$1.25 Million Available to Support Startups Engaged with Federal SBIR/STTR Programs
 

TRENTON, N.J. (August 10, 2021) – The New Jersey Commission on Science, Innovation and Technology today announced that it will open applications for a $1.25 million round of grant funding through its New Jersey Small Business Innovation Research (SBIR) and Small Business Technology Transfer Program (STTR) Direct Financial Assistance Program on Monday, August 16, 2021. New Jersey startups can apply online at https://www.njeda.gov/csit. The program provides a $25,000 to $50,000 funding match to New Jersey-based companies that have received federal SBIR/STTR grants.  

The federal SBIR and STTR grant programs provide more than $3 billion each year to small businesses in a variety of technology and life sciences areas that propose innovative ideas that meet specific federal research and development (R&D) needs. The SBIR program enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. The STTR program funds cooperative R&D partnerships between small businesses and research institutions such as universities, federal R&D centers, or non-profits. The programs are open to U.S.-based, for-profit small businesses with fewer than 500 employees.

“Under Governor Phil Murphy’s leadership, New Jersey is quickly recapturing its role as a leader in innovation thanks to startups such as those involved with the federal SBIR/STTR programs,” said CSIT Chairman Gunjan Doshi. “CSIT is committed to ensuring that our state’s entrepreneurs have access to every available resource to best position themselves for success. The New Jersey SBIR/STTR Direct Financial Support Program has a proven track record of doing just that.”

Doshi noted that, through two prior rounds of the New Jersey SBIR/STTR Direct Financial Assistance Program, CSIT has awarded a total of $825,000 to 29 New Jersey companies.

This third round of the program will offer $1.25 million in grants to New Jersey small businesses in two program components. The first component (Direct funding) will provide $25,000 grants to up to 30 small businesses that have received a federal SBIR/STTR Phase I, Fast-Track or Direct to Phase II award/contract. The grant is aimed at helping awardees increase intensity of research, strengthen commercialization plans, cover operational expenses, and become more competitive for Phase II funding. The second component (Bridge funding) will provide $50,000 grants to up to ten NJ small businesses that have successfully completed Phase I and have applied for Phase II of the federal SBIR/STTR program. The grant will enable the awardees to maintain operations while waiting on Phase II awards and cover general operational expenses directly related to the project/product for which a Federal Phase II award is being sought.

“We are pleased to be able to significantly increase the amount of funding we are providing through this latest round and look forward to welcoming new startups into the program as a result,” said CSIT Executive Director Judith Sheft.

Sheft encouraged entrepreneurs that are interested in applying to the New Jersey SBIR/STTR Direct Financial Assistance Program to attend an August 19 information webinar to learn about the application process. A link to the webinar can be found at ttps://www.njeda.gov/event/csit-round-3-sbir-sttr-grant-assistance-program/. A recording of the webinar will also be available on CSIT’s website.

The application, which will be available at https://application.njeda.com/CSIT, will be open until October 8, 2021 at 4:00 p.m. EST.

“Startups within the innovation ecosystem are important drivers of job creation and employment and their success is absolutely essential to the vibrancy of New Jersey’s economy,” said State Senator Paul Sarlo. “Funding these early-stage companies through programs like the New Jersey SBIR/STTR Direct Financial Assistance Program will not only benefit the individual entities, but also their communities, the state, and the global marketplace at large.”

In keeping with the Governor’s vision for inclusive economic growth, applications from businesses located in an Opportunity Zone-eligible census tract, minority- or woman-owned businesses or businesses with technology coming out of New Jersey universities are all eligible for bonus points with respect to the scoring criteria. Additionally, applicants who are winning a federal award for the first time will also receive a scoring bonus.

“New Jersey offers startups the full package when it comes to reasons to grow here – close proximity to numerous world-class universities, a diverse and highly-educated pool of talented workers, and an innovation ecosystem that supports them from the earliest stages through valuable programs such as this one,” said Assemblyman Christopher DePhillips.

About CSIT
In August 2018, Governor Murphy signed legislation re-establishing the former New Jersey Commission on Science and Technology as the CSIT. Comprised of representatives from the public and private sectors, as well as academia, the Commission is tasked with leading the way in promoting the state as a home for academic and technological research, development, and commercialization.

To learn more about state resources available to New Jersey entrepreneurs and early-stage companies,
visit https://www.njeda.gov/csit or follow @NewJerseyEDA on Twitter, Facebook, LinkedIn and Instagram.

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TRENTON, N.J. (August 5, 2021) – The New Jersey Commission on Science, Innovation and Technology (CSIT) today announced that it has awarded a total of $748,000 in seed grant funding to 10 New Jersey clean technology-focused startups through its Clean Tech Seed Grant Program. The program, which is funded by the New Jersey Board of Public Utilities (NJBPU), is designed to help accelerate development and innovation of clean technologies by furthering research and development (R&D) within New Jersey’s startup economy. The Clean Tech Seed Grant Program was created in partnership with the New Jersey Economic Development Authority (NJEDA).

