TRENTON (August 6, 2015) – The New Jersey Economic Development Authority today continues its series highlighting how New Jersey investors and entrepreneurs are making a difference  in the Garden State’s technology community.

After decades building two technology companies, innovator and investor Derek Lidow now devotes his time to coaching emerging entrepreneurs. A strong believer in the motto “anyone can start a business, but only leaders will succeed,” Lidow currently teaches budding entrepreneurs at Princeton University how to build successful enterprises. Having earned his Bachelor of Science in Engineering from the New Jersey Ivy League school, Lidow is passionate about nurturing New Jersey’s technology ecosystem.

“Entrepreneurial leadership definitely can be learned,” Lidow explained. “It boils down to some fundamental skills – ones you don’t necessarily have to be born with. They are things that everyone can learn with attention and practice.”

Lidow also serves on the Board of United Silicon Carbide, Inc. (USCi), a company in which he invests. South Brunswick-based USCi, which creates technology designed to replace silicon in semiconductor applications to increase performance and improve efficiency, has benefited from several State resources, including the Angel Investor Tax Credit Program and a $2 million Edison Innovation Green Growth Fund (EIGGF) loan. Funded by the New Jersey Board of Public Utilities (BPU), the EIGGF program offers growth capital loans to assist New Jersey clean technology companies in advancing energy efficient and renewable energy products in the State. 

After graduating with a PhD in Applied Physics from Stanford University, Lidow worked his way from being a product engineer at International Rectifier Corp. (IRC) to the company’s Chief Executive Officer (CEO). In 1999, he left IRC and spent nearly a dozen years founding and building iSuppli, an electronics technology research and advisory services company in California, considered to be the largest of its kind in the world. Lidow sold the company to IHS in 2010. 

As an innovator, Lidow has made several contributions to the electronics industry, including widely implemented best practices in project management, quality management, and critical insights into the operations of large complex value chains. Technology-giants Sony, Samsung, Philips, and IBM, all of which have a footprint in New Jersey, have benefited from Lidow’s innovations.

In addition to teaching and innovating, Lidow has written articles that have been published in such high profile publications as The Wall Street Journal and the Harvard Business Review, and is the author of “Startup Leadership: How Savvy Entrepreneurs Turn Their Ideas Into Successful Enterprises,” which was published last year. He regularly travels around the country advising audiences on how to build successful companies.
@NJEDATech spoke to Lidow about his experience in New Jersey and the advice that he has for emerging entrepreneurs:

To what State resources do you point emerging entrepreneurs in New Jersey?
Since New Jersey has such a diverse entrepreneurial ecosystem, it depends upon what type of entrepreneur I am talking to.  For example, if I am speaking to someone who wants to grow an agriculture company, I would point them towards the exciting and potentially impactful agricultural startups around Princeton. Depending upon the field of interest, I usually ask entrepreneurs who they know at the great universities in the state. Entrepreneurs are always better off with great advisors and mentors, and NJ has a wealth of savvy, experienced, and well-connected experts waiting to help entrepreneurs, not just students, at its world class universities.

What is the first piece of advice you give budding innovators?
"Understand why you're doing this!" Starting a company is hard work that requires huge sacrifices and changes. Furthermore, if you're aspiring to be your own boss, you will want to steer a very different course than if you are looking to make the most money. If you can understand why you really want to start your company, you can avoid countless heartbreaking crises down the road. 

What do you tell your students makes a company marketable in today’s world?
The most valuable companies make their customers and clients the happiest. This applies for business-to-business as well as business-to-consumer companies. Many entrepreneurs lose sight of the fact that the happier you make someone (or maybe a group of executives in case you're selling to a company), the more money they are willing to give you in return. 

For more information about resources available to support New Jersey’s technology industry, visit https://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.

TRENTON (July 30, 2015) – The New Jersey Economic Development Authority (EDA) continues its series highlighting how entrepreneurs and investors are helping to build New Jersey’s technology ecosystem.
 
