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Start-up News | iBREAKFAST NEW JERSEY

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iBREAKFAST NEW JERSEY
An iBreakfast Event hosted by Steven Greene and Karen Sperling

Start- up News

True innovation needed to create new jobs in area
Written byAlan Brody  Apr 18, 2011|   County Executive Rob Astorino did a great outreach to the voters of Westchester with his recent phone conference “town hall” meeting, yet he stumbled when he took questions about developing new business in Westchester. The best he could say was: “We need Pepsi . . . and 900 jobs.” He is not alone. As the head of a national start- up forum called the iBreakfast, which has helped thousands of start- ups meet investors, I can say with some authority that most politicians — in fact, most corporate executives — have no idea how to create new businesses. Corporations may know how to grow the businesses they already have; they certainly know how to negotiate better tax deals for locating their headquarters. But when it comes to creating new business, they usually buy someone else’s start- up. Yet start- ups are where the new jobs really come from. At the New Jersey Institute of T echnology, which has more than 90 startups, each one generates an average of seven full- time jobs and four student jobs

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Start-up News | iBREAKFAST NEW JERSEY

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according to the director, Jerry Creighton. In this new economy, where factories tend   to be in China, logistics are king and everyone is online, we have to think way beyond fostering the growth of sweetenedliquid companies. The question is how? What we need is a new business ecosystem — the kind that made Dobbs Ferry’s Mark Zuckerberg take Facebook to Silicon Valley: it had the talent, the venture money and the ability to build buzz among influential people who could help him market his site. In my view, White Plains could be the next San Jose and Valhalla the next Cupertino, but it takes some advanced thinking.   Business incubators   Astorino did mention an incubator for new business. Many cities are developing them and they are a great start. However, to really succeed they need to be a lot more than some low- cost real estate for entrepreneurs. Today’s start- ups are often so virtual that all they need is a Starbucks or Panera. Saturday, April 16, 2011
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Venture Capital Funding Drops in NJ From Same Quarter Last Year
BY ALEXANDER MACINNES The Record    Venture capital investment in New Jersey companies during the last quarter dropped

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Start-up News | iBREAKFAST NEW JERSEY

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by 28.9 percent compared with the same quarter a year earlier. However, when investors saw opportunity, they invested in the state’s life- science companies, according to a report.The MoneyTree Report from PricewaterhouseCoopers and the National Venture Capital Association, based on data provided by Thomson Reuters, shows venture capitalists invested $155.6 million in 13 deals last quarter. Of that, $128.8 million, or more than 82 percent, went to biotechnical, pharmaceutical and medicaldevice businesses, which are in the lifescience category.Nationally, venture capital investments rose 13 percent to $5.87 billion, but the number of deals slid 6 percent compared with the   first quarter of 2010. The software and energy industries were the biggest winners, garnering $2.1 billion, or 35.8 percent, combined.Despite the drop in funding for New Jersey companies compared with the same quarter last year, investors did boost their spending 75 percent over the fourth quarter in 2010, when venture capitalists invested $88.8 million in New Jersey companies.Three local companies received funding during the first quarter: MDX Medical Inc., a Lyndhurst company that provides online doctor evaluations, received the third- largest amount of any start- up in the state with $16.3 million. Eagle Pharmaceutical Inc. of Woodcliff Lake and online marketer Howmark Mobile LLC of Upper Saddle River took in $11.6 million and $1 million, respectively.Statewide, the largest share of funds received went to early- stage companies with more than $118 million, about 76 percent of the total. That ran counter to the national trend   http:/ / www.northjersey.com/ news/ business/ 119965129_1st- quarter_venture_capital_dips.html

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