NJ FAST fintech accelerator aims to aid innovation economy efforts

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In Hoboken Tuesday, officials and stakeholders announced the launch of NJ FAST – the New Jersey Fintech Accelerator at Stevens Institute of Technology.

The accelerator hub is a collaboration between the New Jersey Economic Development Authority (NJEDA) and Plug and Play. NJ FAST marks the first East Coast location for the iconic, Silicon Valley-based firm and innovation platform. The company connects startups with different entities. Stevens Institute, where the announcement was made, serves as founding academic partner. Meanwhile, Prudential Financial Inc. is founding corporate partner.

NJ FAST will host two cohorts a year. Each will consist of at least 10 companies with certain provisions around diversity, equity, inclusion. Additionally, equity investments of up to $1 million will be made in at least 15% of participating companies. The NJEDA intends to invest up to $17.5 million in the fintech accelerator, pending board approval.

Plug and Play was founded in the 1990s. It was an early investor in major companies such as PayPal, Dropbox and others. Plug and Play has partnerships around the globe. Its presence extends to more than 60 states across five continents. Its network is composed of some 50,000 startups; over 500 leading companies; and hundreds of venture capital firms, universities and government agencies.

Stevens Institute and Prudential will provide training and other educational, licensing, research opportunities and more for participating NJ FAST startups.

Stevens also plans to host on-campus events each year. The university will additionally provide a standing team of student interns who will work to support participating companies.

From mind to market

“Stevens is proud to play a key role in this initiative, which has the potential to transform New Jersey into the nation’s preeminent fintech capital,” said Stevens Institute President Nariman Farvardin. “Our world-class faculty; our talented students; our CRAFT (Center for Research Toward Advancing Financial Technologies) Center – the nation’s only NSF (National Science Foundation)-sponsored center dedicated to fintech; our education and research labs, including the cutting-edge Hanlon Financial Systems Laboratories; and our Hoboken location – will all contribute to the success of this important endeavor.”

Farvardin said that the synergies between the public and private sector as well as higher education partners – and others who will join – will propel innovative fintech ideas from mind to market.

“And they will do that at an electrifying pace,” he stressed.

Gov. Phil Murphy opened his remarks noting it is not every day that you get to see a team comprised of some of the most renowned names in academia, innovation and finance standing together.

“But today we do. We are here announcing a collaboration that will take New Jersey’s innovation leadership to the next level,” said Murphy. “We are launching the New Jersey Fintech Accelerator at the Stevens Institute of Technology – or simply to be named – NJ FAST.

“This new accelerator, which is being funded through the EDA’s Strategic Innovation Center initiative – will bring together the world’s top minds in finance and technology to pioneer game changing innovations in fintech,” Murphy continued. “And as New Jersey’s first accelerator that is explicitly focused on fintech, NJ FAST will nurture a new generation of companies as well as new generation of jobs right here in the Garden State.”

Seizing opportunity

Murphy said that there is no better home for this “revolutionary fintech accelerator” than Hoboken, on Stevens’ campus.

“Why you may ask. Well, for generations – New Jersey has been a trusted leader in the field of fintech and finance, more broadly,” Murphy explained. “We are home to some of the industry’s most influential names – either literally headquartered here, such as Prudential, or maybe their middle and back office, or maybe all of the above. Names like, again, Prudential, Barclays, ADP, JP Morgan, BNY Mellon, Fiserv, and many more. With NJ FAST, we are not only doubling down one of New Jersey’s bedrock industries – we are also seizing a once-in-a-generation opportunity to reimagine fintech.”

The governor stressed the importance of a partner like Plug and Play. The company has collaborated with hundreds of startups around the globe to incubate revolutionary technologies. The governor said he and his team visited the company during a recent trip to California.

Murphy noted that Plug and Play could have chosen anywhere to plant its flag for this first East Coast hub. But they chose New Jersey, which he thanked them for. After, he ticked off recent innovation economy successes, such as Newark’s HAX opening, the recent AI Summit and more. Murphy said Tuesday’s announcement builds on that trendline.