Serial entrepreneur Dr. David Fischell, of Fair Haven, has founded and led more than a dozen medical device companies to success in the last 20 years. To Fischell, developing medical devices is a family affair. David, along with his father Dr. Robert Fischell, a physicist, and his brother Dr. Tim Fischell, a cardiologist, started New Providence-based Svelte Medical Systems in 2007. The company produces a cost-effective expandable coronary stent system featuring the smallest diameter in the industry. This stent has led to a new standard of care in treating the buildup of plaque in the coronary arteries feeding blood to the heart, known as atherosclerosis.  Svelte's legacy follows the Fischells' work on stent design begun in late 1993, that ultimately led to David's design of the Cordis Cypher^TM stent, the world's first drug eluting stent sold by Johnson & Johnson (J&J) and implanted in more than five million patients.
 
David Fischell holds 140 issued US patents, and in total, the Fischell family has more than 250 patents to its name. Their medical device inventions run the gamut from implantable devices that detect and treat epileptic seizures to catheters used to cure high blood pressure.
 
“Serial entrepreneurs like Dr. Fischell enjoy the challenge of identifying unmet needs and finding ways to use technology to address those challenges,” EDA CEO Melissa Orsen said. “This fosters a spirit of innovation that fuels New Jersey’s technology ecosystem by creating jobs, and reinforcing the State’s image as a place for technology businesses to grow and thrive.”
 
Fischell currently serves as the CEO of Angel Medical Systems, a medical device company in Shrewsbury that he founded with his father and brother, in 2001.  Angel Medical is seeking Food and Drug Administration approval for its implantable Guardian^TM System, designed to detect and alert patients to the onset of a heart attack, allowing them to seek immediate help.
 
Both Svelte Medical Systems and Angel Medical Systems have taken advantage of State resources including the Technology Business Tax Certificate Transfer (NOL) Program. Svelte Medical Systems also raised $4.8 million last year from David and Robert Fischell and other investors who were able to benefit from the State’s Angel Investor Tax Credit Program.
 
After completing a PhD in Applied Physics at Cornell University in 1979, Fischell moved to New Jersey and took a job at Bell Laboratories' largest facility in Holmdel, where he spent his time performing and then directing research and development projects. He left Bell Laboratories in 1991 to focus on creating medical devices. 
 
Like many New Jersey entrepreneurs, Fischell is active in several organizations that encourage collaboration within the entrepreneurial community. He is a member of the Institute of Electrical and Electronics Engineers, headquartered in Piscataway, whose core mission is to foster innovation and excellence. He’s also a Fellow of the American Institute for Medical and Biological Engineering and a Trustee of Cornell University, his alma mater.
 
@NJEDATech spoke with Fischell about his experience growing companies in New Jersey:
 
What attracted you to New Jersey as the place to grow your medical device companies?
There are two key reasons why Svelte and Angel Medical are located in New Jersey instead of the more dense centers of medical device manufacturing such as Minneapolis or the Bay area in California. First is the wonderful environment for life and raising a family that my wife Sarah, a former Bell Labs engineer and department head, and I found in Monmouth County. Bell got us here, but the great schools, proximity to New York City and coastal environment have kept us here.
 
The second, and just as important, reason is the availability of the right talent for staffing our companies. Svelte has many former J&J employees, as New Jersey had been a center for stent development in the 1990s. The availability of lots of talent with drug development and manufacturing capability was also helpful as Svelte's top-of-the-line product is a drug eluting stent that prevents regrowth of tissue inside of the stent (called “restenosis”). For Angel Medical, whose product is primarily software, the leadership and much of the technical staff were also ex-Bell Labs employees.  While it might seem strange to be using telecommunications engineers to develop medical technology, it should be remembered that among other things, Bell Labs pioneered the process of designing software that never breaks or crashes.
 
You’ve been quite successful in leveraging State resources to help grow your company. Can you please describe how these companies benefited from the Angel Tax Credit and the NOL program?
It is perhaps the NOL program that has been the most beneficial to both Svelte and Angel Medical, bringing in millions of dollars over a ten-year period that is non-dilutive to shareholders.  It has really helped during recent years as the venture capital industry has moved away from funding medical device ventures because of the time and cost for return on investment. As a result, angel investments have become a much more important part of funding, with programs like the Angel Tax Credit being helpful in motivating such investment.
 
What piece of advice do you have for budding entrepreneurs just starting out?
It is all about the right starting team. Your initial group needs to be able to go from work as individual contributors when you begin, to managers of a group or department as the venture grows.  Such were the four people that formed, with me, the starting team at Angel Medical. My starting team of Jonathan Harwood, Steve Johnson, Dave Keenan and Rich Bantel were each critical to our success.  All having roots from Bell Labs, they eventually became Chief Technology Officer, Vice President of Research Development, Vice President – Clinical and Regulatory, and Director of Software Development as the company grew.
 
