Venture capital firm SOSV welcomed state and city officials in Newark recently to unveil the new 35,000-square-foot headquarters for HAX, a facility for developing technology startups across a host of industries. — Photo by Charles David/Courtesy: HAX
By Joshua Burd
A global venture capital firm has opened the doors to a new 35,000-square-foot facility in Newark that serves as a hub for developing tech startups across a host of industries.
Known as HAX, the accelerator at 707 Broad St. is already home to more than 30 companies from around the world and in fields such as climate, industrial automation and health care, according to a news release. That group is now poised to grow in the years ahead as SOSV, the venture capital firm, plans to invest $25 million in 100 companies by 2027.
Company executives welcomed Gov. Phil Murphy, Newark Mayor Ras Baraka and other officials last week to unveil the space and tout its potential ripple effects in the local market.
“Newark is the ideal headquarters location for us, given the city’s deep manufacturing and industrial heritage as well as its access to local talent, top universities and capital,” said Duncan Turner, SOSV general partner and HAX managing director. “We are incredibly excited to have a home in this supportive community and deeply appreciate the support of our partners across Newark and New Jersey.”
The self-described hard tech startup program announced last year that it would lease space at the historic downtown building, which the team of SHIFT Capital, the Hanini Group and CoInvestment Partners acquired in 2021 as part of a three-property portfolio in the city. In addition to funding and mentorship, HAX equips startups with cutting-edge facilities including chemical, mechanical and electrical engineering labs, 3D printing capabilities, manual metal fabrication, CNC machining and laser cutting.
How that impacts real estate elsewhere in the city remains to be seen, but Turner noted recently that the relative affordability of property in Newark was a key factor.
“You’ve got industrial heritage here, so a lot of the companies we’re investing in can find real estate which is relevant to them as they start to build out some of the technologies that they’re developing,” Turner said during the inaugural Newark Summit. “And you’ve got access to capital across the whole eastern corridor — New York up to Boston. So for us, this is a really good place for companies not just to initially accelerate their technology, but to go in partnership with the universities here … You’ve got all that talent in that area, you’ve got access to capital and you’ve got real estate, which can facilitate that growth.”
Rock Brook provided MEP and fire protection and IT, AV and security engineering design services for the facility, which consisted of 21,000 square feet of workplace and 9,000 square feet of laboratory-related spaces including rapid prototyping, electronics fabrication and testing, a wet lab, a metals shop, a woodshop and flex and assembly.
New Jersey was among several states across the East Coast and Midwest that was vying for HAX’s U.S. headquarters, according to Murphy’s office. Its decision to choose Newark gave way to a letter of intent in which the state’s Economic Development Authority and SOSV would invest $25 million to establish HAX LLC.
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, state officials said.
“Under Governor Murphy’s leadership, New Jersey has made significant investments in innovative technology startups, helping create jobs and strengthen our economy,” said Tim Sullivan, the EDA’s CEO. “Newark is an ideal location for entrepreneurs looking to collaborate, create, and hone their skills in the climate tech, industrial automation and health care fields. Powered by NJEDA-supported initiatives such as the Strategic Innovation Centers program, accelerators such as HAX are helping empower New Jersey startups and revolutionize the global marketplace, leading to diversity in the workplace and increased educational opportunities for the surrounding community. When we invest in New Jersey’s innovation economy, we invest in entire communities, small businesses, and cutting-edge technologies.”
HAX noted that there are several notable companies already in its program that are creating novel technologies. They include LightHearted, a cost-effective medical device that can diagnose heart disease, as well as Renovate Robotics, which manufactures and deploys autonomous robots that can install shingles on roofs, and PureLi, a spinoff from Princeton University’s WET Lab that is developing ways to extract lithium from brine.
“I’ve long disputed the idea that cities lack an appropriate workforce. What we lack is appropriate investment,” Baraka said. “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 Governor Murphy, our supportive legislators and the New Jersey Economic Development Authority.”
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