STATE SEEKS INDUSTRY SUPPORT IN DEVELOPMENT OF NEW TECHNOLOGY ACCELERATOR PROGRAM
TRENTON, N.J. (Aug. 9, 2011) – In support of the Christie Administration’s commitment to entrepreneurial development within the technology industry, the New Jersey Economic Development Authority (EDA) today announced a request for interest and ideas from the State’s technology community to help advance a technology accelerator program. The initiative will aim to provide a competitive environment for technology-focused entrepreneurs to showcase their products, ideas and business acumen in a mentor driven program for an opportunity to receive funding.
“The EDA is actively looking to partner with interested stakeholders to move forward with this program that is modeled on initiatives in other states that have successfully engaged the community to support promising entrepreneurs,” said EDA CEO Caren S. Franzini. “We look forward to hearing from New Jersey’s technology community on how to best craft a program that will invest financial and technical assistance resources in order to advance novel ideas and business models, promote early stage business ventures and accelerate the growth of technology businesses in the State.”
The outreach to the State’s technology community specifically requested that interested parties submit an overview of how the New Jersey model could be developed based on the following integral components
- Overall structure of the initiative, including overview of all partners and their role in the initiative. Overview should include partners’ experience and success in investing in early stage business models;
- Advocacy role of the EDA as a State partner in advancing the initiative;
- How this initiative will leverage private matching dollars;
- Ability of the partners to support businesses formed in New Jersey as well as attracting business ventures from other States;
- Ability of the partners to engage the technology service industry in providing mentorship opportunities.
The program will be funded with $450,000 over three years through the EDA, which has a history of successful investment in the technology and life sciences sector. EDA’s investments are expected to earn a reasonable rate of return, and funds in which the EDA invests should demonstrate an ability to leverage private investment dollars at a minimum ratio of 3:1. Through its Edison Innovation Fund, the EDA has provided $27.7 million in direct, equity-like investments to 45 technology and life sciences companies that have created an estimated 1,143 new jobs and leveraged over $118 million in total investment in New Jersey’s economy. The EDA recently enhanced its Edison Innovation Fund portfolio to benefit early stage, emerging technology and life sciences companies that have attracted capital through angel and venture capital investors.
To further help New Jersey regain and grow its reputation as a home for innovation, Governor Christie increased available funds from $30 million to $60 million through the innovative Technology Business Tax Certificate Transfer Program in the FY 2012 budget. The Governor also recently signed into law a measure to increase the R&D credit to 100 percent. Previously, R&D spending in New Jersey was used to offset up to 50 percent of corporate tax liability. The new law will allow critical and economically-beneficial R&D spending in the state to be used to offset all of the corporate tax liability.
For more information, visit https://www.njeda.gov/techaccelerator
Submissions of interest or a framework for ideas for the technology accelerator initiative should be sent to TechAccel@njeda.com by September 15, 2011. For questions on the request for interest, contact EDA Director of Technology & Life Sciences Kathleen Coviello at (609) 858-6713.
To learn more about opportunities for business growth throughout New Jersey, visit the state’s business portal at www.NewJerseyBusiness.gov.