For more information about resources available to support New Jersey’s technology industry, visit https://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.

TRENTON (July 23, 2015) – The New Jersey Economic Development Authority (EDA) continues its series highlighting how entrepreneurs and investors are helping to build New Jersey’s technology ecosystem.

In 1999, scientist-turned-entrepreneur Navneet Puri earned his PhD in Pharmaceutical Sciences from Rutgers University and went on to found InnoPharma, Inc. in Piscataway just four years later. The research and development pharmaceutical company, focused on developing complex generic and innovative specialty products in injectable and ophthalmic dosage forms,   was ultimately acquired by pharmaceutical giant Pfizer last year. Under Puri’s leadership, InnoPharma had more than 30 products in various stages of development, including 10 generic products that had received Food and Drug Administration approval.

Puri, a resident of Lebanon, Hunterdon County, currently serves as Vice President of Worldwide Research & Development at Pfizer, a position he plans to leave at the end of the month to start a new company.  

As a graduate of a New Jersey-based university and an active entrepreneur, Puri understands the importance of nurturing and leveraging New Jersey’s technology ecosystem. “New Jersey offers an abundance of professional talent, particularly in the pharmaceutical sector. With numerous major pharmaceutical companies locating and expanding in the State, as well as a top-notch network of colleges and universities, the talent pool in New Jersey is second-to-none.”

In addition to sharing his knowledge with CEOs of New Jersey startup companies, including participating in events hosted at the EDA’s Commercialization Center for Innovative Technologies (CCIT), Puri is a charter member of the New Jersey-Philadelphia chapter of The Indus Entrepreneurs (TiE), a not-for-profit networking organization that aims to foster entrepreneurship through mentoring, education, incubating and funding. He also lends his expertise to Vistage, a peer-advisor group that hosts once-a-month, day-long events to enhance career development. This year Puri also volunteered his time as a judge at the New Jersey Tech Council’s Venture Conference, a program that showcases more than three dozen entrepreneurs and their businesses.

Prior to being sold to Pfizer, InnoPharma also took advantage of various State programs, including the popular Technology Business Tax Certificate Transfer (NOL) Program, which enables qualified, unprofitable New Jersey-based technology or biotechnology companies to sell a percentage of net operating losses and research and development tax credits to unrelated profitable corporations.

“Navneet not only grew a startup company into a multi-million dollar enterprise, he has also devoted his time and energy to cultivating the next generation of entrepreneurs,” EDA Chief Executive Officer Melissa Orsen said.
 
@NJEDATech spoke with Puri about his experience in New Jersey and the advice that he has for emerging entrepreneurs.

While growing InnoPharma, you tapped into State resources such as the NOL program.  How did the company benefit from this program?  

The NOL program is very beneficial to R&D based companies like InnoPharma. During growth years, R&D based companies are required to infuse a lot of cash into development of products, while not leading to immediate revenue accretion. This happens at a time when, as an entrepreneur, you are confounded with inherent risks to success. NOL brings in much-needed, non-dilutive cash influx, where companies can sell their net operating losses to the state. However, companies should be careful in their corporate entity structure to take full advantage of this program, and should consult with their tax accountants and attorneys, as well as engage with the EDA.

What advice do you give budding entrepreneurs just starting out?

Budding entrepreneurs enter into this mysterious world of entrepreneurship with mixed emotions, including uncertainty, fear, excitement, ambition, anxiety and numerous other feelings. All these feelings are natural and should be embraced, as they can lead to higher self-awareness as well as empathy toward the ecosystem around us. Both of these aspects are crucial; the former to assure true motivation to start a new venture is crystal clear, leading to self-sustainable entrepreneurial mindset, and the latter to assure unmet market needs are well understood, analyzed, paving the way to form a well thought out business model.  

It is imperative for entrepreneurs to write a detailed business model, and have it vetted by others who have experience in relevant areas of expertise. This will assure that possible weaknesses in the model are highlighted, all the assumptions challenged. Every business model needs a reality check.

A new entrant in the journey of entrepreneurship should assure he/she has appropriate family and professional support, and should surround himself/herself with an experienced team of professionals, consultants and advisors.

There are various forums in New Jersey where relevant advice, guidance and mentorship can be provided to new entrepreneurs, and one must reach out to seek advice. Successful entrepreneurs are (or should be) happy and keen to share their experiences; some of them can be extremely beneficial and relevant during growth years of a new venture.

What recommendations do you have for other serial entrepreneurs thinking about giving back to emerging entrepreneurs?

I cannot speak enough about the importance of giving back to the community, society and emerging entrepreneurs. This leads to a cascading effect of growth and improvement in our overall economy and ecosystem — more than we can ever imagine.

The most important asset of serial entrepreneurs is their wealth of knowledge accrued from years of experiences in the real world.  Sharing these experiences with emerging entrepreneurs can often shave off years of time spent going down the wrong path.  A new entrepreneur is wise to learn from the mistakes of his mentors. The spirit and practice of entrepreneurship is industry-agnostic, making it easy for entrepreneurs in all stages to find common ground.  

Serial entrepreneurs should seek out forums where they can engage with emerging entrepreneurs, provide them with guidance and advice, and where appropriate, investment and referrals.  

For more information about resources available to support New Jersey’s technology industry, visit https://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.  

A meeting of the Fort Monmouth Economic Revitalization Authority (FMERA) Board has been scheduled for Wednesday, July 15, 2015 at 7:00 pm at the FMERA Office, 502 Brewer Avenue, Oceanport, NJ. Formal action may be taken at this meeting.
 
A copy of the proposed agenda can be found 48 hours prior to the meeting at the websites of the Fort Monmouth Economic Revitalization Authority: www.fortmonmouthnj.com

Bolstering New Jersey’s already vibrant technology ecosystem, the New Jersey Economic Development Authority (EDA) recently welcomed emerging nutraceutical company Pre-D Partners as the newest tenant at the Commercialization Center for Innovative Technologies (CCIT). The EDA also renewed the lease of biotechnology business BioAegis Therapeutics at the life sciences incubator in North Brunswick.
 
“The incubator’s centralized location along New Jersey’s Route 1 research corridor, coupled with the numerous resources available to tenants, makes CCIT an ideal spot for emerging technology companies to grow their businesses,” EDA CEO Melissa Orsen said. “We look forward to watching Pre-D Partners and BioAegis Therapeutics thrive in the years ahead.”
 
Pre-D Partners recently signed a one-year lease for office space at CCIT. Pre-D Partners develops and distributes dietary supplements, sold under the brand mitoManage®, targeted to individuals with metabolic disorders, such as pre-diabetes.
 
CCIT offers tenant companies such as Pre-D Partners affordable lab and office space, as well as a broad array of services and programs. Tenants have access to educational and support programs such as a Lunch and Learn series, during which local enterprises speak about best practices in their industry; and the new Executive-in-Residence Program, which offers mentoring and advice to tenants from high-level life sciences executives in transition.   
 
CCIT has welcomed 35 new tenants since 2010. When @NJEDATech asked Pre-D Partners Chief Operating Officer Gary Minkoff why he chose to join the 23 other emerging companies in growing their businesses at CCIT, he responded, “We knew the opportunity to be part of this remarkable entrepreneurial ecosystem would provide us with access to a unique set of peers, resources, support and advocacy that would be vital in helping us achieve our vision as innovators and leaders in providing science-based dietary supplements."
 
Earlier this month, clinical-stage biotechnology company BioAegis Therapeutics renewed its lease at the incubator. Since arriving at CCIT, BioAegis Therapeutics, which is developing groundbreaking discoveries in inflammation and infection, has taken advantage of several programs at the life sciences incubator.
 
BioAegis participated in New Jersey’s Founders & Funders event in March. The program was created to directly connect companies with angel and venture capital investors. During events in 2014 and 2015, more than 90 entrepreneurs and startups met with investors, paving the way for these companies to attain the funding they need to grow in the State. The next Founder & Funders event is scheduled for October 27. 
 
BioAegis also benefitted from CCIT’s Executive-in-Residence Program and took advantage of CCIT’s first-ever vendor fair, which exposed them to service and equipment providers that can also help their business flourish.
 
