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NJ ACCELERATE

The NJEDA is now accepting applications for this program. Please send an email to njaccelerate@njeda.gov to speak with an Innovation Officer.

NJ Accelerate encourages the participation of New Jersey Entrepreneurs in high-quality accelerator programs, which increase the growing young, innovative companies in the state.

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DOLLAR AMOUNT

Accelerators
1:1 matching sponsorship up to $2,000 per event capped at $20,000
………
Graduates
Up to $250,000 in the form of Convertible Notes with Warrants
NJEDA grant rent support up to 6 months

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IMPACT

Increase NJ deal flow for Approved Accelerators
………
Expand access to best-in-class accelerators for NJ businesses
………
Promote economic innovation.

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TARGET APPLICANTS

Open to best-in-class accelerators and Approved Accelerator graduate businesses.

PROGRAM GUIDE

INNOVATION OFFICE HOURS NOtice of funding availability Targeted Industries

QUESTIONS

If you have any questions please reach out to njaccelerate@njeda.gov

NJ Accelerate Approved Accelerators


NJ Accelerate Approved Companies

PROGRAM DETAILS

NJ Accelerate recognizes the strengths of accelerators in nurturing the next generation of entrepreneurs. Through NJ Accelerate, the NJEDA seeks to provide entrepreneurs access to best-in-class programs and return home with the tools and support to grow their businesses in the Garden State.
 
An accelerator is a fixed-term, cohort-based “boot camp” offering educational programs for start-up founders, exposing them to a wide variety of mentors, including former entrepreneurs, venture capitalists (VCs), angel investors, and corporate executives.

Through the NJ Accelerate Program, NJEDA will:

  • Promote Approved Accelerator program opportunities to the NJ innovation ecosystem.
  • Sponsorship grant funding support for Approved Accelerator programs and events held in NJ.
  • Provide direct loans and rent support to eligible Approved Accelerator graduates.
  • Support Governor Murphy’s goal of making NJ the most diverse innovation ecosystem in the country

NJ Accelerate is a two-step process to encourage the engagement of accelerator programs in New Jersey, while facilitating the participation of businesses in these accelerator programs:

1.  Accelerator operators apply to the NJEDA to be pre-qualified as an “Approved Accelerator”.
2.  Approved Accelerator graduates are eligible for financial assistance from the NJEDA in NJ.

As a benefit for Approved Accelerators participating in NJ Accelerate, the NJEDA will:

  • Disseminate information about and facilitate introductions for Approved Accelerator Programs.​
  • Offer sponsorship grants to each Approved Accelerator to host Programmatic Events in the State (e.g. Accelerator’s Demo Day; cohort road show; an in-person class, etc.) 


An Approved Accelerator Program is eligible to receive up to $2,000 in the form of a grant to host programmatic events in New Jersey. Each Approved Accelerator will be capped at $20,000 in total sponsorship during the pilot program. A bonus of additional 5% is available to Approved Accelerators that have a focus on DE&I as defined by the program.

The Investment Loan Benefit provides seed funding in the form of convertible notes, with a warrant on 50% of the principal amount, provided directly to the Approved Accelerator Graduate Companies, matching $1 to $1 the investment provided by the Approved Accelerator, capped at $250,000. A 5% bonus amount is available to Graduate Companies certified by the State of New Jersey as women or minority owned. Throughout the life of the note – which has a 10-year maturity – the Company is required to maintain its base of operations in New Jersey, anchoring it to the State innovation ecosystem.

Rent funding in the form of a grant to benefit qualifying Approved Accelerator Graduate Companies. The grant covers up to 6 months of rent not to exceed $25,000, matching the rent or membership fees $1 to $1 at NJ Accelerate approved locations. A bonus month amount is available to Graduate Companies certified by the State of New Jersey as women or minority owned.

NJ Accelerate is a two-step process to encourage the engagement of accelerator programs in New Jersey, while facilitating the participation of businesses in these accelerator programs.

Instructions for applying:

To be considered for participation in NJ Accelerate, an Accelerator Program must complete and sign the Accelerator Application Checklist and then submit with the following diligence materials to the NJEDA via email to NJAccelerate@njeda.gov.

