Read the summary and watch or listen to the interview here: https://www.crowleylawllc.com/podcasts/driving-economic-growth-in-new-jersey-with-kathleen-coviello/
Introduction to the Podcast
Philip Crowley: Welcome to the from lab to patient garage to market podcast with your host, Phil Crowley. In each episode, we will discuss professionals serving the tech startup market and the various issues of importance to those companies. You can find this show on all the major platforms, including YouTube, LinkedIn, Facebook, Apple podcasts.
Spotify and on our website, Crowleylawllc. com. Now here’s the host of From Lab to Patient, Garage to Market, Phil Crowley.
Welcome and thanks for tuning into our podcast. You know, we seek to bring you individuals with practical experience in the innovation space. Peoples whose experience can help you on your journey of entrepreneurship. What we try to do is to find people who can identify the resources that can help you along the way, [00:01:00] as well as identify those roadblocks and mistakes to avoid that can derail Your or delay your journey to innovation.
And, uh, that’s what we focus on.
Meet Kathleen Coviello
Philip Crowley: Uh, today I’m happy to have with us, um, uh, Kathleen Coviello, who is the chief economic transformation officer of the New Jersey economic development authority, Kathleen has a wonderful and varied career. In the innovation space, and I think that the title that she has speaks volumes about the kind of work that she does to stimulate economic growth, particularly in the technology sectors in New Jersey.
Kathleen, welcome.
Kathleen Coviello: Great to be here. Thanks, Phil.
Philip Crowley: Kathleen, could you tell our audience a bit about your role and the role of the Economic Development Authority?
Kathleen Coviello: Sure, happy [00:02:00] to. So, um, as you mentioned, my title is Chief Economic Transformation Officer, which is a mouthful. Um, but it really, uh, speaks to, uh, the division that I lead for the organization that focuses on industries that are going to transform our economy.
So high growth, innovative industries that includes clean energy. It includes technology. It includes life sciences. Manufacturing, believe it or not, there’s a new renaissance in the state of manufacturing and, um, our newest edition, which is Film and digital media. Um, so those are all the industries under, uh, the umbrella.
And my role at the Economic Development Authority is to bring a varied. portfolio of tools and resources to grow those parts of our economy.
Philip Crowley: Well, that’s an exciting job to have in New Jersey. New Jersey must have some of the highest density of people with PhDs in various areas of technology in the life [00:03:00] sciences of any of the states.
So it seems like you have a very rich portfolio of people to draw on.
Kathleen’s Journey into Innovation
Philip Crowley: But how did you get involved in the innovation space to begin with?
Kathleen Coviello: Well, I’ll go back to early in my career. Um, I, uh, when I graduated from college, I went into the banking industry. And, um, I had a startup come to the bank I then worked at and wanted funding and I was the, the low man on the totem pole and no one wanted to talk to this company.
So the company got bounced around and in my lap and they said, would you talk to them? Like, yeah, I’ll talk to them. Um, and, and lo and behold, the company was Not only a startup, but they were an apparel manufacturer. And, uh, my colleague said, and just remember we don’t do startups and we don’t do anything in apparel.
Right. Um, so it was an interesting conversation, but it was three entrepreneurs that had left, um, very successful careers in the apparel industry, [00:04:00] had sold their. BMWs and Mercedes. Um, and we’re driving clunkers, uh, and emptied out their 401ks and put all of their resources into this business. And it was really their passion and vision, um, that I bought into.
And, uh, lo and behold, we, we, we wound up financing the company. We created this really unique structure. that mitigated the risk for the bank and allowed the company to get the resources they need to grow. Um, and it was really the passion, um, of working with people with such great dreams and being able to, you know, support those dreams, um, that, you know, had my buy in.
And, uh, the company, uh, you may have heard of them today. Uh, they’re known as Lilly Pulitzer. So it’s the first startup that I financed, um, a well known apparel brand for high end women’s clothing now. Um, and, and there was no going back then. I wasn’t going to finance kind of, you [00:05:00] know, your mom and pop business after working with some really exciting, passionate entrepreneurs and watching the growth trajectory of those things.
at that company. Well,
Supporting Entrepreneurs in New Jersey
Philip Crowley: you certainly describe the typical entrepreneur in terms of having them go all in for their innovation, you know, selling the cars, emptying out their 401ks because they believed in something with great passion. And, uh, is that one of the indicia that you look for when you, uh, when you look to invest in companies or support companies?
