New Jersey’s technology sector is constantly growing. People come up with creative and innovative new ideas and are often ready to jump in and take on business formation issues. However, the actual process of starting a new business can be daunting to some. While their ideas might be great, if business formation issues are not properly handled, businesses can fail.
In order to help start-up companies from New Jersey, and around the world, succeed, New Jersey created a program called TechLaunch. TechLaunch was funded by the Economic Development Authority and other private sources in 2012. The program allows start-up technology companies to apply for a 16 week course. In the course, businesses can receive mentoring, business training and make connections with potential investors. At least half of the businesses in the program must be from New Jersey.
Over the first year of the program, 95 businesses applied and 10 companies were selected. The 10 companies who completed the program have gone on to raise $300,000 in capital.
Recently, TechLaunch has announced the members of its new class of businesses. This year, the program received 90 applications and accepted eight businesses into the program — some of which were from Passaic and Bergen counties. These businesses will now complete the program before getting the opportunity to present their companies to real investors in mid-September.
While programs like this can help take businesses to the next-level, start-up companies cannot neglect the legal issues surrounding business formation. Tough choices like entity formation, regulatory compliance and licensing requirements can set a business back. If businesses take properly take care of these issues early in the process, they may find it easier to attract new investors in the future.
Source: The Record, “NJ’s TechLaunch announces second class of start-up companies,” Mary Diduch, May 16, 2013