@NJEDATech spoke to BioAegis Therapeutics Founder and CEO Susan Levinson about the company’s experience at CCIT:
 
Why did you choose to grow BioAegis in New Jersey? 
Our company founders are from four nearby states. We analyzed the costs, resources, incentives and workforce across all four states and chose NJ primarily because of its experienced, high quality workforce and incubator facilities. 
 
What have you found most helpful during your time at CCIT? 
The helpful staff has been very supportive to our team and access to other young companies to share equipment has been very valuable.
 
What is BioAegis’ biggest success to date? 
Our team is extremely fortunate to be working on a human protein with a wealth of research in support of the therapeutic rationale, as well as a benign safety profile. Working with a world renowned team of clinicians, we have generated human biomarker data in our targeted indication (Severe Community Acquired Pneumonia) which will allow us to minimize trial cost and risk in our Phase 2 studies.
 
What’s on the horizon for BioAegis? 
BioAegis plans to initiate our next biomarker-driven Phase 2 trials in severe Community Acquired Pneumonia (CAP) in the European Union in early 2016. The objective will be to demonstrate that the repletion of pGSN can prevent the uncontrolled spread of inflammation without compromising immune function in critically ill patients.
 
Severe Community Acquired Pneumonia is a leading cause of death in the US and around the world.  Patients typically proceed to Multiple Organ Dysfunction Syndrome (MODS), morbidity and mortality which generates enormous cost to the health care system. As a result of organ damage, survivors often require ongoing care after being discharged from the ICU due to lingering neurocognitive and functional disabilities. This puts an enormous incremental strain on the health care system.
 
For more information about the resources that CCIT offers, visit https://www.njeda.gov/ccit and follow @NJEDATech on Twitter and LinkedIn.

TRENTON (July 8, 2015) – The New Jersey Economic Development Authority (EDA) today continues its series highlighting how entrepreneurs and investors are helping to build New Jersey’s technology ecosystem.
 
With a career spanning more than 30 years, John Bailye, of Far Hills, has been involved with dozens of startup companies, venture funds and entrepreneurial endeavors. Of his notable accomplishments in New Jersey is Dendrite International.
 
Founded by Bailye in his home country of Australia in 1986, he relocated the company’s headquarters to New Jersey one year later with the goal of pioneering the development of software applications for pharmaceutical sales force management. Under his leadership, Dendrite grew from a two-person operation with $175,000 in annual sales to a global powerhouse, generating nearly $470 million in sales in 2006 and employing more than 3,000 in 26 countries; the company was ultimately sold in 2007 for nearly $800 million.
 
In 2010, Bailye took over as Chief Executive Officer of another New Jersey-based business, EKR Therapeutics. The specialty pharmaceutical company was struggling after a key patent loss. Bailye and his team helped to successfully turn the business around and sell the profitable enterprise in June 2012. 
 
Bailye has used his experience and success to strengthen New Jersey’s technology industry and help promote the next generation of pioneers. 
 
He is a founding member and former chairman of the New Jersey Technology Council (NJTC), and is currently part of the Edison Director Network, an initiative of growth equity firm Edison Partners, which seeks to bring C-level operational expertise to its portfolio companies in the form of board director, mentor or consultant.
 
“I love the engaged mentor role, where I am active in giving specific guidance regarding growth and other issues to the CEO, as well as a general strategic and operating mentor to the company,” Bailye explained. “I frequently focus young entrepreneurs to watch cost/revenue timing; and don’t plan only for the best outcomes. Along those same lines, understand that cash is king, so plan ahead. And remember, Rome was not built in a day, but it was built on a LOT of VERY LONG/HARD days.”
 
Bailye benefited from an Edison Partners investment while he was growing Dendrite, and later became an active investor himself. In addition to investing in NJTC’s Venture Fund, which was founded in 2001 and completed 33 portfolio investments during its active investment period, Bailye founded Woomera Partners last year to invest in and contribute knowledge to healthcare-focused technology and service businesses. To date, Woomera has invested in two New Jersey businesses – Systech International, a global leader in brand protection technologies located in Princeton, and Bergen Medical Products, Inc., a Cedar Knolls-based medical device manufacturer. The EDA is a limited partner in both Edison Partners and NJTC Venture Fund.