“With today’s announcement of NJ FAST, this much is clear: it’s going to be a huge May and a huge summer for New Jersey’s innovation economy,” said Murphy.

‘We think the sky’s the limit’

NJEDA Chief Executive Officer Tim Sullivan expanded on that thought as he spoke. Sullivan pointed to the focus on building “corridors of innovation,” and the capacity for that innovation, throughout the state.

“When you add a Plug and Play to our innovation ecosystem, we think the sky’s the limit,” Sullivan explained.

.@GovMurphy announced that the NJEDA and @PlugandPlayTC have launched the Fintech Accelerator at Stevens Institute of Technology (NJ FAST), serving as a hub for financial technology and insurance technology startups. Click here for more: https://t.co/ACV9DlrctJ pic.twitter.com/Qvxx59ceeU

— New Jersey EDA (@NewJerseyEDA) May 7, 2024

Sullivan reflected on the visit to the Plug and Play HQ. He said that everywhere you looked were iconic brands, founders and companies that Plug and Play helped germinate and seed.

“So, when we think about the next five, 10, 25 years of the New Jersey innovation trajectory – it’s going to be because of institutions like Stevens, like Prudential, and like Plug and Play that are really upping our game on the capacity for us to grow and germinate, and support new companies that grow in scale,” said Sullivan. “Because that’s how we get outsized job creation – and see creation of really good, family-sustaining jobs.”

Sullivan said that a marker of successful innovation ecosystems across the country is strong and intentional collaboration between higher education, big companies, venture capital and accelerators, and startups – topped off by some support and money from the government.

“And I can’t think of a more iconic roster of partners,” said Sullivan.

50 startups per year

Plug and Play Founder and CEO Saeed Amidi said he and his organization feel so welcome here in New Jersey. He added they look forward to building new relationships for impact, job creation and helping entrepreneurs realize their dreams.

“What we want to do with Hoboken and New Jersey is connect them to our 64 offices and 650 conglomerates that are partners of ours,” he explained. “I think it’s the best time in the world to be an entrepreneur. And we would love to – in the first phase here: do 50 startups per year – 25 per batch. And I am planning to invest in at least 10 of them from the Plug and Play fund. The best ones we are going to invest from the New Jersey Economic Development Fund.”

“We couldn’t be more thrilled to be landing here in New Jersey and working with NJEDA, Stevens Institute and Prudential to build out our East Coast presence and execute our open innovation approach across the financial services and insurance sector to identify and accelerate the most promising startups in the space,” said Plug and Play Chief Revenue Officer Michael Olmstead.

Creating a hub

“Prudential is thrilled to become an anchor partner on the NJ FAST accelerator,” said Stacey Goodman, chief information officer, Prudential. “Our commitment to our home base of New Jersey, and specifically Newark, goes back nearly 150 years – so an opportunity to further our connection to this community is so rewarding.”

Goodman stressed that Prudential’s purpose is to make lives better by solving the financial challenges of our changing world. “And we firmly believe that this partnership will help us achieve our goal,” she said.

NJEDA Chief Economic Transformation Officer Kathleen Coviello was a key stakeholder in bringing this program to fruition. She said NJ FAST will serve as a central hub for innovative fintech entrepreneurs. She added that will allow for new, cutting-edge developments to advance.

“NJ FAST will create new and exciting business ventures for entrepreneurs in Hudson County, New Jersey, and the region,” said Coviello. “Investments such as this are critical to creating jobs and expanding New Jersey’s innovation economy.”

“Serving as the fourth Strategic Innovation, NJ FAST positions New Jersey to remain at the forefront of innovation, research and development – specifically within the cutting-edge fintech and insuretech sectors,” said Murphy. “This center sends a clear message that when it comes to technology and innovation, the Garden State is the place to be.”