The awardees are each working on projects that involve developing or testing clean technologies intended to recapture or avoid emissions of greenhouse gases and/or criteria pollutants, or to enable such avoidance or recapture. Funding through the program will help the startups continue their work toward the proof of concept and prototyping stages, at which point they can more readily attract outside investors and, in some cases, begin to generate revenue. The funding is being provided through NJBPU’s Clean Energy Program.

“New Jersey’s innovation ecosystem stands at the forefront of the global transformation toward a clean energy future,” said CSIT Executive Director Gunjan Doshi. “Critical funding provided through the Clean Tech Seed Grant Program will help propel the projects created by these 10 startups toward commercialization and into the hands of consumers within the worldwide clean technology marketplace.”

The following startups were each awarded approximately $75,000. The exact grant sizes are noted in parentheses.

  • Andluca Technologies Inc., located in Princeton, is a spin-out of Princeton University that is developing solar-powered smart glass technology. ($74,969)
  • Arbela Laboratories, located in Randolph, is creating a methanol-fed Pichia platform designed to increase the scale and reduce the costs of biomanufacturing. ($73,000)
  • Eion NJ Corporation, located in Princeton, is developing a specialty fine-grained mineral material that rapidly captures and stores carbon dioxide when applied to agricultural soils. ($75,000)
  • Farm to Flame Energy, located in Kearny, provides scalable, end-to-end electricity generation systems using biomass for communities in underdeveloped countries. ($74,995)
  • Green Blu, located in Hamilton, is developing a solar thermal energy-powered brine separation technology for use in desalination, agriculture, and water industries. ($75,000)
  • NextGen Battery Technologies, LLC., located in Somerset, is developing a high-voltage, non-flammable solid-state electrolyte for lithium batteries. ($74,939)
  • Princeton NuEnergy, located in Bordentown, is developing a battery recycling technology to recycle and reuse used lithium-ion batteries from electric vehicles, portable electronics, and other energy storage devices. ($75,000)
  • RenewCO2, LLC., located in Cranford, is developing an electrochemical process that converts carbon dioxide to plastic precursors and other value-added chemicals conventionally sourced from fossil fuels. ($75,000)
  • SunRay Scientific, LLC., located in Eatontown, is commercializing an advanced material adhesive for use in electronics and semiconductor packaging. ($75,000)
  • WeSolar CSP Inc., located in Princeton, designs and builds scalable and modular Concentrated Solar Power (CSP) plants for energy and heating solutions for government, utilities, corporations, industry and community/micro-grids. ($75,000)

Seventy percent of the awardees were businesses located in an Opportunity Zone-eligible census tract, minority- or woman-owned businesses, and/or businesses with technology coming out of New Jersey universities.

“Under Governor Murphy’s leadership, New Jersey is recapturing its role as a leader in innovation in a diverse, inclusive, and equitable manner,” said NJEDA Chief Executive Officer Tim Sullivan. “As we begin to see success stories that result from the funding announced today, we look forward to watching the impact these companies will have both on the international stage and here at home as they expand their footprint and create high-paying jobs.”

CSIT Executive Director Judith Sheft noted that the Commission received nearly two dozen applications for this inaugural round of funding and expects to launch a second round later this year with funding that has already been approved by the NJBPU.

“The high-level of interest we received during the inaugural round of our Clean Tech Seed Grant Program is indicative of both the vibrancy of our innovation ecosystem and the need for seed funding that all startups face,” Sheft said. “The NJBPU and the NJEDA have been tremendous partners to CSIT in helping to cultivate opportunities for very early-stage New Jersey companies in the clean energy space and we are pleased we will be able to reach even more young companies in the months ahead.”

In January 2020, Governor Murphy unveiled the state’s Energy Master Plan, which outlines key strategies to reach the Administration’s goal of 100 percent clean energy by 2050. In May 2018, Governor Murphy’s Executive Order No. 28 directed the NJBPU, in partnership with other state agencies, to develop this statewide clean energy plan and shift away from energy production that contributes to climate change. The Energy Master Plan laid out ways to fuel the clean technology economy through workforce training, investments in developing clean energy knowledge, and the growth of world-class R&D.

“Building and strengthening New Jersey’s clean energy economy has been a priority for Governor Murphy throughout his administration as we work to reduce the state’s dependence on fossil fuels,” said NJBPU President Joseph L. Fiordaliso. “NJBPU is proud to support the Clean Tech Seed Grant Program and to fund early-stage companies that are developing vital technologies to achieve this goal. Startups within our innovation economy play a key part in creating clean technologies that will enable us to reach the Governor’s goal of 100 percent clean energy by 2050.”

New Jersey State Senator Robert Singer and Assemblyman Andrew Zwicker are among the CSIT members who helped bring the Clean Tech Seed Grant Program to fruition.

“Through innovative programs like this one, we are reaffirming and upholding our commitment to ensuring that New Jersey entrepreneurs have every available resource to fuel the growth of their companies,” Senator Singer said. “By connecting these 10 startups with access to precious seed capital, we are helping them work toward commercialization and reach a point where they can attract outside investors and begin to compete in the global economy.” 