“As an executive, an investor and a mentor, John Bailye has consistently helped to grow New Jersey’s technology industry,” said EDA Chief Executive Officer Melissa Orsen. “New Jersey continues to benefit from his expertise and his commitment to nurturing the State’s future innovators.” 

@NJEDATech spoke with Bailye about his experience as an entrepreneur and investor in New Jersey:
 
You founded Dendrite in Australia, but moved to New Jersey one year later. What initially attracted you to the State?  What unique benefits does New Jersey offer to emerging companies?
We came to New Jersey because we served the pharmaceutical industry and New Jersey was largely their home. We used a computer language C++, very modern at the time, and New Jersey had a lot of technical skills centered on that “new” language. So while others were going to San Francisco, we chose New Jersey for its unique advantages.
 
We know that venture capital was an important part of Dendrite’s early growth and expansion. Does Dendrite’s success help to fuel your commitment as an Angel investor? What qualities do you look for in a company?
Absolutely!  We found capital through Edison and the venture community when VC’s were generally staffed with operating people, not investment or financial people. We wanted, and received, operational insight, the help to “see around corners” and to recognize the “Peter Principle” which plagues most growing companies, as well their investments. It was a valuable lesson. I try to deliver the same today in my angel and Woomera investments. 
 
When reviewing the angel opportunities, I always look first at whether the idea is big or clever enough to “move the needle.” Then the team – and in particular look at what motivates them, how big they dream and whether they take advice well. Do they want a big piece of a small cake or a large piece of a very BIG platter?
 
What recommendations do you have for other serial entrepreneurs thinking about giving back to the emerging entrepreneurs?  
These days, New Jersey has a real depth of serial entrepreneurs. Often, after several successful companies, the fire that drove the initial ventures for the entrepreneur, and the willingness to work 80 hours a week is not the current issue, but retirement is out of the question. So mentoring becomes attractive. 
 
The satisfaction of being regularly engaged (but not on a daily basis) in the entrepreneurial fire is like an injection of adrenaline. To know you are helping a new company reach its higher potential is a very, very worthwhile use of time and experience.
 
Remarkably, the knowledge serial entrepreneurs have acquired is much broader than the industry they are in. So they can help new entrepreneurs avoid traps and problems that are generic to most fast-growth companies with very ambitious leaders. 
 
How do you recommend that entrepreneurs find individuals like yourself who have built successful NJ businesses and are now willing to provide mentoring and support? 
Great question! We are not on every street corner!  Initially, ask yourself if you want the answer to a current problem or want a mentor to help you grow.  They are different things.  If the answer is really the latter, don’t expect the help to be free – are you ready to sign up? 
 
Write a half-page bio and a one page summary business plan. Then contact NJTC and join. Go to events and ask others – a good list will appear. 
 
For more information about resources available to support New Jersey’s technology industry, visit https://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.

The New Jersey Economic Development Authority's next public Board Meeting will take place at 10:00 a.m. on Thursday, July 9, 2015 at 36 West State St., Trenton, NJ 08625. A copy of the proposed agenda can be found prior to the meeting at https://www.njeda.gov/eda_board_information/agenda. Following the Board Meeting, minutes and the full agenda will also be available at https://www.njeda.gov/eda_board_information/agenda.

TRENTON (July 1, 2015) – The New Jersey Economic Development Authority (EDA) today kicks off a series highlighting investors and entrepreneurs who are making a difference to New Jersey companies at all stages of growth. 
 
First up is Jeff Stonberg, who invested nearly $1 million in Edge Therapeutics through the State’s Angel Investor Tax Credit Program. Edge Therapeutics, based in Berkeley Heights, is a biotechnology company that discovers, develops and seeks to commercialize novel hospital-based therapies capable of transforming treatment paradigms in the management of acute, life-threatening conditions. The company believes EG-1962, its lead product candidate, if approved, can fundamentally improve patient outcomes and transform the management of aneurysmal subarachnoid hemorrhage, which is bleeding around the brain due to a ruptured brain aneurysm.
 
Administered by the EDA in consultation with the New Jersey Division of Taxation, the Angel Investor Tax Credit Program offers a 10 percent refundable tax credit against New Jersey corporation business or gross income tax for qualified investments in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state. The program is available to all eligible taxpayers, including out-of-state investors such as Stonberg. As an out-of-state resident, Stonberg received a refund check from New Jersey for 10 percent of the money he invested in Edge Therapeutics. 
 
