SOSV this morning announced is currently working on a $50 million HAX facility in Newark, New Jersey focused on growing industrial, healthcare and climate startups. The five-year development plan exploits $25 million from the New Jersey Economic Development Authority.
The facility is set to open in June of 2022, with an look on early-stage U.S. fellowships working toward their seed round. SOSV notes that, while HAX’s earliest focus was on wearables, in more recent years, the accelerator has largely shifted to industrial and healthcare, which currently comprise 70 – and 20% of its portfolio, respectively.
“Since 2015, HAX started investing in more industrial& health startups and today even off 90% of our new assets, ” HAX Partner Garrett Winther told TechCrunch. “These hard tech startups, at their earliest stages, tend to rely on more deep discipline R& D, high precision prototyping, and merely expect one to two of their first product before invoking fund. These corporations also take up a lot of space, readily crowding a apartment with their material and prototypes.”
Newark was chosen for multitude grounds, including proximity to New York City and universities like Princeton and Rutgers. It too, frankly, has more gap than, say, Manhattan- which is a clear necessity for industrial startups. That’s a big part of the reason fellowships like AeroFarms and Bowery have looked toward to the area to host their massive horizontal farming facilities.
The fact that the state was willing to put up around half the cost of the project likely didn’t hurt, either. New Jersey no doubt has a vested interest in welcoming hardware startups with open arms. It will be interesting to see what sort of incentives the local governments can offer to help keep them there to avoid the allure of nearby NYC.
“Growing New Jersey’s innovation economy both starts high-quality places today and engenders opportunities for exponential returns in the future, ” NJEDA CEO Tim Sullivan said in a liberate. “As startups become successful and scale-up in New Jersey, they build buildings, hire more hires, and become anchors for colourful local communities and small-business supply-chains.”
SOSV says the Newark location will effectively operate as a U.S. equivalent to its offices in Shenzhen, China, which open easy access to the world-wide equip chain. HAX likewise controls planets in San Francisco, Tokyo and New York.
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