If you are an Accelerator interested in joining the program, please reach out to NJAccelerate@njeda.gov

Due Diligence Items

  • NJEDA Legal Questionnaire
  • Certification of Non-involvement in Prohibited Activities in Russia or Belarus
  • Business Incorporation Certificate
  • Detailed Screening Process for Applicants
  • Structured Curriculum Overview
  • Written Testimonials/References
  • Mentor/Expert list with titles and bios
  • Examples of online networking/engagement platforms used by Accelerator
  • List of events produced/hosted by Accelerator over the past 12 months
  • Accelerator Investment Track Record
  • Accelerator Investment Funding details (amount, structure, etc.)
  • Accelerator Investment or sample financial document
  • Examples of graduate outcomes
  • List of prior NJ graduates
  • List of Current Cohort
  • List of corporate senior management participating (if applicable)
  • Diversity and Inclusion Bonus (if applicable)

Application

Click here to download the Application for an Accelerator

Approved Accelerator is subject to an annual audit

To apply to become an approved Collaborative Workspace, please submit the required documentation at njaccelerate@njeda.gov.

Before you start, use this checklist to see if you qualify as a collaborative workspace.

Collaborative Workspace Application – Required Documents:

Approved Collaborative Workspace are subject to an annual review. 

Approved Facilities marked with an asterisk (*) have multiple locations. One asterisk means one additional location

An Approved Accelerator Program is eligible to receive up to $2,000 in the form of a grant to host programmatic events in New Jersey. Each Approved Accelerator will be capped at $20,000 in total sponsorship during the pilot program. A bonus of additional 5% is available to Approved Accelerators that have a focus on DE&I as defined by the program.

Eligible Events:

– Have a minimum of 25 in person attendees

– Offer the opportunity for public presentation/comment by NJEDA staff, including but not limited to:

  • Speaking role
    • Keynote, welcome, panel participant
  • Inclusion in Marketing materials
    • Press releases
    • Program book
    • Social Media
    • Email blasts
    • Logo on all event materials
  • Website
    • Logo with link
  • Exhibit table (when applicable)
  • Complimentary Registrations for event
  • Post Event
    • Attendee list with contact information

Applications must include the following:

  • Event Agenda and Description, including number of expected attendees 
  • Budget of Expenses 
  • Confirmation that NJEDA will be provided the opportunity to participate in the event  
  • Current NJ Tax Clearance Certificate  

Approved Accelerators must be compliant with the NJ Accelerate Annual Audit.  

The Sponsorship Benefit application is submitted via email at the NJAccelerate@njeda.gov using form linked below.

Instructions for applying:

Please follow the steps below to submit an application for the sponsorship grant funding.

  1. Complete and sign the Event Sponsorship Request Form then submit with the required attachments to the NJEDA for approval review via email to NJAccelerate@njeda.gov.
  2. Once the Request Form has been reviewed and approved (Programmatic Event and associated costs), The NJEDA will enter into a grant agreement with the applicant detailing the awarded grant amount and other applicable terms.
  3. The NJEDA will review the request and disburse the event sponsorship funds to the accelerator via check/wire transfer if all requirements have been met.

Click here to download the fillable pdf of the NJ Accelerate Event Sponsorship Request Form

Rent funding in the form of a grant to benefit qualifying Approved Accelerator Graduate Companies. The grant covers up to 6 months of rent not to exceed $25,000, matching the rent or membership fees $1 to $1 at NJ Accelerate approved locations. A bonus month amount is available to Graduate Companies certified by the State of New Jersey as women or minority owned

Instructions for applying:

Please contact the Technology Innovation Products Team if you are interested in applying in the NJ Accelerate Rent Benefit, at njaccelerate@njeda.gov.

To be considered for the rent benefit, the online application must be submitted to the NJEDA within 6 months of graduation of an Approved Accelerator program or the latter date of departure out of the physical space offered by the Approved Accelerator program. The online application should be completed by the graduate company. Due diligence items are required to be uploaded in the application.

Rent grant application – NJ Graduate Company Required Due Diligence Attachments

Exhibit 1 – New Jersey Tax Clearance

  • Division of Taxation Tax Clearance Certificate required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.
  • Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
  • If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.