“As both a scientist and the Chairman of the Assembly’s Science, Innovation & Technology committee, I know the value that seed funding brings to young, innovative startups” Zwicker said. “I applaud each of our awardees for the ground-breaking work they are doing and am pleased to play a role in furthering their success.”


About CSIT

In August 2018, Governor Murphy signed legislation re-establishing the former New Jersey Commission on Science and Technology as the CSIT. Comprised of representatives from the public and private sectors, as well as academia, the Commission is tasked with leading the way in promoting the state as a home for academic and technological research, development, and commercialization.


Early-Stage Companies Have Until June 30 to Apply to Sell their Net Operating Losses for Cash

TRENTON, N.J. (June 25, 2021) – The New Jersey Economic Development Authority (NJEDA) today reminded New Jersey’s emerging technology and life sciences companies that they have until June 30 to apply to the state’s Net Operating Loss (NOL) Program. The application can be found at https://www.njeda.gov/nol/.

New Jersey’s NOL Program enables the state’s early-stage technology and life sciences companies to sell their New Jersey net operating losses and unused research and development (R&D) tax credits to unrelated profitable corporations for cash. Hailed as a lifeline for companies that have not yet reached profitability, the capital raised through this program can be used for costs including, but not limited to, the expenses of fixed assets, such as the construction, acquisition and development of real estate; materials; start-up; tenant fit-out; working capital; salaries; and R&D expenditures. The NJEDA and the New Jersey Department of Treasury’s Division of Taxation jointly administer the program.

To date, more than $1.07 billion in funding has been distributed to over 550 technology and life sciences companies since the program’s inception in the late 1990s. In 2020, 49 companies were approved to sell a combined $54 million through the program. The average award for companies approved to sell their net operating losses through the program last year was $1.1 million.

The NOL Program was expanded in January 2021, when Governor Phil Murphy signed the New Jersey Economic Recovery Act of 2020. Part of the Act increased the program’s annual cap from $60 million to $75 million. It also increased the lifetime cap for an individual applicant from $15 million to $20 million.

“Our top priority as we continue to recapture New Jersey’s role as a leader in innovation is ensuring that emerging companies have access to the capital they need to grow and thrive in our state,” said NJEDA Chief Executive Officer Tim Sullivan. “Entrepreneurs frequently cite the enormous impact of our NOL Program on their companies’ success. Now, thanks to enhancements made through the New Jersey Economic Recovery Act of 2020 by Governor Murphy, we will be able to support even more early-stage businesses in the years ahead.”  

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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NJEDA Chief Economic Growth Officer Brian Sabina and Stockton University President Dr. Harvey Kesselman sign an MOU enabling the NJEDA to provide $200,000 in funding plus staff resources to Stockton University for its esports initiative.
Photo credit: Stockton University

TRENTON, N.J. (June 22, 2021) – The New Jersey Economic Development Authority (NJEDA) and Stockton University signed a memorandum of understanding (MOU) today enabling the NJEDA to provide $200,000 in funding plus staff resources to Stockton University for its esports initiative, which includes Stockton’s establishment of an Esports Innovation Center at the university’s Atlantic City campus. The Center is expected to help to advance the goal of establishing Atlantic City as a hub for the rapidly growing esports industry.  

“Esports presents a rare chance to cultivate an entirely new industry that will create good paying, skilled jobs, along with an opportunity to build industry leadership,” said New Jersey Lieutenant Governor Sheila Y. Oliver. “With a renowned higher education partner like Stockton University, and our unparalleled pool of technology talent I am confident that New Jersey is well-equipped to support the rapidly-growing esports industry and the economic potential it can offer our residents and small businesses.”

The esports industry has swiftly grown in popularity in the United States, with total revenues in North America projected to reach $250 million this year and a viewing audience of 57 million people. By 2025, the industry is expected to reach $9 billion globally.

The esports industry can help diversify New Jersey’s tourism and entertainment sector and be a source of new high-quality, high-wage jobs, such as software engineers, product developers, and content provision/event production roles. The industry is large and rapidly growing, with total esports employment in the US nearly doubling from Q2 2019 to Q2 2020.

“Creating new innovation-focused spaces and centers of knowledge where industry stakeholders can collaborate and gain expertise is an important element of catalyzing the State’s innovation economy,” said NJEDA Chief Economic Growth Officer Brian Sabina. “The NJEDA is proud to support this important project, and we look forward to working with Dr. Kesselman and the team at Stockton University to build New Jersey’s leadership in this emerging and exciting industry.”

Thanks to New Jersey’s strong technology infrastructure and innovation ecosystem, the esports industry has already taken root in the state, and the Esports Innovation Center will build on that momentum to establish New Jersey, and Atlantic City, as the epicenter of esports growth. This Center will also be a huge step forward in creating the most diverse innovation ecosystem in the country and will help to close the racial and gender wage and employment gaps.  

“The new Esports Innovation Center will work with Stockton and industry partners to position Atlantic City and New Jersey as esports leaders and help shape the future of the esports landscape,” said Stockton University President Dr. Harvey Kesselman. “Esports industry partners will have the ability to become members of the Esports Innovation Center and join in the center’s research, events, and activities.”

