On Tuesday, Gov. Phil Murphy (D-NJ) delivered remarks during the ribbon cutting at HAX HQ in Newark.
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NewsTranscript
00:00Good day everyone and welcome to the grand opening of the new headquarters
00:26for SOSV's HACS, the world's first and most active program for pre-seed hard
00:33tech startups. We are very proud to be here in the great city of Newark in the
00:38great state of New Jersey. My name is Naomi Stephens. I'm the program
00:43coordinator at HACS. I am also a proud Newark native born and raised
00:50and still a resident, I must add. I would like to welcome all of you here today
00:59and I would like to recognize that joining us for this great occasion is
01:03the governor of New Jersey, the Honorable Phil Murphy and the mayor of Newark, the
01:13Honorable Roz Baraka. We are also very happy to have Tim Sullivan, the CEO of
01:23the New Jersey Economic Development Authority.
01:31Now I would like to call to the stage Duncan Turner, who is the managing
01:36director for HACS and also general partner at SOSV, the venture firm behind
01:41HACS. Please welcome Duncan.
01:49Thanks Naomi and a special thanks to Governor Murphy, to Mayor Baraka and to
01:59everyone from the NJEDA but especially Tim and Kathleen. You all really made
02:03this happen. It's incredible. Thanks for welcoming us to New Jersey and more
02:07importantly to Newark. News broke that we were going to be relocating our
02:13global headquarters to Newark back in September of 2021. It was a big moment
02:19for us and part of a much longer history of HACS, which has been 12 years in the
02:24making. I was actually there on the very first HACS as a mentor 12 years ago to
02:29share some of my experiences as a hardware founder of quite how difficult
02:33it'd be, how difficult it'd been to launch a hardware product without the
02:39type of support that we offer here. It's really tough. HACS's vision from the
02:44start has been to help founders make the impossible the impossible inevitable.
02:49SOSV's strength is in finding ecosystems we can leverage to help make that
02:53happen. We've shown that in San Francisco, in Shenzhen and in Tokyo. These are all
02:59areas where there are unique capabilities to really accelerate
03:03hardware and the next technologies that will define our future. We've always
03:09invested in founders that are addressing problems or opportunities in the US
03:13market. In 2018 we saw that our industrial investments were starting to
03:18change from productivity to addressing one of the biggest problems in the world
03:22which is climate change. As we started to invest more in these companies they
03:27started to expand in size and scale from what we used to be able to fit into
03:30a shoebox to something we could no longer fit into a container. At that time
03:35we realized we needed a presence in the US to serve the founders that we were
03:39investing in. Then in 2020 something else happened, COVID. That was fun wasn't it?
03:46That showed us the fragility of our supply chains and how the US
03:51needed to re-industrialize. So there are two things happening at that time. There
03:56was a fight against climate change and there was the need to create all of
04:01these new technologies within our borders or in our friends' borders.
04:04There's been a historic investment in making this happen. Somewhat echoing the
04:09investment in the shale industry which is all about energy independence, except
04:13for these days we're not investing in pumping oil out of the ground, we're
04:16investing in new technologies that are going to completely rewire both
04:19physically, figuratively and literally the US industrial landscape. From
04:25electrification to reshoring manufacturing. So we're now investing in
04:31companies that are not just hardware but also chemistry. In order to do that we
04:34had to recruit some world-class talent. Very excited to have Chief Science
04:38Officer who is a PhD in chemistry, Susan.
