Upcoming Webinars to Educate Technology and Life Sciences Startups About New Rent Support Program
TRENTON, N.J. (September 14, 2018) – The New Jersey Economic Development Authority (EDA) today announced it will be hosting a series of informational webinars for entrepreneurs to learn about NJ Ignite, a new program that provides rent support for technology and life sciences companies moving to incubators, accelerators, or other collaborative workspaces in New Jersey.
In support of Governor Phil Murphy’s strategy to create a thriving innovation ecosystem, NJ Ignite will provide up to 50 percent off rent for up to nine months for early-stage technology and life sciences businesses moving to a new collaborative workspace. Thirty-three percent of the funding will come from the EDA and the other 17 percent will come from the participating workspace.
EDA Chief Executive Officer Tim Sullivan noted that, with dozens of sites potentially eligible throughout the state, NJ Ignite will offer significant advantages for both startup companies and collaborative workspaces.
“NJ Ignite will help entrepreneurs access the benefits of participating in these workspaces, including increased productivity and motivation, easier access to information, faster setup timelines, and increased brand exposure,” Sullivan said. “At the same time, NJ Ignite is a tool that owners of collaborative workspaces can use to attract new tenants to their facilities. We encourage anyone thinking about participating in the program to sign up for a webinar to learn more.”
The webinars will be held on September 24 at 10:00 a.m. and October 3 at 2:00 p.m. Anyone interested in attending one of the webinars is asked to register online at https://www.njeda.gov/njignite.
Following a survey conducted by the EDA that enlisted the creativity of the State’s technology, life sciences and greater business community, “NJ Ignite” was announced at yesterday’s EDA Board meeting as the official name of the program originally announced in July as the “Incubator and Collaborative Workspace Rent Initiative.”
Governor Murphy announced in July that the EDA will make an initial investment of $500,000 in NJ Ignite to provide grants for two, four, or six months of rent payments, with the workspace committing to subsidize half that amount. For a startup, there is a maximum benefit of up to $15,000.
A tenant company must commit to continuing to work from the collaborative workspace (paying rent) for a period no less than EDA and the collaborative workspace’s combined months of support.
The EDA will also provide an additional month of support if the workspace is located in an Opportunity Zone, affiliated with a hospital system or New Jersey university, or is recently established. These months can be added together for a total of three additional months. These months do not count toward the workspace match requirement or the tenant commitment requirement.
Governor Murphy noted that, according to research by the National Business Incubation Association, companies nurtured in a business incubator have a survival rate of 87 percent, compared with 44 percent for unassisted enterprises. He also said that the presence of an accelerator has been associated with a 104 percent annual increase in a region’s seed and early stage venture capital deals.
The EDA expects to begin accepting NJ Ignite applications in the coming weeks. The application, when available, and details on program requirements can be found at https://www.njeda.gov/NJIgnite.