While Silicon Valley has dominated the tech world for decades, New York City, Boston, Seattle, and Austin have all been recognized as hubs for entrepreneurs and innovation. One city right here in New Jersey looks poised to break into the technology big leagues. The Newark Renaissance, which began in the late 1990s, has been slowly building and all the right pieces are falling into place. According to Forbes, Newark just might be the next Silicon Valley.
One of the biggest catalysts that pushed Newark into the future was in 2007 when Audible, the audiobook giant owned by Amazon, opened its corporate headquarters in downtown Newark. That move brought not only jobs, but buzz and the sense that something big was brewing in Brick City. Audible founder Don Katz was determined the company would lead the way in welcoming start-ups and top-notch talent to Newark.
“Audible moved its headquarters to Newark in 2007 to help accelerate the city’s revitalization, and since then, we’ve been investing heavily to support a vibrant downtown neighborhood anchored by thriving local businesses, innovation, art, and cultural diversity,” Audible’s Global Head of Urban Innovation, Aisha Glover, told Forbes. “Our investments create jobs, sustain businesses, and attract foot traffic, generating almost two billion dollars annually in economic activity.”
Audible’s Katz helped launch Newark Venture Partners (NVP) in 2015 in an effort to make the city attractive to entrepreneurs and VCs, NVP is a venture capital fund that lends a hand to early-stage startups with funding, mentorship, and office space.
In 2023, Audible launched its Business Attraction Program, which provides startups and businesses up to $250,000 in non-dilutive grants, mentorship, and relocation assistance. The goal is to fuel Newark’s economy and recognize founders historically underrepresented in the quest for venture capital.
Audible’s Glover touts the program’s success, “So far, over 20 companies have joined the program across the innovation, retail and entertainment sectors. We aim to leverage Newark’s unmatched data infrastructure, boost local spending to preserve and create jobs, increase commercial occupancy rates, and equitably grow the city’s tech ecosystem—while leading the way in Newark’s revitalization.”
Other players in town include the New Jersey Innovation Institute (NJII). Owned by the New Jersey Institute of Technology, NJII works to connect startups, academia and industry with a focus on fintech, cybersecurity and healthcare. With more than $11 million dollars from both NJII and the New Jersey Economic Development Authority (NJEDA), the group plans to launch a new Venture Studio. The goal is to develop and nurture as many as ten new companies in the next few years.
“From a sector standpoint, we see the most opportunity and traction in combining AI tools with industries that were historically tech laggards, like real estate and construction, as well as back-office functions,” NJII President Michael Johnson said to Forbes. “In particular, the healthcare industry is gaining significant traction.”
TechUnited:NJ is another industry group bullish on New Jersey as a rising force in the tech world. They foster growth through networking, industry events and advocacy. Their United Mentorship program is designed to support women- and minority-owned businesses, while the BetterFutureBuilders Certificate tracks have introduced Newark high school students to the tech world through events and pitches.
“A thriving Newark powers a thriving New Jersey,” says Aaron Price, CEO of TechUnited:NJ. “For more than a decade we’ve convened founders in Brick City – from hosting Audible founder and CEO Don Katz on our stage years ago, to next month’s AI policy gathering – and the energy has only grown. Newark is one of the key legs that keeps the state’s innovation stool upright – when Newark rises, the entire state stands taller.”
The annual Newark Tech Week has become a must-attend event that brings founders, talent, and investors together. This past October’s highlights featured a strong focus on AI, crowded panel discussions, fireside chats with tech leaders, a demo day, and plenty of networking opportunities.
NJ Governor Phil Murphy has long been a vocal supporter of technology and innovation and launched the New Jersey Innovation Fellows Program (NJIF) through NJEDA in 2021. Much like Audible’s Business Attraction Program, NJIF supports entrepreneurs through grants totaling as much as $200,000. The program incentivizes founders from underrepresented backgrounds as well as those who operate businesses in opportunity zones. Per the City of Newark’s website, there are currently 13 opportunity zones within the city.
While nobody can predict the future, Newark appears to be poised for rapid growth in the tech sector. The city’s lower rents, available space, proximity to New York City, robust private and public support and vibrant, multicultural tech community make it attractive to investors, innovators and top-tier talent. For those ready to take a risk and build the future, one of the best bets could be Newark, New Jersey.