04:47Andy thought he was going to get away from this but he runs the investment
04:50side and is by background a chemical engineer, although he doesn't like to
04:53admit it, who have been helping both B&G, our Chief Technical Officer, who have been
05:02here a long time in accelerating these new types of technologies. But more
05:11importantly it was about finding an ecosystem birthplace for the
05:15re-industrialization of the US. A place we could find world-class talent, close
05:20to some of the largest industries in the world, and land to expand with
05:24industrial heritage and an infrastructure that can support a lot of
05:28the companies that we're investing in, to help them get to their next phase. Newark
05:32really has all of this. It's got industrial heritage, it's got truly
05:36exceptional universities which are literally a stone's throw away from us,
05:40academic departments that are developing not just IP but also talent that will
05:45shape the world for generations to come. We're a train ride from two of the most
05:50important destinations for venture capital for hard tech companies. That's
05:54Boston and New York. This really is a truly unique place to build something
05:59like this. And so here we are at start, 35,000 square foot space with mechanical
06:05labs, electronics labs and chemistry labs, everything we need to fuel the
06:10development of startups. Bold as a start but tiny in comparison to the potential
06:15here. We've got over 25 teams working to change the world, everything from equitable
06:21access to healthcare to redefining manufacturing. Those teams have already
06:26raised 50 million bucks on top of the 15 million that we've invested and we're
06:30just starting. Plenty more to come. Many of these teams have decided to base
06:35themselves in New Jersey, like Solana, one of our companies actually from Austria,
06:38who developed the technology to take apparel manufacturing back from
06:43Southeast Asia, decided to stay here as most of their customers are actually in
06:47New York. Hacks has also built an awesome team. I'm not going to name
06:54everyone, there's 10 of us here and it goes beyond that to 25 in the global
06:59ecosystem. It's 24-7 support in design engineering, mechatronics and chemistry.
07:03It's truly an incredible system that no one else offers. And we expect that many
07:09of the founders we've invested in will see some of the advantages we have in
07:12staying in New Jersey, basing their businesses here and bringing thousands
07:17of jobs to the Garden State. I want to thank you all for joining us. Thanks
07:22again to the VIPs here for making this happen and we look forward to building a
07:27successful future. Thank you.
07:43Thank you, Duncan. As everyone can now see, incredible startups are already hard
07:49at work here alongside our dedicated hack staff. Now I have the great pleasure
07:55to invite Governor Murphy to come to the stage. Thank you for joining us, Governor.
08:02Thank you, Naomi, a proud resident of the Brick City. Duncan, thanks to you and
08:13your colleagues. I'm not sure what happened to Duncan. There he is. And in absentia,
08:18Sean O'Sullivan, who I'll come back to in a moment. Most importantly, Mayor Raz J.
08:24Baraka. Mayor, God bless you. Another big day for Newark. Tim and Kathleen have
08:32already been acknowledged. I also want to acknowledge Eric Brophy on our team
08:36and Wes Matthews, who is the CEO of Choose New Jersey. Senate Majority Leader
08:41Teresa Ruiz, Senator, always an honor. Chairwoman Ileana Pinto-Marin
08:47from the Assembly to the other officials here, Tech Limb from NJIT, its president,
08:53incredibly honored to be here today. I want to dispel a couple of myths about
08:58what I'm dressed in this morning. In the elevator on the way up, we discussed this.
09:04I was advised to take credit that I was dressed accelerator cool. I wish that
09:13were the case. Secondly, I've already apologized to the mayor that I was
09:17dressed down, but he pointed out he's wearing his special kicks as well today.
09:21And thirdly, there is no truth to the rumor that I wore this way in these
09:26shoes because I had taken our dog to a gravel pit. Making sure you're paying
09:33attention out there. The most important thing I want to say, and Sean wanted to
09:39be here today and could not, Sean and Duncan and colleagues could have planted
09:46the Hacks flag literally anywhere in the world, literally anywhere in the world,
09:51and they chose Newark, New Jersey. I think it is among, if not the most
09:56significant win that we have had in my time in office, and Mayor I suspect yours
10:02as well. This is a huge, huge deal. Now New Jersey, even in the dark days of
10:10irresponsible fiscal management and other challenges over the years, we held
10:19our, Phil Elijah is with us. Phil, I didn't see you buddy. Chief of Staff of the County
10:23Executive here. We held our own with big companies. The Johnson & Johnson's,
10:30Prudential's, Merck's, etc. for the most part hung on, thank God, to their heritage
10:39in New Jersey, and thank God they did, and they are now, they continue to be big
10:44powerhouses, but we lost our way in the startup community. Tim, I think you'd
10:50agree with that. We just didn't have the rhythm that we had back in the day when
10:56Bell Labs was in its heyday 30, 40, 50, 60 years ago, and we committed from moment
11:04one, the mayor committed from his moment one, that we were going to turn that
11:08narrative around, and there is no better example of that becoming a reality than
11:13Hacks. Now this hard tech hub is going to be transformative. It already is. I had
11:22counted, Duncan, at least 40 companies that you're nurturing so far. I had, my
11:28eye had hit Solana. There aren't many companies that go from Austria to Newark.