Kathleen Coviello: You know, for certain, right? If you as an entrepreneur are hedging your bets and you don’t believe in the success or the opportunity, um, you’re not going to get anyone else to believe in that opportunity. And so, um, you know, I’ve, I’ve heard some really great investors say, you know, bet, bet on the jockey.
Um, and that is part of it, right? You have to have someone that believes in this. whatever the business value proposition is, and it’s going to [00:06:00] drive to success. So for certain,
Philip Crowley: what about your focus on not just a jockey, but a group of jockeys and a team with multiple talents and that sort of thing? Is that something that innovators should be thinking of putting together to make themselves more attractive?
Kathleen Coviello: You know, um, no one can do it all alone, right? And anybody who thinks they can is fooling themselves. So, you know, realizing kind of where your strengths are and supplementing, um, where your weaknesses are with other members of the team, I think is critical to success. And the EDA, um, has a program called Innovation Fellows.
Um, it was passed through legislature and signed into law by the governor. That we actually support first time entrepreneurs. We give them, um, income replacement dollars. And, um, you know, many entrepreneurs don’t have that 401k to empty out or the Mercedes to sell, right? [00:07:00] Right. Um, or, or trust fund or whatever have you, that’s gonna help fund this business.
And so this initiative came around to make sure that everyone gets a chance at. Being an entrepreneur and and, you know, driving to their dreams. And one of the requirements under this program is that you have to have a team of three. And the reason you have to have a team of three is you need a tiebreaker, right?
If you have to, it’s not a good thing. Um, and interestingly enough, that first company I mentioned, they started with a team of three and one of the team members actually dropped out of the business. Um, but, but they still made it, but, you know, we looked carefully at kind of scoping this program. And one of the things is to that point, we wanted to make sure that folks had well rounded resources, um, to support their business.
EDA’s Focus Areas and Programs
Philip Crowley: Well, it seems to be one of the indicators of potential success, but you mentioned a number of areas in which the Economic Development Authority is [00:08:00] interested. How are those areas chosen? Was that something that came down from the administration or was it developed internally at EDA?
Kathleen Coviello: So Phil, you know, I’ve, I’ve been at the EDAA long time, over 19 years, and, and with each administration, each governor, uh, comes a little bit of a different focus, right?
I always say, you know, my, my goal is to execute on, on the vision of the person under the Gold Dome. Um, who, who the, who, the state. You know, constituents put into office. Um, and each governor goes about it in a very different style. This is my fourth governor that I’ve worked under. Um, and so Governor Murphy for the 1st time in a long time, at least during my tenure, put put together an economic development plan when he came into office, and he clearly spelled out that he wanted New Jersey to be a state of innovation and to focus on small, innovative companies, small And to make sure that we’re the most diverse innovation economy.
Um, [00:09:00] so things like that innovation fellows and giving, you know, folks that aren’t necessarily from an Ivy League school with a lot of money, um, an opportunity to enter into this innovation space was, was germane to, uh, Governor Murphy’s platform. Things like place based economic development. The governor has spent a lot of time and vision around this.
Um, and you know, I think the, the, uh, First example of that is the Helix in New Brunswick. Um, you know, the governor clearly saw that, you know, we were, we were sandwiched between two great metropolitan areas in New York and Philadelphia and losing a little bit of our identity that way. And by putting a physical space on the map in, in the Helix building in New Brunswick, where we bring together academia, corporate partners, and business partners.
space. It’s, it’s not only an identity for us and a focus on what we want to excel at, but it’s a place for folks in the state to go that are interested in [00:10:00] advancing whatever each of these centers has. And we have a number of them now with the Helix being a life science center and one of the first ones.
Last week, two weeks ago, we were up in, um, Hoboken launching NJ fast, which is a fintech accelerator and a partnership with Stevens University and Plug and Play. Um, you know, and again, playing to the strengths we already have in New Jersey. We have a big backbone for the financial services industry. And how do we anchor entrepreneurs here, have this identity and bring everyone together?
Philip Crowley: Well, I was particularly pleased with the government, the governor’s selection of my alma mater, Stevens Institute of Technology in Hoboken to be one of the lead parties in that Stevens has a great deal of information and dedication to financial technology. And in a future. podcast. I hope to get someone from the Stevens faculty [00:11:00] and that group to speak with us about that.