Among other activities, the Center will focus on catalyzing collaborative technology innovation, supporting workforce development within the esports industry, positioning New Jersey and Atlantic City as an esports leader through events and thought leadership, identifying and promoting best practices for regulating wagering on esports and ensuring integrity in competitions, and promoting diversity and inclusion, as well as healthy gaming practices, as essential components of esports culture.

The Esports Innovation Center will also work with the Division of Gaming Enforcement and independent bodies that govern integrity in competitions to position New Jersey as a national leader in regulation and integrity practices for esports and will promote diversity and inclusion, as well as healthy gaming practices, in the esports industry.

Supporting the Esports Innovation Center is part of Governor Murphy’s commitment to building a stronger, fairer New Jersey economy that creates opportunities for all New Jersey residents, and NJEDA’s wider strategic effort to grow New Jersey’s innovation, sports wagering, and fintech ecosystems. In addition to the MOU with Stockton University, the NJEDA concurrently approved a separate agreement with New Jersey City University (NJCU) to support the Sports Wagering and Financial Technology Workforce Development and Innovation Center at NJCU. This Center will provide an incubator for the sports wagering and fintech industries and act as a connector between industry, academia, and relevant State agencies to grow and support innovation in sports wagering technology and fintech.

More information about the Esports Innovation Center and Stockton University’s other esports programs is available at https://sites.google.com/stockton.edu/stockton-esports/home.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (June 3, 2021) – The New Jersey Economic Development Authority (NJEDA) announced today that VentureWell’s ASPIRE Program has become the third accelerator approved to participate in its NJ Accelerate program. NJ Accelerate was created by the NJEDA last year to grow New Jersey’s innovation ecosystem by promoting greater participation by Garden State entrepreneurs in qualified accelerator programs throughout the United States. It is also designed to incentivize graduate companies from approved accelerators to consider locating in NJ, as well as to showcase the talent in Garden State accelerators on a national stage. More information about NJ Accelerate can be found at https://www.njeda.gov/njaccelerate.

An accelerator is a fixed-term, cohort-based training experience for startups that offers educational and mentorship programs and facilitates connections to venture capitalists, angel investors, mentors, customers, industry experts, and corporate executives who can help early-stage companies grow. Many accelerators also provide investment capital and office, lab, or prototyping space.

Through NJ Accelerate, the NJEDA will match investments made by an approved accelerator into startups that locate in New Jersey within six months after graduating from the participating accelerator’s program. NJEDA’s match will be in the form of a direct loan up to $250,000. A five-percent match bonus is available for companies that are certified as women- or minority-owned in New Jersey. The NJEDA will also provide rent support for up to six months if a company locates in an approved NJ Ignite collaborative workspace.

VentureWell joins Cleantech Open Northeast and Morgan Stanley Multicultural Innovation Lab as the third accelerator approved to participate in NJ Accelerate to date.

“Every New Jersey startup brings a unique idea or perspective to our state’s vibrant innovation ecosystem,” said NJEDA Chief Executive Officer Tim Sullivan. “In order to recapture New Jersey’s role as a leader in innovation, we must continue to connect these young companies with tools to address their individual needs. We’re quickly scaling up NJ Accelerate so that entrepreneurs can leverage resources offered by well-known and highly-regarded accelerators throughout the country while reaping the benefits of locating in the Garden State.”

Massachusetts-based VentureWell is a nonprofit that supports early-stage science- and technology-based inventors driven to solve the world’s biggest challenges. Its E-Team Grant Program helps science- and engineering-based student teams from across the nation commercialize their high-impact innovations. During ASPIRE, VentureWell’s third and final phase of the E-Team Grant Program, startup companies participate in an intensive program that prepares them for the investments and partnerships necessary to launch their ventures. Mentors-in-residence work one-on-one with startups to simulate due diligence conversations and integrate feedback into deal room materials in real-time.

For each cohort of ASPIRE, VentureWell selects 10-15 dedicated science- and engineering-based startups from across the nation that are launching inventions. Upon completion of all three stages of the E-Team Grant Program, the accelerator may provide investments up to $50,000. All participants tap into VentureWell’s large mentor and alumni network, which includes over 5,000 teams of entrepreneurs across all programs. VentureWell was founded with support from The Lemelson Foundation, and has received funding from Qualcomm, the National Science Foundation, the United States Department of State, the United States Agency for International Development, and the Bill & Melinda Gates Foundation, among many others.

“The E-Team Grant Program has a proven track record of supporting early-stage innovators with early funding and targeted training to move out of the labs and into the marketplace,” said Christina Tamer, Director of Programs – Early-Stage Innovation & Venture Development at VentureWell. “New Jersey is home to thousands of scientists and entrepreneurs working to develop life-saving and life-enhancing technologies. We are excited to invite them into our programs to support their efforts to commercialize their products as a result of our participation in NJ Accelerate.”

Since its inception in 2015, 117 startups have participated in ASPIRE and have raised over $189 million in follow-on funding since participating in the program. The E-Team Grant program overall, with its three stages, has supported 652 unique teams that have raised a total of $645 million. Participants have been recognized by national publications, including being listed on “Forbes 30 under 30” and being featured in the New York Times and National Geographic.

