HAX arrives in Newark; Can create 2,500 jobs, says Governor Murphy
NEWARK, NJ – A coveted HAX facility is coming to Newark, and up to 2,500 jobs could be created, officials say.
Governor Phil Murphy recently announced that theand Princeton-based venture capital firm the intention to bring a Essex County Tech Startup Development Program.
“The HAX office in Newark will be the flagship site for HAX in the United States and the operations center for a new network of programs across the country,” said Murphy’s office.
The HAX Seed Program helps entrepreneurs launch “hard tech start-ups” by providing assistance such as an initial investment of $ 250,000 in each selected company, technical support and 180 days of hands-on collaboration with experts. Of the industry.
HAX plans to lease up to 60,000 square feet of space in Newark, including space for 200 founders and employees, and manufacturing / prototyping workshops. It aims to welcome its first businesses to the Newark site in the spring of 2022, spokespersons said.
Newark was selected as the location for the new HAX program site and the US HAX headquarters through competitive research comparing locations across the country. NJEDA tentatively plans to invest $ 25 million in this effort.
According to Murphy’s office:
“Pending an approval decision from the NJEDA Board of Directors, the new SOSV / NJEDA entity will combine science and engineering to focus on industry-level innovation in the fields related to reindustrialization and decarbonization of the United States.Intent signed today, NJEDA’s board of directors will consider a $ 25 million investment in HAX LLC. As a contribution, SOSV intends to commit to have 100 companies participate in the HAX program over the next five years and invest $ 25 million in these startups. These companies can receive up to $ 50 million from SOSV as follow-up funding to support the companies as they grow. With this support, businesses participating in the HAX program are expected to create at least 2,500 new, well-paying jobs over the next decade as well as attract millions of new ones. capital calves. “
“One of my administration’s key strategies for building a stronger, fairer New Jersey is to develop the most diverse and inclusive innovation ecosystem in the country,” said Murphy. “Bringing HAX and the 2,500 jobs that go along with this effort to Newark will help us achieve this goal while ensuring that SOSV has access to the city’s extraordinary talent pool, 21st century infrastructure and network of institutions. world-class higher education. “
SOSV Founder and Managing Partner Sean O’Sullivan cited several factors that attracted SOSV to Newark, including the city’s proximity to major airports, public transportation, ports and highways, access to an “unprecedented talent pool fueled by world-class colleges and universities”. high-quality internet infrastructure, new innovation-focused programs in the state and “the tri-state region’s number two ranked global venture capital ecosystem.”
Newark Mayor Ras Baraka said he was excited about the arrival of the HAX hard technology startup program in the city.
“We look forward to working with HAX and the SOSV / NJEDA partnership to accelerate Newark’s growth as a technology hub,” said Baraka.
According to Murphy’s office:
“Establishing HAX’s headquarters in Newark brings the city the world’s first most active VC at Angel and Seed stages and the third most active VC in the world in the second quarter of 2021. To date, the HAX companies have collectively raised a total of $ 1.8 billion, of which $ 105 million was invested by SOSV. The current aggregate valuation of all HAX companies is $ 8 billion. The creation of the new HAX entity in Newark offers a unique startup development program focused on reindustrializing the US economy and renewing the US industrial base. SOSV has a proven track record of investing in over 100 manufacturing and industrial startups, including Formlabs, a 3D printing startup recently valued at over $ 2 billion, and Opentrons, the lab equipment startup operating in the city of New York Automated COVID-19 Testing… Along with the $ 25 million investment, SOSV intends to engage in college and university mentoring, local manufacturing sourcing, engagement in workforce development, nd create local advisory councils.
Garrett Winther, a HAX partner, wrote about the Newark facility – and what sealed the deal – in a blog post last week. He stated:
“HAX’s new presence in Newark will be a natural extension of HAX’s evolution. We started with consumer wearable devices ten years ago (and we still love them), but today 70% of our businesses are industrial disruptors and 25% are healthcare. the founders are just as likely to be scientists building proprietary technology as they are engineers integrating the technology. “
“Why Newark, New Jersey? SOSV has conducted a nationwide research and competition process. Midwestern sites have an industrial heritage; the south has a growing manufacturing base and the west coast is a leader in clean energy. Put simply, the city stands out because it provides an almost perfect location for start-ups to take their crucial first steps towards commercialization. Newark has a rich industrial and logistical heritage, including the largest port on the east coast. , and there is sufficient and affordable space and infrastructure available for large scale engineering projects. Many of the country’s top research universities and tech-focused companies are nearby, teeming with researchers and scientists who could one day be entrepreneurs. Downtown Newark is a cheerful and bustling neighborhood with plenty of affordable industrial space. At the same time, the city is only 10 minutes from one of the best-served airports in the country and 20 minutes by train from Manhattan, the center of the second largest venture capital ecosystem in the world. In the years to come, the founders of HAX in Newark will have no shortage of access to talent, capital, physical space or inspiration. “
“NJEDA was eager to bring HAX to the Garden State for all of these reasons, but they weren’t the only ones. New Jersey stood out because it was willing to commit $ 25 million to bolster the new presence of HAX in the state. For its part, SOSV has pledged to invest at least $ 25 million in 100 HAX startups over the next five years. New Jersey also has remarkable incentives for startups, such as investments. matching 1: 1, refundable tax credits for angel / seed investors and the NJ Innovation Evergreen Fund, which matches investments of up to $ 5 million in New Jersey-based companies. many of these policy innovations are the work of New Jersey Governor Phil Murphy, who is also an enthusiastic supporter of the HAX partnership.
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