To date, more than 200 investments have been made through the Angel Investor Tax Credit Program, representing an infusion of nearly $75 million into New Jersey technology and biotechnology businesses. 

@NJEDATech spoke with Stonberg about his positive experience investing through the Angel Investor Tax Credit Program and how it benefitted Edge Therapeutics:
 
Why did you choose to invest in Edge Therapeutics through the program? 
The investment opportunity, as well as the availability of the program, was brought to me by Alex Forschner, Senior Managing Director of Merchant Capital at the Maxim Group, Inc. in New York. The company, Edge Therapeutics, Inc., had already done its part to process with the EDA.
 
How did Edge Therapeutics benefit from the investment made through the program? 
With the added financial leverage, I invested more in the company than I might have otherwise.  The additional amount exceeded the 10% that was returned to me through the program.
 
What did you most appreciate about the Angel Investor Tax Credit Program?
This kind of investing is very risky. The fact that another significant investor, in this case the State of New Jersey, had selected the company for its investment, was an additional, and meaningful, form of validation of the company, its management, and its potential to be successful. 
 
Editor’s Note: In addition to the Angel Investor Tax Credit Program, the EDA supported Edge through a variety of state resources including the Edison Innovation Fund, a suite of financing instruments designed to develop, sustain, and grow biotechnology and technology businesses in the Garden State.
 
What advice do you have for others who may be considering investing through the program?
The process is complex, but the Authority staff, in my case David Ackerman, is extremely helpful. Having been through it, I can see that the process is framed in a sensible way and that the patient population, the company, the State and investors will all benefit. It is an innovative and sustainable program as long as the EDA continues to underwrite companies such as Edge. 
 
The EDA recently launched a webinar via www.njeda.gov/AngelTaxCredit for people to learn more about the program. The site also features a newly revised application and Frequently Asked Questions.  Inquires can be emailed to AngelTaxCredit@njeda.com, and an EDA Venture Officer will respond to the request in a timely fashion.
 
To learn more about resources available to New Jersey’s emerging technology and life sciences companies, visit https://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.

TRENTON (June 25, 2015) – Continuing New Jersey’s long-standing tradition of being a leader in technology, companies in the Garden State are seen as innovators in addressing today’s health threats.  With the onset of new viruses, companies such as VaxInnate Corporation are racing to stay ahead by developing state-of-the-art vaccinations.
 
Cranbury-based VaxInnate focuses on preventing infectious diseases.  VaxInnate’s proprietary toll-like receptor technology genetically fuses vaccine antigens to the bacterial protein flagellin, creating a strong immune response.  VaxInnate is able to use a low-cost, highly scalable recombinant DNA technique that doesn’t rely on age-old egg-based manufacturing to produce vaccines.  The company is currently employing this technology in its mid-stage clinical programs for seasonal and pandemic influenza, and plans to leverage it as it advances earlier-stage candidates for dengue and other serious infectious diseases.
 
In 2011, VaxInnate was awarded a $118 million, five-year contract from the Biomedical Advanced Research and Development Authority to fund the development of the seasonal and pandemic flu vaccines.  The company has also benefitted from New Jersey’s Technology Business Tax Certificate Transfer (NOL) Program over the last six years. This has allowed the company to sell unused New Jersey net operating losses and research and development tax credits to unrelated profitable corporations to raise cash to finance their growth and operations. 
 
Administered by the New Jersey Economic Development Authority (EDA) and the New Jersey Department of Treasury's Division of Taxation, up to $60 million is made available through the NOL program annually to support qualified technology and life sciences companies.
 
Applications for funding through the State’s Fiscal Year 2016 allocation must be submitted by June 30.  Applications can be found at https://www.njeda.gov/nol. 
 
@NJEDATech asked VaxInnate President and Chief Executive Officer Wayne Pisano about the company’s experience in New Jersey and its plans for the future.   
 
Why did you choose to grow your company in New Jersey?
VaxInnate was founded in 2001 by Yale University professors, Ruslan Medzhitov and Richard Flavell, who are also Howard Hughes Medical Institute investigators and leaders in the field of innate immunity. In 2004, our leadership team decided to headquarter the company in New Jersey to gain access to the highly educated and experienced pool of talent in New Jersey. This resource has proven especially beneficial as we’ve grown to employ approximately 55 employees, most of whom have advance degrees in the sciences. 
 