In addition to benefiting New Jersey startups, the NJ Accelerate program also provides exposure and funding for the approved accelerators. The NJEDA will disseminate information about VentureWell and encourage well-qualified companies to participate. In addition, the NJEDA will provide up to $25,000 per event capped at $100,000 in total sponsorship funding for accelerator-led events, such as Accelerator Demo-Days, cohort road shows, in-person classes, pitch competitions, and networking events held in New Jersey.

Accelerators and entrepreneurs interested in participating in the NJ Accelerate program are encouraged to contact the NJEDA at NJAccelerate@njeda.com. Additional information and detailed eligibility criteria for both accelerator programs and entrepreneurs are available at https://www.njeda.gov/njaccelerate.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.govand follow @NewJerseyEDA on Facebook, Instagram, Twitter, and LinkedIn.

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TRENTON, N.J. (May 19, 2021) – The New Jersey Economic Development Authority (NJEDA) today announced that it is accepting public feedback on the proposed rules for the expanded Angel Investor Tax Credit Program. Members of the public can read the draft rules and provide written feedback at www.njeda.gov/program-specific-feedback.

Originally established in 2013, the Angel Investor Tax Credit Program was expanded under the New Jersey Economic Recovery Act of 2020 (ERA). The rule proposal aligns with changes made to the program pursuant to P.L. 2019 c. 145 and implements changes in the ERA. This includes: an increase to the amount of tax credits available each year, an increase in the amount of tax credits available per qualified investment, the availability of bonus credits for qualified investments in targeted locations or in certified minority or women-owned businesses, and the ability for investors to receive a tax credit for  investments made in qualified venture funds.

“Ensuring early-stage companies have access to the financial resources they need to launch and grow is crucial to reestablishing New Jersey as the State of Innovation and achieving Governor Phil Murphy’s vision for a stronger, fairer recovery from COVID-19,” said NJEDA Chief Executive Officer Tim Sullivan. “By incentivizing angel investors to support New Jersey-based companies and providing bonuses for investments in minority- and woman-owned companies, the expanded Angel Investor Tax Credit Program will move us closer to our goal of building the most diverse, inclusive innovation ecosystem in the nation and driving long-term, equitable economic growth.”

The New Jersey Angel Investor Tax Credit Program incentivizes angel investment into emerging New Jersey technology businesses by authorizing the NJEDA to provide tax credits to investors based on percentage of a qualified investment made in a New Jersey business conducting research or engaged in pilot-scale manufacturing or technology commercialization in advanced computing, advanced materials, biotechnology, carbon footprint reduction technology, electronic device technology, information technology, life sciences, medical device technology, mobile communications technology, or renewable energy technology. In addition to being engaged in one of these eligible industries, the business receiving the investment must employ fewer than 225 employees, at least 75 percent of whom work in New Jersey.

In 2019, Governor Phil Murphy expanded the Angel Investor Tax Credit Program to increase the available tax credits on qualified investments and provide bonuses for investments in businesses located in targeted locations or certified minority or women-owned businesses.

Since inception of the Angel Investor Tax Credit Program, the NJEDA has approved more than 1,600 applications from investors representing more than $615 million in total qualified investment into emerging New Jersey technology companies.

The draft rule proposal reflects the 2019 legislative changes to the Angel Investor Tax Credit Program including an increase of the amount of the allowed tax credit from ten percent to twenty percent of an investor’s qualified investment in an emerging New Jersey technology business, as well as a five percent bonus tax credit for qualified investments in businesses located in a qualified Opportunity Zone or New Markets Tax Credit census tract or businesses that are New Jersey certified minority- or woman-owned. The maximum allowed tax credit amount will remain $500,000 for the tax credit vintage year for each qualified investment.

Pursuant to the ERA, the draft rules for the expanded Angel Investor Tax Credit Program also implement the ERA’s expansion of the program. This includes expanding the definition of a qualified investment to include an irrevocable contractual commitment to invest in a qualified venture fund. As defined in the draft rules, a qualified venture fund is a partnership, corporation, trust, or limited liability company that invests cash in a business during the early or expansion stages of a business in exchange for an equity stake in the business. This may include a venture capital fund, a family office fund, or a corporate investor fund; however, the fund must be administered by a professional manager and the qualified investment must be non-refundable and non-transferrable. In addition, the fund must commit to invest at least 50 percent of its committed funds in New Jersey-based businesses. Furthermore, a bonus of 5 percent is available if the fund invests 50 percent of its funds in New Jersey diverse entrepreneurs.

Members of the public can submit written feedback on the draft rules for the Angel Investor Tax Credit Program via www.njeda.gov/program-specific-feedback.

