May 7, 2024

5 minute read

NJ FAST is the state’s fourth Strategic Innovation Center and will support research and development, innovation and entrepreneurship in the Fintech and Insuretech sectors

HOBOKEN, NJ (May 7, 2024) – Governor Phil Murphy announced today that the New Jersey Economic Development Authority (NJEDA) e Plug and play, a Silicon Valley-based innovation company and platform known for connecting startups, corporations, venture capital firms and government agencies, has launched an acceleration hub known as the Fintech Accelerator at the Stevens Institute of Technology (NJ FAST). NJ FAST is the first East Coast location for Plug and Play, which has partnerships around the world.

THE Strategic Innovation Center (SIC) will serve as a hub for financial technology (fintech) and insurance technology (insuretech) startups. Stevens Institute of Technology will serve as a founding academic partner and Prudential finance will serve as a founding corporate partner of NJ FAST.

“By serving as the fourth Strategic Innovation Center, NJ FAST positions New Jersey to remain at the forefront of innovation, research and development, particularly in the cutting-edge fintech and insurance sectors,” said Gov. Phil Murphy. “NJ FAST will enable new entrepreneurs to bring their world-class ideas to New Jersey, augmenting our state’s already impressive talent pool, all while capitalizing on the resources and expertise of our partners at Stevens Institute of Technology. This center sends a clear message: When it comes to technology and innovation, the Garden State is the place to be.”

NJEDA and Plug and Play have signed a non-binding letter of intent to form a limited partnership called NJ FAST. The two entities will oversee NJ FAST’s accelerator program with the opportunity to make equity investments in select participating companies. The program will host two groups per year, consisting of at least 10 companies per group. Companies will be recruited globally to participate in the program, but at least 20% of the group will be from New Jersey and there will be a strong focus on diversity, equity and inclusion. Equity investments of up to $1 million will be made in at least 15% of participating companies.

Pending approval from its board of directors, the NJEDA intends to invest up to $17.5 million in the fintech accelerator.

“Since taking office, Governor Murphy has prioritized growing New Jersey’s innovation economy by ensuring that companies of the future have access to world-class resources and support as entrepreneurs grow and scale their businesses ”, said Tim Sullivan, CEO of the NJEDA. “Fortified by NJEDA’s Strategic Innovation Center program, NJFAST aims to make New Jersey a national leader in fintech and insuretech by supporting innovation, which will help empower startups and drive the creation of new technologies that will in turn create jobs jobs and will support long-term, sustainable economic growth across the state.”

Plug and Play was founded in the 1990s and saw early success through investments in companies like PayPal and Dropbox. The company has a presence in more than 60 sites across five continents, and NJ FAST is the company’s first-ever partnership on the East Coast. Plug and Play’s network consists of 50,000 startups, more than 500 leading companies, and hundreds of venture capital firms, universities, and government agencies. From 2020 to 2022 Plug and Play was the most active startup accelerator in the world, according to CB Insights. Plug and Play invests in over 250 companies per year.

The company plans to commit at least 10% of the total capital commitment of up to $2.5 million in funding for the Innovation Center and will work to secure funding and industry support from various corporate entities.

“We couldn’t be more excited to land in New Jersey and work with NJEDA, Stevens Institute and Prudential to strengthen our presence on the East Coast and implement our open innovation approach in the financial services and insurance industry to identify and accelerate projects most promising startups in space”, said Michael Olmstead, Chief Revenue Officer at Plug and Play.

The Stevens Institute and Prudential will provide training and other educational, licensing, research opportunities for startups participating in NJ FAST and more. Stevens will also host events annually on its campus and provide a permanent team of student interns who will work to support participating companies.

The Stevens Institute already has a major presence in the fintech sector. Its fintech-focused research center, the Research Center towards Advancing Financial Technologies, collaborates with academic and industry partners on innovative solutions such as decentralized finance, AI-enabled finance, quantum finance and solutions for climate-related impacts on investments. The research center also works to protect financial data by creating and testing fairer trading platforms and supporting improved market simulation and stress testing tools.

“NJFAST is an excellent example of a public-private-higher education collaboration that has the potential to bring significant economic value to our state and to serve as a national and global leader,” said Stevens Institute of Technology President Nariman Farvardin. “Stevens is pleased to leverage his deep and significant experience in financial systems, technologies and entrepreneurship, as well as our knowledge of emerging fields such as artificial intelligence, machine learning and quantum computing, to the benefit of all partners and the State”.

“Prudential is excited to become a preferred partner of the NJ Fast accelerator. Our commitment to our home in New Jersey, and particularly to Newark, dates back nearly 150 years, so the opportunity to strengthen our connection to this community is truly rewarding,” said Stacey Goodman, Prudential’s chief information officer. “Prudential’s purpose is to improve lives by solving the financial challenges of our changing world, and we firmly believe this partnership will help us achieve our goal.”

With renowned financial institutions, such as Prudential, Barclay’s, Fiserv and JP Morgan, already present in New Jersey, NJ FAST will build on the state’s long history as a leader in the financial industry. By focusing on fintech, NJ FAST will support the growth of new types of companies and career opportunities, expanding New Jersey’s influence in the national financial and fintech sectors.

“NJ FAST represents the type and level of fintech investment we need to solidify New Jersey’s role as an innovator in the new global economy,” said Sen. Raj Mukherji, D-Hudson. “By directing support to businesses and entrepreneurs in the innovation economy, many of whom already call New Jersey home, the state, in partnership with the Stevens Institute, will exacerbate economic agglomeration up and down supply chains and will bring thousands of quality jobs to Hudson County and the state.”

“NJ FAST will create new and exciting business ventures for entrepreneurs in Hudson County, New Jersey and the region. Investments like this are critical to creating jobs and expanding New Jersey’s innovation economy,” said Kathleen Coviello, head of economic transformation at NJEDA. “NJ FAST will serve as a central hub for innovative fintech entrepreneurs, enabling new, cutting-edge developments to advance.”

JITs are facilities that support research and development, innovation and entrepreneurship through mentorship, networking opportunities, hands-on training, business support services and education opportunities. JITs can be accelerators, incubators or research centers. Having a physical location where entrepreneurs can collaborate will help support new and diverse innovators and promote long-term economic growth.

Last week, Governor Murphy attended the conference cutting of the ribbon at HAX’s US headquarters in Newark. HAX, also a JIT, will support 100 new companies over the next five years, generating at least 2,500 new jobs.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the lead state agency for promoting economic growth. NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong, vibrant communities, create good jobs for New Jersey residents, and provide pathways to a sustainable economy. stronger and fairer. Through partnerships with a broad range of stakeholders, NJEDA creates and implements initiatives to improve economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

For more information about NJEDA resources for businesses, call NJEDA Customer Service at 844-965-1125 or visit https://www.njeda.gov and follow @NewJerseyEDA on Facebook, Twitter, InstagramAND LinkedIn

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