Exhibit 2 – Certificate of Completion from Approved Accelerator

Exhibit 3 – Current Employee List

Exhibit 4 – Current NJ WR30/ Registered PEO Letter/1099 form/ W2 form/ K1 form/ Job Descriptions/ Offer Letters/ Other Employment Documentation

Exhibit 5 – Current Executive Summary / Business Plan / Latest Investor Presentation

Exhibit 6 – M/WBE Certification (if applicable)
Early-stage businesses interested in becoming a certified M/WBE must complete an application with the New Jersey Department of the Treasury – Division of Revenue. M/WBE certifications are valid for 3 years.
For more information on M/WBE certification, please call the Division’s Business Registration and Certification Office at (609) 292-2146 or visit: https://www.njportal.com/DOR/SBERegistry/

Exhibit 7 – Certificate/Articles of Incorporation or similar company formation documentation

Exhibit 8 – Executed Lease/Membership Agreement

Exhibit 9- Right of Entry Form (Signed by graduate company and approved collaborative workspace)

Additional due diligence documentation may be requested.

Application:

Please contact the Technology Innovation Products Team to obtain the link to the online Application, at njaccelerate@njeda.gov

The Investment Loan Benefit provides seed funding in the form of convertible notes, with a warrant on 50% of the principal amount, provided directly to the Approved Accelerator Graduate Companies, matching $1 to $1 the investment provided by the Approved Accelerator, capped at $250,000. A 5% bonus amount is available to Graduate Companies certified by the State of New Jersey as women or minority owned. Throughout the life of the note – which has a 10-year maturity at a 3% interest rate – the Company is required to maintain its base of operations in New Jersey, anchoring it to the State innovation ecosystem.

Instructions for applying:

To be considered for the investment benefit, a graduate company must have received a qualified investment from the approved Accelerator Program. If the company has received an investment, an online application must be submitted to the NJEDA within 6 months of graduation of an approved Accelerator Program.  The online application should be completed by the graduate company. Due diligence items are required to be uploaded in the application.

Please contact the Technology Innovation Products Team if you are interested in applying in the NJ Accelerate Investment Loan Benefit at njaccelerate@njeda.gov

Investment Loan application – NJ Graduate Company Required Due Diligence Attachments

Exhibit 1 – NJ Tax Clearance Certificate
Please note: It is the applicant/client’s responsibility to maintain a current and clear tax clearance certificate. If a current and clear certificate is not evidenced to EDA at time of closing, EDA will not proceed with closing.
Instructions for obtaining this are below:

Division of Taxation Tax Clearance Certificate required. Certificates may be requested through the State of New Jersey’s Premier Business Services (PBS) portal online.

  • Under the Tax & Revenue Center, select Tax Services, then select Business Incentive Tax Clearance.
  • If the applicant’s account is in compliance with its tax obligations and no liabilities exist, the Business Incentive Tax Clearance can be printed directly through PBS.

Exhibit 2 – Certificate of Completion from Approved Accelerator

Exhibit 3 – Documentation / Agreement for Investment

Please provide all agreements pertaining the investment round/transaction the EDA will match through the NJ Accelerate program.
Examples include: stock purchase agreement, a simple agreement for future equity, a promissory note, and/or similar documents.

Exhibit 4 – Bank Statements confirming receipt of Investment to be matched

Exhibit 5 – Exhibit 5- Fully Diluted Current Capitalization Table

Exhibit 6 – Current Employee List

Exhibit 7 – Current NJ WR30/ Registered PEO Letter/ 1099 form/ W2 Form/ K1 Form/ Job Descriptions/ Offer Letters/ Other Employment Documentation

Exhibit 8 – Current Executive Summary / Business Plan / Latest Investor Presentation

Exhibit 9 – M/WBE Certification (if applicable)
Early-stage businesses interested in becoming a certified M/WBE must complete an application with the New Jersey Department of the Treasury – Division of Revenue. M/WBE certifications are valid for 3 years.For more information on M/WBE certification, please call the Division’s Business Registration and Certification Office at (609) 292-2146 or visit: https://www.njportal.com/DOR/SBERegistry/

Exhibit 10 – Management prepared financial statements (Income Statement, Balance Sheet and Cash Flow Statement, quarterly basis, prior 2 year actual, next 3 years projected)

Exhibit 11 – Certificate/Articles of Incorporation or similar company formation documentation

Additional due diligence documentation may be requested.