In addition to the expanded Angel Investor Tax Credit program, the ERA creates a suite of programs that includes tax credits to incentivize job creation, new construction, and revitalization of brownfields and historic properties; financial resources for small businesses; support for new supermarkets and healthy food retailers in food desert communities; new funding opportunities for early-stage companies in New Jersey; and support for the growing film and digital media industry. More information about these programs is available at https://njeda.com/economicrecoveryact.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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TRENTON, N.J. (May 11, 2021) – The New Jersey Commission on Science, Innovation and Technology (CSIT) today announced that it will host webinars in May and June for emerging innovation-focused companies in the Garden State that are interested learning how the federal Small Business Innovation Research (SBIR) and the Small Business Technology Transfer Program (STTR) can help fuel their growth. Representatives from the National Science Foundation and the United States Department of Defense will speak on May 26 and June 9 respectively to give an overview of their agencies’ SBIR/STTR programs. During these two-hour webinars, attendees will learn the benefits of engaging with these federal programs and get tips and advice for successfully applying for support. More information can be found at https://www.njeda.gov/csit.

The federal SBIR and STTR grant programs provide more than $3 billion each year to small businesses in a variety of technology and life sciences areas that propose innovative ideas that meet specific federal research and development (R&D) needs. The SBIR program enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. The STTR program funds cooperative R&D partnerships between small businesses and research institutions such as universities, federal R&D centers, or non-profits. The programs are open to U.S.-based, for-profit small businesses with fewer than 500 employees.

Introduction to the National Science Foundation (NSF) SBIR/STTR Program will be held on Wednesday, May 26, 2021 at 1:00 p.m. and Introduction to the Department of Defense SBIR/STTR Program will be held on Wednesday, June 9 at 1:00 p.m. Links to both webinars can be found at https://www.njeda.gov/csit. Additionally, a recorded version of the webinar and copy of materials presented will be made available on the CSIT webpage following the event. 

“Creating opportunities for young, innovative companies to leverage federal resources as they grow is key to fulfilling Governor Phil Murphy’s vision of recapturing New Jersey’s role as a leader in innovation,” said CSIT Executive Director Judith Sheft. “In 2020 alone, more than 125 early-stage New Jersey companies received SBIR/STTR awards totaling nearly $62 million. We encourage emerging businesses throughout the state to attend our upcoming webinars to discover how SBIR/STTR funding can help them develop and commercialize life-saving and life-enhancing technologies. This, in turn, will increase their competitiveness on the global stage and will lead to the creation of new jobs here in our state.”

The webinars announced today are the latest in a series of steps CSIT is taking to enhance the competitiveness of New Jersey businesses competing on the worldwide stage. CSIT’s Direct Financial Assistance Program awards grant funding to early-stage companies engaged with SBIR/STTR programs. Through two rounds of funding, CSIT has awarded a total of $825,000 to 29 New Jersey companies.

About CSIT
In August 2018, Governor Murphy signed legislation re-establishing the former New Jersey Commission on Science and Technology as the CSIT. Comprised of representatives from the public and private sectors, as well as academia, the Commission is tasked with leading the way in promoting the state as a home for academic and technological research, development, and commercialization.

To learn more about state resources available to New Jersey entrepreneurs and early-stage companies, visit https://www.njeda.gov/csit or follow @NewJerseyEDA on Twitter, Facebook, LinkedIn and Instagram.

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NJ Tech & Life Sciences Companies Can Now Apply to Sell Their Net Operating Losses
& Unused Research & Development Tax Credits for Cash

TRENTON, N.J. (May 6, 2021) – The New Jersey Economic Development Authority (NJEDA) today announced that it is currently accepting applications for its 2021 Net Operating Loss (NOL) Program, which was recently expanded as part of the New Jersey Economic Recovery Act of 2020. The NOL Program enables early-stage technology and life sciences companies in the Garden State to sell their New Jersey net operating losses and unused research and development (R&D) tax credits to unrelated profitable corporations for cash. The NJEDA is accepting applications online through June 30, 2021 at https://www.njeda.gov/nol.

Hailed as a lifeline for companies that have not yet reached profitability, the capital raised through this program can be used for costs including, but not limited to, the expenses of fixed assets, such as the construction, acquisition and development of real estate; materials; start-up; tenant fit-out; working capital; salaries; and R&D expenditures. The NJEDA and the New Jersey Department of Treasury’s Division of Taxation jointly administer the program.

The NJEDA will host an informational webinar about the NOL Program on Tuesday, May 18, at noon to review eligibility requirements with potential applicants. Webinar registration information can be found at https://www.njeda.gov/event/2021-nol-program-launch/. A recorded version of the webinar will be made available on the NJEDA’s webpage following the event at https://www.njeda.gov/nol.

To date, more than $1.07 billion in funding has been distributed to over 550 technology and life sciences companies since the program’s inception in the late 1990s. The average award for companies approved to sell their net operating losses through the program in 2020 was $1.1 million.

The NOL Program was expanded in January 2021, when Governor Phil Murphy signed the New Jersey Economic Recovery Act of 2020. Part of the Act increased the program’s annual cap from $60 million to $75 million. It also increased the lifetime cap for an individual applicant from $15 million to $20 million.

“Governor Murphy is committed to making New Jersey the State of Innovation with the most diverse and inclusive innovation ecosystem the nation.” said NJEDA Chief Executive Officer Tim Sullivan. “The NOL program plays an important role in achieving these goals by providing resources early-stage companies need to become profitable and prepare for long-term growth. The expanded program, which is now available, will support more companies that will contribute to New Jersey’s leadership in technology and life sciences innovation.”

