Tuesday, Governor Phil Murphy, Newark Mayor Ras Baraka, and the New Jersey Economic Development Authority (NJEDA) joined company leaders to cut the ribbon on HAX, LLC’s newly constructed United States flagship headquarters located at 707 Broad Street in Newark, New Jersey. HAX, a startup development program for pre-seed hard tech companies, with offices across the world, supports startups and entrepreneurs through investment capital, mentorship, and collaboration.
“One of the key priorities of my administration has been to expand our innovation economy by providing critical resources to entrepreneurs who want to bring their world-class ideas to New Jersey,” said Gov. Murphy. “HAX’s investment in Newark and New Jersey is a testament to the diverse talent pool the Garden State has to offer. From HAX to the Princeton AI Hub, to the Helix and Edge Works, New Jersey’s innovation story is evolving and our investment in the field will lead to long-term, sustainable economic growth.”
HAX, which is operated by Princeton, NJ-based venture capital firm SOSV, provides support for emerging companies, including a $250,000 initial investment in each participating company, 180 days of hands-on collaboration, and a global community for early-stage founders building hard tech startups. The 35,000-square-foot space boasts tools and workspaces such as chemical, mechanical, and electrical engineering labs, 3D printing, manual metal fabrication, Computer Numerical Control machining, and laser cutting. Since May 2022, 32 HAX-supported startups have been operating out of the company’s temporary space in Newark.
“I’ve long disputed the idea that cities lack an appropriate workforce. What we lack is appropriate investment,” said Newark Mayor Baraka. “HAX’s investment in Newark goes beyond being appropriate because it recognizes that innovation, creativity, collaboration and diligence are inscribed in our history and embedded in our DNA. With the opening of HAX, Newark accelerates its momentum as an emergent global hub for manufacturing and technological breakthroughs. I thank HAX and our advocates at Invest Newark and Newark Alliance for this critical partnership and extend my gratitude to Gov. Murphy, our supportive legislators and the New Jersey Economic Development Authority.”
In 2021, SOSV issued a Request for Proposal (RFP) regarding its intent to establish HAX’s U.S. headquarters. After submitting a response to the RFP and showing potential locations to SOSV leadership, the NJEDA was awarded the RFP. New Jersey was one of several states across the East Coast and midwest to submit a response. The two entities signed a Letter of Intent, with both the NJEDA and SOSV investing $25 million to establish HAX, LLC. As its contribution, SOSV committed to taking 100 companies through the HAX program over the next five years and investing $25 million in these startups. Companies participating in the HAX program are expected to generate at least 2,500 new, high-paying jobs in the area and attract millions in new capital.
HAX also furthers Gov. Murphy’s economic initiatives by serving as the flagship Strategic Innovation Center (SIC) in New Jersey. SICs are facilities that support research and development, innovation, and entrepreneurship through mentorship, networking opportunities, hands-on training, business support services, and education opportunities. SICs can be accelerators, like HAX, or incubators and research centers.
In late 2022, the NJEDA approved HAX for the NJ Accelerate program. Through NJ Accelerate, the NJEDA matches investments made by approved startup programs into startups that locate in New Jersey within six months after graduating from the participating accelerator program. The NJEDA’s match is in the form of a direct loan up to $250,000. HAX is one of five startup development programs currently approved to participate in NJ Accelerate.
SOSV has also committed to establishing relationships with universities such as the New Jersey Institute of Technology, Princeton University, Rutgers University, and Stevens Institute of Technology. SOSV has also become invested in the Newark community by hosting groups like the Newark Youth Career Pathways, participating in speaking engagements like The Newark Summit, and organizing events like its first HAX-A-THON during Newark Tech Week for local high school students.
“When we set out to find a new headquarters for HAX in the U.S., we were looking for an ecosystem that could be the birthplace of the re-industrialization of the U.S. We wanted world-class talent close to some of the largest industries in the world where we would have an industrial heritage and infrastructure ready to support our companies’ expansions,” said Duncan Turner, HAX Manager Director and SOSV General Partner. “Newark really has it all. NJ is committed to renewable power generation that will feed the grid for decades. We have some truly exceptional universities in the surrounding areas with academic departments that are developing IP and talent that will shape the world for generations to come. And we are a train ride away from two of the best sources of venture capital in the world. This really is a truly unique place.”
