, they usually move on from co-working spaces.  On the other hand, solo entrepreneurs stay at Mission 50 approximately 12 to 24 months.  In general, these are the ones who like the concept of maintaining their lifestyle and feed off of the shared space and the shared sense of community.    

To learn more about Mission 50, visit http://www.mission50.com.

Questions for Cowerks Co-Founders Danny Croak and Bret Morgan:

How do you plan to use the money provided by the EDA?
 

We plan on using the EDA funds to build on the momentum we have seen over the past few years here in Asbury Park and Monmouth County.  When complete, we will have, more or less, quadrupled our available space for start-ups and entrepreneurs to run their business as well as launch the first Makerspace in Monmouth Country.  Tied in with our expanding classes and workshops we feel that with these funds we will be able to become the go to resource for technology and entrepreneurial activities in the area.

Do you see a lot of collaboration between startup companies at Cowerks?  If so, can please you elaborate on this interaction?
 

It's pretty amazing what happens when you put a bunch of smart and talented people in a room together. Since our inception we have nurtured a culture of collaboration versus competition and it's really starting to shine.  There are currently around half a dozen software development shops working on projects together at Cowerks currently and we've really begun to see a community form around them. Every business has their own specialty and we've seen them collaborating on projects together.  This not only has fostered the entire notion of community development but allowed all of their businesses to grow by leveraging each other's resources to collectively take on larger projects. 

I noticed that workshops that you offer are open to the community.  Can you speak to whether or not this translates into new interest in, and therefore new membership at, Cowerks? 

Community building has always been at the core of what we have done – whether it be providing affordable desk and office space for start-ups and entrepreneurs, classes and workshops, or networking events such as Jersey Shore Tech.  There is a natural cross over for all facets of our model so it's only natural that attendees of our workshops, in many cases, become members of our co-working community.

For more information, visit http://www.cowerking.com/.

Questions for Indiegrove Founder Zahra Amanpour:

How do you plan to use the funding provided by the EDA?
 

The funding will be used for the space build out and startup costs, i.e. renovations, hardware, advertising. 

I noticed you give a Free Friday at Indiegrove where nonmembers can check out the workspace for free.  Have you found that this is beneficial to bringing in new members?

Free Coworking Friday launched shortly after we opened our doors in 2013 and has been a great way for people to try out the space and grow the community. We have a few people take advantage of it every week and many of them end up becoming members.  

What is the origin of the name Indiegrove?
 

I wanted a name that captured the spirit of entrepreneurship and reinforced our focus on community and growth.  My husband and I were driving up 95 on our way back from visiting family and I threw the word "Indie" out there.  We both liked it.  Then we drove by a grove and I said how about "Indiegrove."   It stuck. 

To learn more about Indiegrove, visit http://indiegrovejc.com/.

For more information on funding provided to the tech industry, visit www.njeda.gov and follow us on Twitter and LinkedIn @NJEDATech.

The New Jersey Economic Development Authority’s next public Board Meeting will be held on Tuesday, January 13, 2015 at 10 a.m. at the EDA offices at 36 West State Street, Trenton. A copy of the proposed agenda can be found prior to the meeting at www.njeda.gov/Board. Following the Board Meeting, minutes and the full agenda will also be available at www.njeda.gov/Board.