11:31That's not a daily event. That's one that caught my eye. Transforming
11:36literally the way industrial sewing is taking place in a sustainable manner, and
11:42a way that we could do it on-shoring and not giving up that element of
11:47manufacturing to, largely to Asia. Purely, which is another one that caught my eye,
11:53which is sustainable extraction of lithium. The need for lithium is going up,
11:58not down, and be able to do that sustainably is a big deal. I believe that
12:02had a Princeton University nexus to it, and I know you've worked closely as you
12:08nurture these companies with Princeton, with NJIT, with Rutgers, and with other
12:15institutions of higher ed. So there's a lot to be excited about today. This is a
12:21play, if I may say it this way, this is a play that we have run and we will
12:26continue to run. So Tim and Kathleen stepped up and put 25 million dollars to
12:33work in this as a full partner with SOSV. And again, I can't say enough good
12:39things about Sean. In fact, he and Tim and I were on yesterday talking about the
12:45huge opportunity that is before us as a nation, and I think as a state and city
12:50in biomanufacturing, which is something that's gotten a lot of attention,
12:54including at the White House. We were on the West Coast a couple of weeks ago and
13:00we saw IndieBio, another SOSV entity out in San Francisco. We had a very
13:08productive trip to California, largely generative AI in the Bay Area, and then
13:16film and television in greater Los Angeles. And so I mentioned that this is
13:22a play that we're going to run, we'll continue to run. We're going to have a
13:25big FinTech announcement in a couple of weeks, in fact maybe next week as I think
13:30about it. We announced, you probably saw in December with Princeton, a big
13:35incubator, similar hub on generative AI. It is a play, we're doing this at the
13:42Helix, which is a life sciences angle in New Brunswick. As I say, this is a play
13:50we have run and will continue to run, and there's no better example of how
13:53transformative it can be than HACS. So Duncan, to you and your colleagues, we
14:00can't thank you enough. We wear your presence here, I know the mayor agrees
14:04with me, as a badge of honor. And the good news is, this is tangible, you can
14:10touch it, you've got your operation here, but without question, the best big
14:18booming days are still in the future. This is not, we're not putting a bow
14:23around something that's taken place. This is a start, and it's the start of
14:27something really, really big. Am I introducing the mayor or are you coming
14:31back up, Naomi? You're going to come back up? Thank you all.
14:35Thank you so very much, Governor Murthy. We are all deeply grateful for your
14:48support here at HACS. I would also like to quickly acknowledge Senator Ruiz and
14:54Assemblywoman Marin. Next, I would like to welcome Mayor Baraka to the stage.
15:06She's doing a great job. West Ward, West Ward, Newark, in the house. How you doing
15:22Senator, Assemblywoman, how you doing? Just want to first thank Governor Murthy, the
15:28EDA, for having a sense to get with SOSV and bring HACS here to the city of
15:34Newark. I want to thank Susan and Duncan for giving me the tour. I had the
15:40opportunity to see firsthand some of the companies that are here extracting the
15:44lithium, doing something with copper, trying to figure out how to store
15:48alternative energy, and the company you talked about from Austria actually
15:53hooked up with a Newark manufacturer, Unionware, over in the North Ward, right?