Outreach and Engagement with EDA
Philip Crowley: How do people generally get in touch with the EDA? How do they present themselves? And what sorts of programs do you have to outreach?
Kathleen Coviello: Yeah, that’s a great question. And, you know, quite honestly, it’s one of the biggest challenges we have, right? We have over 80 initiatives and programs from small businesses to support mom and pop shops, to support venture capital firms, to support innovation.
And, um, it’s, it’s a, it’s a lot for individuals to kind of get through. And, you know, we, we happily engage in things like this where we can get our messaging out. But I think one of the most effective tools that we have, at least on the innovation side is we hold monthly office hours. And, um, we generally, we, we actually rotate them between in person and virtual.
So you can pick your PO and which you prefer. Um, and [00:12:00] uh, we just held one last week in Newark. Great attendance. We do a bit of a presentation on. Broadly, what is our portfolio? And then we drill down on, um, one particular program. We often have partners come in, whether it be the New Jersey business action center, the small business development corps around the state.
And then we kind of break off 1 on 1 that we can talk to folks and say, okay, let’s. You heard about the big picture. Let’s see how it applies to you. And one of, you know, I think the most important things we have to do is have continuity because when you’re an entrepreneur and your head’s down, you only think about, you know, what you need at that moment.
And you may have forgotten about, you know, the 70 other programs that the EDA has. Right? And so for us to continually get out, our message is really important. We also send out monthly newsletters by industry. And if if your listeners don’t [00:13:00] follow us on social media, they certainly should. You know, we’re.
We’re, we’re constantly putting out on social media what our new initiatives are when we’re opening up new opportunities. Uh, our board just approved last month, um, our manufacturing voucher program, which is a grand of up to 250, 000. Up to 50 percent of equipment costs to help entrepreneurs who maybe were on the fence about buying equipment, you know, make that purchasing decision, retool and and re, um, advance their manufacturing initiatives.
Um, you know, we’ll do a webinar for folks to learn about that program when it opens up in the new year. So, you know, between print. And I think if you, if you follow any of the, um, periodicals in the state of New Jersey, they’re often covering all the work that we’re up to. So we try and, you know, consistently get our message out.
Um, and you know, we ask folks, just have your ears open, tune into one of our [00:14:00] office hours. You can do it virtually from your laptop. You can show up in person and meet folks from our team, um, and follow us on social media.
Philip Crowley: If people wanted to see a list of. programs that you have or, or learn more about NJEDA.
Where can they go on the web to get that information, Kathleen?
Kathleen Coviello: Pretty simple. NJEDA. gov.
Philip Crowley: Well, that does make it very, very simple.
Green Energy Initiatives
Philip Crowley: I’ve seen in the news that the governor has made a big push for green energy. Can you tell us about the programs in place to help make our energy sector more eco-friendly?
Kathleen Coviello: Certainly. New Jersey is a dense state, and two of the biggest contributors to carbon emissions here are buildings and automobiles. We focused on these areas first in our plan to tackle clean energy. New Jersey E.D.A. runs a program called NJ ZIP, which provides vouchers to businesses to help them electrify their vehicles. This makes it easier for small businesses to transition to electric vehicles by reducing the cost of EVs to the level of traditional gas or diesel vehicles. We’re launching the third round of NJ ZIP soon, and many small businesses have already taken advantage of it for cargo vans and delivery vehicles.
Philip Crowley: That sounds like a great program.
Introduction to Crowley Law
Philip Crowley: I’d like to take a moment to talk about Crowley Law. We’re a boutique law firm focused on helping life sciences and technology entrepreneurs take their innovations from the lab to the market. I’m a former research physicist, so I understand how difficult it is to generate new knowledge, and as a lawyer, I know the challenges of turning great ideas into products that improve lives. We provide resources like ebooks, blogs, and FAQs on our website to help innovators reduce the risks they can control on their journey to the marketplace.
Now, back to your work in green energy. I know New Jersey has been active in this area, and the E.D.A. has played a central role.
Kathleen Coviello: Yes, absolutely.
Decarbonizing New Jersey’s Buildings: NJ Cool Program
Kathleen Coviello: One other initiative I’d like to share is NJ Cool, which focuses on decarbonizing buildings. We’re targeting underserved communities in cities like Atlantic City, Edison, and Newark, where clean energy challenges are most pronounced. The program helps small businesses upgrade their HVAC systems to improve efficiency. We offer financing options that make these large capital expenditures more manageable, allowing businesses to be more energy-efficient without sacrificing other investments. We also offer loans with long, flexible terms to help bring down the cost of going green, a barrier we hear about frequently.