In addition to being vital to emerging companies, the NOL Program also provides enormous benefits to the profitable companies that are buying the net operating losses and unused R&D tax credits. A profitable company can purchase tax credits at a discount, based on the market price at the time. These tax credits have traditionally traded somewhere between 88 and 94 cents on the dollar. Once purchased, the tax credits can then be applied to reduce the buyer’s state tax obligation. For example: a purchase of $1,000,000 of tax credit at 92 cents on the dollar would enable a buyer to decrease their New Jersey taxes payable by $1,000,000 for the price of $920,000, representing a savings of $80,000. The names of the buyers who chose to be publicly listed are on the NOL Program’s website. Entities interested in becoming a buyer through the NOL Program can visit the website https://www.njeda.gov/nol or reach out via email nol@njeda.com for more information.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram and LinkedIn.

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Cleantech Open Northeast Becomes Second Accelerator Approved Through the Program

TRENTON, N.J. (April 23, 2021) – The New Jersey Economic Development Authority (NJEDA) announced today that it has approved Cleantech Open Northeast to participate in its NJ Accelerate program. NJ Accelerate is designed to grow New Jersey’s innovation ecosystem by promoting greater participation by New Jersey entrepreneurs in qualified accelerator programs. It is also seen as a tool to showcase the talent in New Jersey to accelerators on a national stage and encourages newly forming accelerators to launch in the Garden State. Cleantech Open Northeast is the second accelerator approved for the program, following the approval of Morgan Stanley Multicultural Innovation Lab in December 2020. More information about NJ Accelerate can be found at https://www.njeda.gov/njaccelerate.

An accelerator is a fixed-term, cohort-based “boot camp” for startups that offers educational and mentorship programs and facilitates connections to venture capitalists, angel investors, mentors, and corporate executives who can help early-stage companies grow. Many accelerators also provide investment capital and office space.

NJ Accelerate, which launched in 2020, incentivizes accelerators from around the country to recruit participants in New Jersey. It also incentivizes the startups to locate in the Garden State after graduating from approved accelerators. Through NJ Accelerate, the NJEDA will match investment provided by approved accelerators with up to $250,000 in direct loans for startups that locate in New Jersey within six months after graduating from the approved programs. A five-percent bonus is available for companies that are certified as women-or minority-owned. The NJEDA will also provide rent support for up to six months if a company locates in an approved NJ Ignite collaborative workspace.

Cleantech Open Northeast is part of Cleantech Open, the world’s oldest and largest cleantech accelerator, and is managed by the Boston-based Northeast Clean Energy Council (NECEC) as the on-the-ground affiliate. Cleantech Open finds, funds and fosters entrepreneurs with big ideas that address urgent energy, environmental, and economic challenges. Cleantech Open provides the infrastructure, expertise and strategic relationships that turn ideas into successful global cleantech companies.

“Connecting New Jersey entrepreneurs with capital and mentorship they need to succeed not only strengthens the individual startups, but also bolsters our state’s innovation ecosystem as a whole,” said NJEDA Chief Executive Officer Tim Sullivan. “Governor Phil Murphy has long emphasized the critical role that New Jersey startups play in creating a green economy as we work toward his goal of 100% clean energy by 2050. Welcoming Cleantech Open Northeast into our NJ Accelerate program will enable the state’s clean energy-focused companies to leverage the knowledge of an established leader in their sector while maintaining their presence in the Garden State and benefitting from New Jersey’s many assets and resources.”

Since 2005, Cleantech Open Northeast has trained more than 450 startups through its annual accelerator program. Combined, these alumni have generated over $280 million in revenue and raised over $650 million in funds and employ more than 3,300 people. Cleantech Open Northeast, which has a network of more than 1,000 volunteers, unites the public and private sectors in its vision for making the nation’s cleantech sector a thriving economic engine. In Cleantech Open Northeast’s 2020 accelerator program, six of the 40 companies that completed the program—and two of the four companies that were awarded grants in the competition that was held following completion of the curriculum—were New Jersey based.

“Cleantech Open Northeast has been at the forefront of creating opportunities for early-stage, innovative companies in the cleantech space for more than 15 years,” said Cleantech Open Northeast Director Beth Zonis. “Our participation in NJ Accelerate will help us attract and welcome more startups from New Jersey’s growing clean energy innovation ecosystem.”

In addition to benefiting New Jersey startups, the NJ Accelerate program also provides exposure and funding for the approved accelerators. The NJEDA will disseminate information about Cleantech Open Northeast and encourage well-qualified companies to participate. In addition, the NJEDA will provide up to $25,000 per event capped at $100,000 in total sponsorship funding for accelerator-led events, such as Accelerator Demo-Days, cohort road shows, in-person classes, pitch competitions, and networking events held in New Jersey.

Accelerators and entrepreneurs interested in participating in the NJ Accelerate program are encouraged to contact the NJEDA at NJAccelerate@njeda.com. Additional information and detailed eligibility criteria for both accelerator programs and entrepreneurs are available at https://www.njeda.gov/njaccelerate.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Instagram, Twitter, and LinkedIn.