15:58So that's amazing to me. So we're actually a long, long way from Seth
16:08Boyden and patent leather, and when we had 200 patent leather plants here in
16:12the city of Newark, Thomas Edison, and the ticker tape machine, or whatever
16:19that was, and celluloid for cameras. So we actually have a history of
16:24manufacturing and industry here in the city of Newark. From the very beginning,
16:29from the very on start, people came here for manufacturing, for industry, for jobs
16:34next to the port, one of the second largest seaport in this nation, arguably
16:39the first largest seaport in the nation, which becomes incredibly important as
16:43we're having these international supply chain issues. Newark seaport becomes
16:48incredibly important for all of us, and being able to bring all of these things
16:52in-house, so we don't have to worry about South Asia or wars happening
16:58all over the world. We can actually have manufacturing here in New Jersey, but
17:03more importantly in Newark. So I'm glad you chose New Jersey, but I'm even more
17:07happy that you chose Newark. So I think that, you know, we're happy that EDA
17:18decided to invest a significant amount of money in this venture, but more
17:23importantly, I think the things that we offer are a lot more material and
17:29tangible, even more so than even the money. We have the president of NJIT
17:34here with us today, and the incredible talent that he churns out every single
17:38day at NJIT. Those students have jobs before they even graduate from the
17:43university. That kind of talent right down the street is incredibly important
17:47Our transportation infrastructure is incredibly important to the work that's
17:51happening here. I think that the company Hatch choosing this area creates all
17:57kinds of opportunities for us up and down this corridor in tech and hard tech
18:02and soft tech at the same time. So I'm excited about it. I know most of us,
18:07if you go talk to those folks, you need a physics degree, a chemistry degree, and a
18:10few other degrees to kind of understand what's happening there. One thing you
18:14will know is things are being made right here in the city of Newark, and we get to
18:18say when when it blows up and things happen, figuratively blow up, we don't
18:25want anything to blow up in there, when things happen that it started up
18:32right here in the city of Newark. So I'm excited about that. Thank you for
18:37choosing Newark for being a partner with us, and we consider you family. All you
18:40need now is a key and one of the zip codes right here in the city of Newark
18:45so you could be a part of us completely. God bless you. Godspeed.
19:02Thank You Mayor Baraka. Speaking as both a member of the Hatch team and a proud
19:08citizen of Newark, we are so proud to be a new and thriving part of this great
19:14city. Next I would like to ask Tim Sullivan, the CEO of the New Jersey
19:20Economic Development Authority, to come to the stage.
19:29Thank you so much. I did not get the memo on cool sneakers. I'm here representing
19:35the Stiffs. Role I was born to play. Thank you Governor. That was a little
19:41loud Budget Chairwoman. It's a little too enthusiastic of making fun of me.
19:48It's really great to be here. I think the Governor and the Mayor put it so well.
19:52I just want to add a few thank yous and a few bit of a story of how this came to
19:57be. This, as the Governor said, I think picks up all the themes that he has
20:03led us to be focused on across the administration, but particularly within
20:06the EDA since his time in office. Innovation, clean energy, reshoring
20:11manufacturing, all that. I'll come back to that in a moment. But I think it's
20:15also, it represents a real strategy to not just compete, but win. I remember that
20:20this all comes together. I got a phone call from Kathleen Coviello, who's one of
20:23the great people in the world and who's responsible for all of our efforts
20:26around innovation and entrepreneurship at the EDA. When she heard the Governor
20:29was going to be Governor and was focused on what he was focused on, it was a good
20:32day at the office for Kathleen. Kathleen calls me up, and this is during
20:36the pandemic. This is in the days of, we were sort of in the vaccine moment, but
20:39we were still not sure what the world was going to look like. And Kathleen
20:42called up and said, you know SOSD and Sean O'Sullivan? I said, I know of them.
20:45I said, they're going to go, they're going to go big. There's going to be a
20:48big competition and we've got to get ready to play to win. I said, okay, got
20:53it. Called up the Governor, called up Evan Weiss at the time, a few other
20:55folks, George, Joe Kelly and a few other folks and said, we've got to play to
20:59win. And the next phone call I made was a cold call to Sean O'Sullivan. I didn't
21:04text first saying, hey, it's Tim. I'm going to give you a buzz. I didn't send
21:06him an email. I didn't have a letter sent. Rang him up, said, Sean, my name's
21:10Tim Sullivan. I've been directed by Governor Murphy to call you and tell you
21:14that we hear there's a competition on. New Jersey intends to play and play to
21:18win and failure is not an option here. We're going to win this thing. And he
21:21said, okay, there will be a process. So you should fill out all the right forms
21:24and make sure your proposal is good. But I appreciate the, I'm paraphrasing here,
21:28but I appreciate the Jersey moxie that comes with intent, declaring victory
21:33before the game started. But we knew this was the big one. This was a, this was a
21:37huge opportunity for New Jersey and for, and for Newark. And the reason this
21:40becomes a Newark opportunity, one, knowing the mayor's leadership and
21:43support, but I got a phone call a couple days later from Aisha Glover, who in
21:46addition to being, having a permanent job supporting the mayor's agenda around
21:50economic development, is a member of the EDA board. And she said, I heard about
21:53this HACS thing. It's got to be Newark. New Jersey's great, but it's got to be
21:57Newark. And she made the case and said, the mayor's going to love this. Said the
22:01city's going to support it like crazy. And we said, huh. And George Santos is one
22:05of the Essex County sleeper agents inside the EDA, along with Ty Cooper, who
22:09supports all things Newark and Essex County. Said, yeah, it's a good idea. She's
22:13right. And so we, we put our, put our, went to work with some funding that was
22:19provided in the state budget. Thank you, budget chairwoman. That continues to be
22:22funded in the budget. Thank you, hopefully, for this year as well, to
22:25continue these kinds of programs. And we, we put our best foot forward and we won
22:29that national competition, that global competition, that the governor mentioned.