Supporting Innovators: NJ FAST and FinTech Initiatives
Philip Crowley: What about programs for innovators in the tech sector? You mentioned NJ FAST—how is the state supporting fintech and other tech businesses?
Kathleen Coviello: We’re partnering with accelerators to help businesses grow, and NJ FAST is one example. It’s one of our strategic innovation centers, alongside others like the Helix. We brought in Plug and Play from the West Coast to run NJ FAST, which recently had its first demo day. The accelerator’s model is to help businesses build with the aim of selling to customers, not just developing great technology. Prudential, based in Newark, is a key corporate partner, and they’ll help these companies solve problems from an InsurTech and FinTech perspective. This collaboration between academia, corporate partners, and accelerators is a real success factor.
Philip Crowley: It’s a great way for innovators to understand the long-term impact of their decisions and the importance of partnerships. It must be helpful for young entrepreneurs to have guidance like this.
Raising Capital: Advice for Young Entrepreneurs
Kathleen Coviello: We also help young companies think about raising capital. New Jersey E.D.A. recently launched the first chapter of Golden Seeds, an angel investment group focused on women-led businesses. We often have discussions with first-time entrepreneurs about the realities of taking outside capital. It’s not a grant, it’s an investment, which means you’re giving up equity, and the investor expects a return. We advise entrepreneurs to think about whether they want a lifestyle business or if they’re aiming for an exit. It’s crucial to choose investors who align with your long-term goals, because you’ll be working with them for years.
Philip Crowley: You make an excellent point about entrepreneurs needing to do their due diligence on investors, just as investors do on companies. It’s a two-way street.
Life Sciences in New Jersey: Med Tech and Bioscience
Philip Crowley: New Jersey has a strong presence in life sciences, especially with its academic resources and proximity to major pharmaceutical companies. Can you talk more about the med tech sector?
Kathleen Coviello: Yes, New Jersey is number two in the country for med tech businesses. We have a wealth of resources, from manufacturing support to affordable lab space for early-stage companies. For instance, the New Jersey Bioscience Center provides lab spaces that range from 500 to 1,000 square feet at below-market rates, with flexible one-year leases. This flexibility is crucial for life science startups, as they may not know the outcome of their clinical trials or where their discoveries will lead. Having affordable, short-term space helps them focus on innovation without the burden of long-term leases.
Philip Crowley: The E.D.A.’s work creating collaborative spaces for entrepreneurs to network and share ideas is impressive. It really helps refine ideas and fosters innovation.
Strategic Innovation Centers: Collaboration and Growth
Kathleen Coviello: We’re expanding these strategic innovation centers. NJ FAST in Hoboken, SciTech City at Liberty Science Center, and the Helix are just a few examples. We’re also partnering with NARTP in Atlantic City for aviation-focused entrepreneurship, and there’s the upcoming AI innovation center in collaboration with Princeton University. These spaces are all about bringing people together to collaborate and innovate.
Philip Crowley: People can learn more about these centers on NJEDA.gov, right?
Kathleen Coviello: Correct. Each center has its own focus, mission, and application process, so it’s worth checking out to see which ones align with your business.
Application Processes for Innovation Centers
Kathleen Coviello: As you mentioned, each center has its own application process. For example, HAX, which focuses on decarbonization technologies, has its own process. Similarly, NJ FAST works through Plug and Play. Other centers like the Helix and Edgeworks are coming online, and each will have its own application process as well.
Conclusion and Final Thoughts
Philip Crowley: Kathleen, thank you so much for sharing all the great work being done by you and New Jersey E.D.A. I want to thank our viewers and listeners for tuning in. Be sure to subscribe to the podcast for future episodes.
Kathleen Coviello: Thank you, Phil. I really appreciate the opportunity to share these resources, and I’m grateful for all that Crowley Law does to support the innovation economy in New Jersey.
Philip Crowley: You’ve been listening to the From Lab to Patient, Garage to Market podcast. I’m Phil Crowley, and you can find this show on all major platforms, including YouTube, LinkedIn, Facebook, Apple Podcasts, and Spotify. If you found this information helpful, please subscribe, like, and leave a positive review. Thanks for tuning in!
