The N.J. Economic Development Authority and Rowan University will create the state’s 12th Strategic Innovation Center — a multi-location center in Camden and Mullica Hill that will support the research, development, and commercialization of novel medical technologies and devices.
The SIC, which will be operated by Plug and Play, a globally renowned venture capital firm based in Silicon Valley, will aim to serve as an accelerator for South Jersey’s burgeoning medtech ecosystem.
The SIC will be formally announced Monday afternoon.
The SIC will have locations in Camden and at Rowan University’s West Campus in Mullica Hill, serving as a world-class accelerator for early-stage companies and promoting overall scientific collaboration in the region.
Cooper University Health Care will serve as the anchor commercial affiliate and Garden State Venture Partners will invest in select participating accelerator companies.
The SIC will support early-stage ideas emerging from southern New Jersey labs and pull companies from across the region into the state, helping to provide specialized lab space to meet the needs of companies that might otherwise be forced to seek expansion outside New Jersey.
Gov. Phil Murphy, who sees Strategic Innovation Center’s as part of his economic legacy, obviously was thrilled by the announcement.
“Due to the ingenuity of its entrepreneurs and its breadth of state resources to promote startup growth, New Jersey has long been a hub for innovation in medical technology,” he said. “Through robust investment in our innovation economy and partnerships with storied medical and academic institutions, New Jersey is poised to maintain its leadership in the research and development of inventive health care technologies.”
The SIC will encompass 8,500 square feet of space within two locations in Camden: the Joint Health Sciences Center and the Cooper Medical School of Rowan University.
It will also have space on Rowan University’s West Campus in Mullica Hill, alongside the Shreiber School of Veterinary Medicine and Virtua Health College Research Center of Rowan University, when open. The SIC will include comprehensive laboratory, diagnostic, and testing spaces for research and development of new technologies in a collaborative environment.
Pending approval by its board, the EDA will invest $9.55 million into the SIC, including $5.5 million into a seed and early-stage fund for companies in the accelerator program and those that choose to locate and grow their operations in the State.
Twenty percent of participating companies must be from New Jersey, a nd the remaining participants will include companies from out of state that may relocate to New Jersey with support from programs that support early-stage startups, such as NJ Accelerate.
EDA CEO Tim Sullivan said the latest SIC will have great impact.
“Under Gov. Murphy’s leadership, New Jersey is leveraging partnerships with the private sector and academic institutions to bolster the state’s startup community, ensuring that entrepreneurs have access to capital and opportunities for meaningful collaboration with industry stakeholders,” he said. “Through the NJEDA’s Strategic Innovation Center initiative, the Garden State’s leadership in medtech and health care innovation will be strengthened, enhancing New Jersey’s economic competitiveness.”
EDA Deputy CEO Mary Maples agreed.
“Throughout his administration, Gov. Murphy has been committed to creating an environment where entrepreneurs can pursue innovative ideas with the capital and resources needed to succeed,” she said. “The EDA’s newest SIC in Camden and Mullica Hill will foster a culture of collaboration among South Jersey’s health care, academic, and technology sectors, ensuring that startup businesses in the medtech space have access to cutting-edge research and funding opportunities.”
How it will work
A look at how the state’s 12th Strategic Innovation Center will operate:
Plug N Play: It will serve as the operator at all locations, initially at Camden and Glassboro. This is similar to their role at NJ FAST. It will manage two cohorts per year to select companies, provide programming, access to investors, mentors and partners. Plug and Play may invest in graduates of the program.
Garden State Venture Partners: The New Jersey-based venture capital firm is committed to driving innovation and economic growth across the state. GSVP-managed funds will deploy up to $7 million in seed and later-stage investments into select companies participating in the SIC.
Rowan: It will provide strategic support, operator expense and space, similar to the EDA.
Cooper Health: As the anchor commercial affiliate, Cooper University Health Care will provide engagement and support to companies operating at the SIC.
Rowan University is among the nation’s top 100 research universities, the nation’s third fastest-growing public research institution, and one of two public universities nationwide with three medical schools. Along with the Cooper Medical School, the SIC will partner with the Shreiber School of Veterinary Medicine and the Virtua Health College of Medicine & Life Sciences, leveraging the university’s world-class facilities and faculty expertise to support startup creation.
Rowan President Ali Houshmand applauded the announcement.
“Nothing like the SIC exists to draw investments of this type to New Jersey,” he said. “Gov. Murphy’s vision helps health care innovators, entrepreneurs and investors take a giant leap forward in developing novel solutions. The SIC will add value to strong partnerships like those we have throughout the state with health care leaders as a result of our medical education and research excellence. We’re eager to see the SIC and GSVP attract startups that will thrive alongside Cooper, Rowan, and our other partners.”
Garden State Venture Partners (GSVP) is a venture capital firm committed to driving innovation and economic growth across the state. GSVP-managed funds will deploy up to $7 million in seed and later-stage investments into select companies participating in the initiative. As part of its investment strategy, GSVP seeks to accelerate the commercialization of breakthrough technologies emerging from Rowan University, other leading research institutions, universities, health care organizations, and innovation centers throughout New Jersey.
“Partnering with the NJEDA, Rowan University, Cooper University Health Care and Plug and Play to launch the State’s newest Strategic Innovation Center marks a pivotal milestone for Garden State Venture Partners and for New Jersey’s innovation economy,” GSVP Managing Partner Michael Connallon said.
“By aligning both early and later-stage capital with world-class academic research and the clinical expertise of leading health systems, we are building a powerful platform to accelerate breakthroughs in health care and medical technologies — sectors that are vital to both public health and long-term economic growth across the state.”
As its anchor commercial affiliate, Cooper University Health Care will provide engagement and support to companies operating at the SIC.
“Supporting innovations and business creation that work to improve lives is a major focus of the work of Cooper’s Innovation Center,” Co-CEO Dr. Anthony Mazzarelli said. “We are excited to play a supporting role in work that will generate jobs as well as technologies and devices to improve and save lives.”
Plug and Play, an innovation platform and startup accelerator, will be the SIC’s operator, overseeing two cohorts of at least 25 companies a year. The EDA previously partnered with Plug and Play on the Fintech Accelerator at Stevens Institute of Technology, a financial technology and insurance technology SIC better known as NJFAST.
“We’re proud to partner with NJEDA, Rowan University, and Cooper University Health Care to accelerate medtech innovation in South Jersey,” Plug and Play Chief Revenue Officer and Partner Michael Olmstead said. “This Strategic Innovation Center reflects our belief that meaningful progress happens when startups, healthcare leaders, academia, and the public sector come together with a shared mission. Our goal is to help the next generation of health care companies scale their impact faster — right here in New Jersey.”
EDA Chief Transformation Officer Kathleen Covielllo agreed.
“Through programs like the NJEDA’s Strategic Innovation Center initiative, New Jersey is continuing to invest in high-growth, strategic sectors that will define the economic future of the state,” she said. “Our newest SIC investment will leverage Rowan University’s academic prowess in medical technology to boost inventive startup companies and promote novel discoveries, furthering South Jersey’s standing as a regional leader in medtech innovation.”