22:32So I want to say thank you to our team, Kathleen principally, but Ron McKayla,
22:36Clark Smith, George Santos, Ty Cooper in absentia, Choose New Jersey. Jose was
22:39running the show at the time. It was also a huge supporter. And Wes and his
22:43colleagues have been great partners in cementing this over the years. But again,
22:48just want to really hit a couple themes real quick, I promise, that this brings
22:51together. One, since the governor's earliest days in office, and I think back
22:54to candidate Murphy, talked about not just wanting to be number one in
22:58innovation and reclaim that legacy of innovation entrepreneurship, but we want
23:02to be the most diverse and inclusive entrepreneurship ecosystem in America.
23:06And that's a lot easier said than done, but how do you do it? You invest in
23:10programs like the Black and Latino Seed Fund that the governor funded, two
23:15budgets in a row. Thank you again, budget chairwoman. You do it with things like
23:19the Innovation Fellows Program, which is sponsoring and funding 30 founders,
23:23primarily women and people of color, the majority leaders, the principal funder
23:27and sponsor of that in the legislature. Thank you, majority leader. And you do it
23:31by making a big bet like HACS in Newark, one of America's great cities, one of
23:36New Jersey's great cities, but that is home to people from all over the world
23:39and represents diversity in all its many forms. We're going to do this here, and
23:43it's going to mean that we're going to create jobs for young people in Newark
23:47and their families and put food on the table for people in
23:50Newark and New Jersey and live those values of diversity and
23:56inclusion in what we do here. The other is this is a really long-term bet, and
23:59the dividends of what we're seeing, we've heard about some of the cool companies
24:03and I hope they all make it and turn into the next, you know, household name
24:06and you know, multi-billion dollar company. I hope they all do. Duncan, they
24:09all will, right? Everything guaranteed. That was in the contract. There's
24:14guarantees. I think go check. Kathleen negotiated hard. But we don't know. We
24:17don't know what's going to happen here, but we know that as the mayor said, what
24:20happens here is going to reverberate around the world. We're going to have
24:22lots of success stories, not just today and tomorrow and this year and next year,
24:26but 5, 10, 25 years into the future. And so when the governor talks about
24:30building our innovative capacity and our capacity to spawn the next generation of
24:35great companies, but it's engines of innovation, like hacks, that are going to
24:39drive the outsized growth that we want to see and need to see from our
24:44innovation economy. So this is a really big deal. The third point I'll mention
24:47really briefly. I know Kay Clinger's here, who used to lead the charge on the
24:51governor's clean energy agenda before Evan stole her, which is disappointing,
24:55but probably good for them. We are counting on innovation to solve things like the
25:00clean energy puzzle. We know what we need to do, exactly how we're going to do it,
25:04no one really is positive. So innovation and entrepreneurship and research and
25:08development at places like HACS and places like this, that's how we're going
25:11to get home on not just the governor's clean energy goals and agenda, but the
25:15world's needs around clean energy. And so this is a really important investment
25:19that the state's made, that the governor's made, that the mayor's been a
25:21great partner in, in driving on lots of different things at once. No pressure, but
25:25there's a lot riding on this. There's a tremendous amount of opportunity and
25:29upside here. We're committed to being supportive every step of the way as we
25:32have been, but we're really excited. It's great to be here. I remember when
25:35Kathleen and George and Ty and others of us, Evan, Jose, were touring the space
25:40when it was raw, back when we were pitching this, and I didn't think it was
25:42going to look like this. So congratulations, well done. This is a great big day for
25:46New Jersey and for Newark. Thank you very much.