In addition to talent, New Jersey’s chapter of the Biotechnology Industry Organization has been an incredible resource, providing valuable insights and networking opportunities. From a financial point of view, New Jersey offers convenient access to the New York financial community, as well as a variety of state programs, which provided valuable non-dilutive capital to VaxInnate. With these resources, VaxInnate was able to secure approximately 20,000 square feet of laboratory and office space, including molecular and cell biology labs, cell culture facilities, a protein pilot plant and analytical laboratory space. 
 
How did VaxInnate benefit from the NOL program?
VaxInnate has received approximately $8.5 million through the NOL Program. These funds have been used to hire highly educated and experienced scientists and employees, and to advance our research and development programs. Today we have two products in mid-stage clinical development – vaccines for seasonal and pandemic influenza – and several earlier stage candidates. From this strong financial foundation, we have also been able to dedicate resources to the pursuit of new indications to further strengthen our pipeline.
 
What makes VaxInnate’s technology different from other companies’ that develop vaccines?
We believe our proprietary recombinant vaccine production technology offers significant benefits over traditional manufacturing methods, including reliability, cost effectiveness and speed, which can be essential when reacting to unexpected influenza strain drifts, as we witnessed earlier in 2015.
 
What is your company’s biggest success to date?
From a technology perspective, the recombinant vaccine production method we have developed has proven extremely efficient and flexible. From a pipeline perspective, one may point to our seasonal influenza quadrivalent product, which is currently in Phase 2 and has demonstrated encouraging results to date. However, our biggest success in undoubtedly the dedicated team of scientists, executives and administrative personnel who have persevered, adapted and succeeded in an extremely competitive industry. Without this team, VaxInnate would not have developed and implemented the technology that is the foundation of our now growing pipeline.
 
What’s in store for VaxInnate?
VaxInnate recently announced the reprioritization of resources in research and clinical development to help advance the Company’s preclinical initiatives. This should allow the company to further build its pipeline outside of its lead influenza programs, to include vaccines against dengue and Clostridium difficile, as well as other infectious disease targets. Several years from now, we hope VaxInnate will have a much enhanced pipeline, and perhaps a larger team to support the new research and development efforts.

For more information about resources available to New Jersey’s life sciences companies, visit https://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.  
 

TRENTON (June 18, 2015) – Those interested in taking advantage of New Jersey’s Angel Investor Tax Credit Program can now access a webinar via www.njeda.gov/AngelTaxCredit to learn more about the program. The site also features a newly revised application and Frequently Asked Questions.
 
Administered by the New Jersey Economic Development Authority in consultation with the New Jersey Division of Taxation, the program offers a 10 percent refundable tax credit against New Jersey corporation business or gross income tax for qualified investments in an emerging technology business with a physical presence in New Jersey and that conducts research, manufacturing, or technology commercialization in the state. The program is available to all eligible taxpayers, including out of state investors.
 
To qualify, technology businesses must employ fewer than 225 employees, 75 percent of whom must work full-time in New Jersey. Businesses must also conduct at least one of the following activities in New Jersey: incur qualified research expenses; conduct pilot scale manufacturing; or commercialize an eligible technology.  Eligible technologies include: advanced computing, advanced materials, biotechnology, electronic devices, information technology, life sciences, medical devices, mobile communications, and renewable energy technology.
 
A maximum tax credit of $500,000 is allowed per each qualified investment, and the total program is subject to an annual cap of $25 million.
 
Applications must be submitted within one year of the date of investment. Completed applications, with all required documentation, must be submitted by November 15, 2015 in order to be considered for approval for a 2015 tax credit certificate. Any applications received after this date will be considered and reviewed for a potential tax credit certificate for 2016.
 
Since the EDA began accepting applications to the program in July 2013, more than 200 investments have been approved, representing the injection of nearly $75 million of capital into New Jersey technology and life sciences companies.
 
Any questions or inquires can be emailed to AngelTaxCredit@njeda.com.  An EDA Venture Officer will respond to the request in a timely fashion.
 
To learn more about resources available to New Jersey’s emerging technology and life sciences companies, visit https://www.njeda.gov/tls and follow @NJEDATech on Twitter and LinkedIn.