The NJII Venture Studio on the campus of NJIT is not the first Strategic Innovation Center in the state (it’s the 10th) or even in Newark (it’s the 2nd), but when you talk to NJII President Michael Johnson, this much is clear: It’s one of a kind.
“It’s different from anything we’ve ever done,” he said. “It’s not about investing in startups, it’s not about mentoring, it’s not about trying to help people in a garage — it’s about trying to build companies with corporate partners, where we’re de-risking the entire experience of a startup.”
Johnson was talking after a ribbon-cutting ceremony Tuesday in Newark that brought an all-star list of speakers, including Gov. Phil Murphy, Newark Mayor Ras Baraka, EDA CEO Tim Sullivan, NJIT Board Chair Robert Cohen — and a host of tech and corporate leaders from around the state.
Johnson said corporate involvement — from the beginning — is a differentiator and a difference-maker at the NJII Venture Studio.
“It’s intentionally different,” he said. “We’re not investing in founders, we’re building a company from scratch and we’re finding talent for it. We’re finding companies that have a distinct problem but are not well adapted to build the solution — so we build a company for them.”
That’s not entirely accurate.
While the goal is to build a company — using investment from the state and others — it’s not being built exclusively for the company that has the need. It can be used for its peers and competitors, anyone who has that distinct problem.
It also can be sold to anyone, bringing a return on investment.
“This will be a mechanism to solve problems, versus having a founder come off the street and us investing in a company that may solve a problem,” Johnson said.
Murphy clearly is sold on the idea. It’s a way to further his administration-long goal of building an innovative economy in the state. Baraka and Sullivan also were cheerleaders. But no one understands and appreciates the issue as well as Cohen. And for good reason.
In addition to be a triple-degree alum of NJIT, he is the president of digital, robotics and enabling technology at Stryker. He has seen first-hand how important it is for industry and higher ed to collaborate, which is why he made it a staple of the studio.
“We want a corporate partner involved at the earliest stage in every single company we build,” he told the audience.
Cohen said he hopes the financial investment from NJIT and the EDA will make companies take a closer look at the quality of the intellectual property coming out of NJIT. And, Cohen noted, the IP doesn’t have to come out of NJIT.
“If you’re like Stryker and you have an IP portfolio that is not part of your core business – and this IP can solve a problem, let’s think about how it can solve a problem for others,” he said. “Don’t hesitate to bring this IP and have a discussion with the NJII Venture Studio team. You can leverage the studio’s expertise and capital to spin out a startup from your own company.”
Cohen said having a corporate partner at the inception of each new company dramatically increases the chances of its success.
“Industry partners bring deep market knowledge, established sales channels and brand equity,” he said. “New Jersey has so many medium- and large-sized companies and so much expertise — it’s not a big ask to help others to start and grow new companies.”
Creating these small startup companies is great for the state and the regional economy, Cohen said.
“The design of the venture studio really is genius,” he said. “It’s truly a win-win-win for industry, academia and government partnering together. It’s all right here.”
Some might call it one of a kind.
