HAX, a startup development program for pre-seed hard-tech companies based in Newark, is the fifth accelerator to be approved for support from NJ Accelerate, the New Jersey Economic Development Authority’s partner accelerator program.
That’s potentially good news for HAX, which is run by the Princeton-based venture capital firm SOSV, and the firms that HAX supports.
As a member of NJ Accelerate, firms that graduate from the HAX program are eligible to receive up to $250,000 in a 10-year, low-interest loan from the NJ Accelerate program. A 5% match bonus is available for companies that are certified as women- or minority-owned in New Jersey.
The dollar amount will match whatever HAX has invested into the startup, which otherwise would be unlikely to qualify for a loan from a bank.
In addition, these startups would be eligible for help on their rent from a different EDA program, NJ Unite, which potentially could pay half their rent for six months should they move into an approved coworking space.
This program is available to companies that may have started in other states.
These incentives are all efforts by the EDA to bring startup companies to New Jersey — and then keep them in-state when they are ready to grow.
EDA CEO Tim Sullivan said that, by supporting entities such as HAX, NJ Accelerate is impacting the ability of companies to establish roots and grow in New Jersey.
“The NJ Accelerate Program furthers Gov. (Phil) Murphy’s vision for New Jersey’s leadership in innovation by helping to advance the transformative ideas of New Jersey entrepreneurs,” he said.
“The NJEDA is committed to providing New Jersey innovators with the tools they need to take their concepts from drawings on a paper napkin to commercialization. NJ Accelerate is an essential element of our suite of resources that is empowering New Jersey startups to revolutionize the global marketplace.”
The program already is paying off for HAX.
The EDA Board already has approved a $150,000 loan to Renovate Robotics, a recent graduate of HAX. Renovate Robotics is a construction technology company working to automate the installation of shingles and solar panels on single-family residences.
Other accelerators that have been approved include: