SOSV Launches New HAX Facility in New Jersey for Startups

SOSV Announces $50 Million HAX Facility in Newark, New Jersey

SOSV revealed plans this morning for a $50 million HAX facility in Newark, New Jersey. This new center will be dedicated to the development of startups focused on industrial technologies, healthcare innovations, and climate solutions.

The project’s five-year development is supported by $25 million in funding from the New Jersey Economic Development Authority.

Facility Details and Focus

The facility is scheduled to launch in June 2022. It will primarily target early-stage U.S. companies that are preparing for their seed funding round.

HAX’s investment strategy has evolved over time. Initially concentrating on wearable technology, the accelerator now prioritizes industrial and healthcare startups.

Currently, these sectors represent 70% and 20% of HAX’s portfolio, respectively.

Shift Towards Hard Tech

“Since 2015, HAX has increasingly invested in industrial and health-focused startups, now accounting for 90% of our new investments,” explained HAX partner Garrett Winther to TechCrunch.

These “hard tech” startups often require substantial research and development, precise prototyping, and typically need only one or two product iterations before seeking funding.

Furthermore, these companies necessitate significant physical space to accommodate their equipment and prototypes.

Why Newark?

Newark was strategically selected for several key reasons. Its close proximity to New York City and prestigious universities like Princeton and Rutgers was a major factor.

The availability of ample space, a critical requirement for industrial startups, also played a significant role. Manhattan, for example, lacks the necessary room for such ventures.

This has already attracted companies like AeroFarms and Bowery to the area, who have established large-scale vertical farming facilities.

State Investment and Local Incentives

The New Jersey state government’s commitment to covering approximately half of the project’s cost was undoubtedly a contributing factor.

New Jersey is actively seeking to attract hardware startups and foster innovation within the state. It remains to be seen what additional incentives local governments will offer to retain these companies and counter the appeal of nearby New York City.

Economic Impact

“Expanding New Jersey’s innovation ecosystem will generate both high-quality employment opportunities and the potential for substantial long-term returns,” stated NJEDA CEO Tim Sullivan in an official release.

Successful startups that scale up in New Jersey will contribute to building infrastructure, creating jobs, and fostering vibrant communities and supporting local supply chains.

Global Supply Chain Access

SOSV intends for the Newark location to function as a U.S. counterpart to its existing facilities in Shenzhen, China. The Shenzhen location provides convenient access to the global supply chain.

HAX also maintains satellite offices in San Francisco, Tokyo, and New York.