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Viewers Also Heard an Overview of the Recently-Proposed Black and Latino Diversity Seed Fund

TRENTON, N.J. (April 8, 2021) – Members of New Jersey’s innovation community had the opportunity to learn about public and private resources available to entrepreneurs of color during a “Removing Barriers for Diverse Entrepreneurs” Instagram Live discussion last night featuring New Jersey Economic Development Authority (NJEDA) Chief Executive Officer (CEO) Tim Sullivan and digitalundivided CEO Lauren Maillian. The chat also spotlighted the recently-proposed Black and Latino Seed Fund, which the NJEDA intends to create to drive capital to Black- and Latino-owned enterprises.

The innovation economy is facing a nationwide diversity crisis. According to Crunchbase, American companies raised a record-setting $150 billion in venture capital funding in 2020, but less than one percent of this went to Black-owned companies. The numbers are even worse for women. According to digitalundivided’s ProjectDiane, Black and Latina women received just 0.64 percent of total venture capital investment between 2018 and 2019.

During the event, Sullivan and Maillian spoke about ways their organizations are working to increase access to capital for minority-owned businesses and discussed initiatives created to empower Black and Latino founders, foster equitable entrepreneurship, and create the most diverse innovation ecosystem in the country.

“Reclaiming New Jersey’s position as the nation’s leader in innovation hinges on welcoming all entrepreneurs with original ideas to pursue their dreams,” Sullivan said. “Under Governor Murphy’s leadership, we’re working with our partners in the public and private sectors to close funding gaps that exist for far too many entrepreneurs of color and ensure that founders have the resources they need to succeed.”

Sullivan gave an overview of New Jersey’s proposed Black and Latino Seed Fund, which will focus on driving capital to Black- and Latino-owned enterprises. Governor Phil Murphy has proposed a $10 million Fiscal Year 2022 budget allocation to create the Fund. Crafted with input from Black and Latino founders, investors, and policy experts, this seed fund is an important step toward tearing down the institutional barriers that hold Black and Latino entrepreneurs back and replacing them with accessible resources that respond to these innovators’ unique needs.

The concept for the Fund resulted from a Request for Information (RFI) issued by the NJEDA last year to solicit input on ways to increase access to capital for Black- and Latino-led startups. The RFI sought input from a diverse range of stakeholders, including fund managers, angel investors, venture capitalists, small-business owners, researchers and practitioners involved in entrepreneurship work, industry and trade groups, and other states’ governments.

Sullivan also outlined a comprehensive suite of initiatives advanced by Governor Murphy to foster equitable entrepreneurship and create the most diverse innovation ecosystem in the country. This includes adding new bonuses to:

It also includes adding a diversity bonus to the NJEDA’s own venture investment plan, and an increased investment cap for investments in certified woman- or minority-owned businesses under the New Jersey Innovation Evergreen Fund, created under the Economic Recovery Act of 2020.  

During the Instagram Live chat, Maillian highlighted digitalundivided’s mission and resources it offers Black and Latina women entrepreneurs. digitalundivided is a non-profit, social startup that leverages data and advocacy to catalyze economic growth for Black and Latina entrepreneurs in innovation and technology. Maillian spoke about the groundbreaking programs they offer including START 2021,  a three-week virtual program for Black and Latina women founders at the idea stage of their entrepreneurial journey. She also talked about BIG Pre-Accelerator, a fast-paced pre-accelerator program for high-potential, pre-revenue Black and Latina women-led startups, as well as the Do You Fellowship, which positions high-potential, innovative Black & Latina founders for growth by providing them with funding, professional development, and access to exclusive mentorship and resources.

“Responsibility falls on all players in the innovation ecosystem to break down the barriers that far too often impede the path to success for entrepreneurs of color,” Maillian said. “It’s important to keep having conversations like we had last night and to continue connecting diverse entrepreneurs with critical resources like the programming spearheaded by NJEDA and digitalundivided. Working together, we will encourage innovation in NJ and have a lasting impact on the nation’s economy.”

A recording of the Instagram Live chat can be found at https://www.instagram.com/p/CNYd6tUobXu/.

About the New Jersey Economic Development Authority

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.


About digitalundivided

digitalundivided is a non-profit, social startup that leverages data and advocacy to catalyze economic growth for Black and Latinx women entrepreneurs in innovation and technology. Our goal is to create a world in which all women of color own their work. digitalundivided merges data and heart to change the trajectories of women’s lives. We are a connector and a catalyst, supporting Black and Latinx women entrepreneurs through best-in-class programming, mentorship, training, resources and investment. We offer unparalleled thought leadership in the space. And we bring together the shared experiences of our community to produce ground-breaking authoritative research on Black and Latinx women entrepreneurs. For more information, visit: www.digitalundivided.com and follow us on Twitter (@digundiv) and on Instagram and Facebook (@digitalundivided).

To learn more about NJEDA resources for businesses call NJEDA Customer Care at 609-858-6767 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, Instagram, and LinkedIn.

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