25:56Thank you, Tim. The HACS team is incredibly grateful to you and your NJEDA
26:02colleagues, which have now become family, for bringing about this alliance with
26:05the state of New Jersey. Now we have one more very important speaker, but sadly
26:11this one could not be here in person, so we have a brief message we will play on
26:15the monitors. Here is Sean O'Sullivan, another proud resident of New Jersey and
26:21also founder of SOSV and the managing general partner of the firm. Over to you,
26:27Sean.
26:29Hello, everyone. I am so pleased that the HACS grand opening is finally here and you are there to mark that occasion in person.
26:38Unfortunately, responsibilities to my alma mater, RPI, Rensselaer Polytechnic
26:45Institute, required that I be in New York, in Troy, New York today. Governor Murphy,
26:52Mayor Baraka, and Tim Sullivan, we are so proud that you are able to join us. Thank
26:58you for your presence here today and for your remarks and support. You know, my
27:03wife's family was from Newark. My brothers-in-law went to St. Benedict's
27:06down the street and Newark has had a great role to play in the success of
27:11America in the past and in the America of the future. I'm a resident of New
27:17Jersey and I have to say I love it here. It's a great state and the origin of so
27:22many industries and so much innovation in the United States and the world, from
27:26manufacturing to materials, from pharmaceuticals to telecommunications. It
27:32means a great deal to the HACS team and founders working here as we look to lead
27:38the birth of the decarbonization of industries and the reinvention of the
27:45means of production of goods, of energy, and of our agricultural and food systems.
27:52SOSD's HACS has previously helped in the creation of hundreds of startups that
27:58have raised billions of dollars in helping to define the physical world.
28:02We're hoping to do much more of this work from our new headquarters here in New Jersey.
28:08As I'm sure Duncan has already noted, the state of New Jersey showed
28:14tremendous foresight when it decided to support the establishment of the HACS
28:19headquarters in Newark. It is the perfect location for HACS for so many reasons,
28:24not the least because SOSD, with NJMedia's backing, has been able to build an
28:31incredibly well-equipped and staffed facility that is attracting the deep
28:35tech founders we want to buy. These founders hail from all over the country
28:40and the world, and from their perch here in Newark, they have a great opportunity
28:45to take in all the immense possibilities and resources New Jersey has to offer,
28:50from ample room to put down roots in New Jersey, to leveraging the great depth of
28:55human talent available at the great universities, research institutions, and
29:00corporations from across New Jersey and the region. The main aim of the SOSD-HACS-NJMedia
29:09partnership is to provide a launching pad for these new, great startups to
29:15address the challenges of climate and health, helping to heal the planet and
29:20provide for better human health. These new technologies will bring jobs to New
29:25Jersey and both hope and solutions to problems the world urgently needs to
29:31solve. We are already well on the way to accomplishing that, and we are very proud
29:35and blessed to do that here in Newark. Thank you once again for attending our
29:41grand opening today. Now, let's move on to the ribbon cutting. Back to you, Naomi.
29:54Thank you so very much, Sean. Now that completes our round of speakers for
30:00today, thank you all for your support and HACS and its mission to advance human
30:05and planetary health, as well as bring jobs and technology investment to Newark
30:09and New Jersey. Now, it's time for the ribbon cutting. Could the following
30:15people please join us on stage? Governor Murphy, Mayor Baraka, Tim Sullivan,
30:25Kathleen Covello, Duncan Turner, Susan Schofer, G. Ke, and Andy Golick.
30:39Governor Murphy, Mayor Baraka, Tim Sullivan, G. Ke, and Andy Golick.
31:09Governor Murphy, Mayor Baraka, Tim Sullivan, G. Ke, and Andy Golick.
31:39Thank you.