Application:

There is a $500 fee to submit this application

Please contact the Technology Innovation Products Team to obtain the link and password to the online Application, at njaccelerate@njeda.gov

Eligibility for Accelerators

The NJEDA will welcome all accelerators that meet the program criteria and evaluate them during the pilot on a first-come, first-served basis. The accelerator entity must meet the minimum following criteria:

  • Accelerators must have graduated a minimum of two cohorts prior to application.
  • A well-codified thorough and rigorous screening process for all applicants.
  • A structured curriculum that is focused on supporting the growth of startups and at a minimum includes business strategy around product sales & marketing.
  • High prior participant satisfaction, as verifiable through reference calls and testimonials.
  • Access to at least 50 actively engaged subject matter experts/mentors across industries or functional capabilities to provide specific programmatic training for each company (e.g., Technology, Sales,Strategy, Financing, Accounting, Marketing, Fundraising, etc.)
  • Program engagement of the broader startup Ecosystem of mentors, advisors or investors from outside the Accelerator and hosting a demo day viewable to outside participants.
  • A minimum of 20 mentoring hours to the selected participants.
  • A proven and documented or certified track record of success in prior graduates, demonstrated by at least 35% (to be reviewed and adjusted annually by NJEDA staff according to the prevailing market median data available) of graduates to receive follow-on funding from non-related parties (non-related defined as anyone not in participating
    company managements), seeing strategic acquisition, significant (50%+) revenue growth in the last year or achieve an exit.
  • The existence of a platform to facilitate community engagement and networking for current and past program participants (i.e., an active alumni network)
  • If a corporate accelerator, the active participation of staff at all levels of the organization, including Senior management and at the Corporation.
  • The accelerator must include an in-person aspect and not be entirely virtual, which allows for engagement and personal mentoring of the selected companies; the physical space must be equipped to host events.
  • The accelerator will provide financial investment in some form to at least one participant company per program, including direct investment or customer sales relationship (in-kind arrangements are insufficient)
  • The Accelerator Program is open to applicants from NJ.
  • The Accelerator Program supports innovation and has a consideration for, or focus on, at least one of the “Targeted Industries”.
  • A preference and bonus will be granted for all accelerator programs that have a focus on supporting underserved groups including: female entrepreneurs and founders of color.
    • This preference translates into a monetary sponsorship bonus for Approved Accelerators with a diversity focus and their NJ-graduate companies that are certified by the state of NJ as a women or minority-owned business.

The Accelerator Program supports innovation and has a consideration for, or focus on, at least one of the “Targeted Industries” as identified by the NJEDA which currently includes:

  • Advanced Transportation and Logistics
  • Advanced Manufacturing
  • Aviation
  • Autonomous Vehicles and Zero-emissions
  • Clean Energy
  • Clean Technology
  • Life Sciences
  • Hemp Processiong
  • Information and High Technology
  • Finances and Insurance

Full list is linked here

Eligibility Requirements for Businesses Participating in Approved Accelerators:

Companies must meet the following criteria within six months of graduation (or the latter date of departure out of the physical space offered, with respect only to the rent award of NJ Accelerate) from the Approved Accelerator to qualify for support.

  • New Jersey Tax Clearance Certificate
  • At least 50% of the company workforce works or pay taxes in NJ
  • A minimum of 2 founders devoting 100% of their professional time to the Company in NJ and 80% of their time in New Jersey
  • The Company is in one of the “Targeted Industries” as identified by the NJEDA
  • For the Investment Loan Benefit only, the Company must have received an investment from the Approved Accelerator

Targeted industries are any industry identified from time to time by the NJEDA that shall initially include:

– Advanced Transportation and Logistics
– Advanced Manufacturing
– Aviation
– Autonomous Vehicle and Zero-emissions
– Clean Energy
– Clean Technology
– Life Sciences
– Hemp Processing
– Information and High Technology
– Finance and Insurance

If you’d like to review the definitions of each targeted industry further, please see the “Targeted Industry Definitions” document available for download on the right-hand side of this page.

  • Investment Loan Benefit
    • Application fee: $500
    • Modification fee: $250 minor/ $1000 major
    • Extension Fee: $750
  • Graduate Rent benefit
    • No fees
  • Event Sponsorship Benefit
    • No fees

Please note, all fees associated with this application are non-refundable.