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Wanda Nieves, Office of Economic Development, City of Yonkers
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PACE UNIVERSITY AND CITY OF YONKERS
ESTABLISH INCUBATOR FOR NEW BUSINESSES
Only early-stage business incubator in Hudson Valley may create 300 jobs
Yonkers, NY, January 26, 2004 – Pace University and the City of Yonkers, NY today announced creation of a new business incubator for early-stage companies, located in Yonkers in 13,000 square feet of the recently renovated nValley Technology Center on Nepperhan Avenue. The announcement was made by Yonkers mayor Philip A. Amicone and Pace president David A. Caputo.
The Pace incubator is the only business incubator for early-stage companies in the Hudson Valley region. The ceremony marked the first economic development announcement by Mayor Amicone since his inauguration January 1.
Tenants in Yonkers will draw on the expertise of Pace’s well-known business and computer schools. They also will receive business and commercialization assistance and venture capital through SpringLab, LLC, a partnership of Jeff Marks, Managing Director of the Westchester Business Accelerator, LLC, an early-stage business advisory firm, and Emanuel Martinez, Managing Partner of Greenhills Ventures, LLC, a New York based early-stage private equity fund and investment banking firm.
More advanced than start-ups, “early stage” businesses have a product that works and initial sales. For all new businesses, incubators provide low-cost space, economic incentives, and assistance in general business techniques and commercialization.
Manhattan link. Pace also announced that it is creating a second business incubator in New York City. Housed at 163 William Street, on Pace’s downtown campus near City Hall and six blocks from Wall Street, its facilities will be available to tenants of the Yonkers incubator.
Pace will operate both incubators under the name of SCI2 (Second Century Innovation and Ideas Corporation), a not-for-profit corporation affiliated with the university (www.sci2.org). Companies interested in the commercialization assistance of the SCI2/Springlab partnership, and/or that wish to apply for residency in the new SCI2 Yonkers or New York City incubators should contact SCI2 Executive Director Victor Goldsmith, PhD, at 212-608-8282 or email@example.com.
The nValley Technology Center, a local non-profit development corporation, was developed by the Yonkers Industrial Development Agency (YIDA), which bore the estimated $2 million cost of renovations. Pace will share in the increased economic value of successful incubator companies.
Pace expects the new incubators to provide practical experience for students, help keep faculty members at the cutting edge of new developments, and assist in the economic development of the Hudson Valley region and beyond.
300 jobs. Said mayor Amicone, “For forty years this facility was owned and occupied by Purdue Fredrick Pharmaceutical, and from here Purdue grew into an international company. Under the guidance of Pace we see the products of the new incubator following a similar path.”
“Clearly, this is a superb location,” he added. “It is within three minutes of three major parkways and highways, five minutes from Metro North Railroad and the soon to be announced ferry service to Battery Park city. It is within the New York State Empire Zone and the federal Empowerment Zone, which allow businesses to operate virtually tax free. The cost of doing business in Nepperhan Valley is a fraction of what it would be in Manhattan or White Plains. The building is wired as a smart building and is connected to the ATM switch which provides ultra high speed data transfer.”
Amicone pointed out that the nValley Technology Center is the first building to be redeveloped in the Nepperhan Valley district and said, “We believe this will be the spark to ignite a complete redevelopment of the entire valley.”
“We expect that within twelve months over three hundred new jobs will be created at the nValley Technology Center,” he said. “We are very pleased to have Pace University join us in the continued re-growth of our city, which has re-emerged as one of the premier cities in which to live and work in the State of New York. With institutions like Pace joining us, we are confident that the effort will continue to grow. This is only the beginning of what promises to be another great step forward for the City of Yonkers.”
Future CAT. Said Caputo, “We are pleased to be leaders with Yonkers in helping create this new economic engine for the Hudson Valley. It fits our motto of ‘opportunitas’ by offering superb professional advice from our business and computer schools, and by giving our students and faculty members exposure to entrepreneurial opportunities. It also should bring us some additional revenue. We are particularly excited by the partnership with SpringLab and with its partners, the WBA and GreenHills Ventures.”
Caputo added. “We’re the largest institution of higher education in Westchester County, so we have a strong obligation to share our expertise and take an active role in economic development.”
“Looking ahead,” Caputo said, “we hope this incubator will be the catalyst for a Center for Advanced Technology. CATs have been created under the New York State Technology and Research Program in 13 regions of the state. The Hudson Valley is overdue for one.”
Said Martinez, of GreenHills Ventures, “This joint venture incubator will greatly improve our ability to make investments in promising early stage companies. Our ability to combine our intellectual capital and disciplined proprietary approach towards investing in early stage businesses gives those companies a greater chance to succeed. We are very excited about our partnership with Pace University and look forward to seeing some of our companies graduate into the mainstream.”
Tax incentives, student help, boot camps. Qualified early-stage businesses locating in the Yonkers incubator will benefit from factors including:
· Below market rents.
· Tax incentives and access to low cost loans, available because of the incubator’s location in both a New York State Empire State Development Zone and a federal Empowerment Zone.
· The active involvement and expertise of Pace University faculty members and graduate and undergraduate students. These are expected to come primarily from Pace’s Lubin School of Business and Pace’s computer school, the School of Computer Science and Information Systems.
· Top quality business development advice and, when appropriate, funding including seed financing or venture capital funding.
· Access to venture capital boot camps, via the partnership with SpringLab, that will help with presentation skills and provide exposure to top venture capital firms seeking to make early stage investments.
Partners. The nValley Technology Center is a former Alexander Smith Carpet Company factory, built in 1922. Purdue-Frederick Scientific Laboratories, now Purdue Pharma L.P, later used it for pharmaceutical research. The company sold the building to the YIDA for $1 in 2000 on condition that it be used for economic development.
New York State has roughly 25 incubators and North America has approximately 950, according to the National Business Incubation Association.
Pace University is a comprehensive, independent university committed to opportunity, teaching and learning, civic involvement and measurable outcomes. It has campuses in New York City and Pleasantville, Briarcliff and White Plains, N.Y., and a Hudson Valley Center at Stewart International Airport near Newburgh, N.Y. More than 14,000 students are enrolled in undergraduate, graduate and professional degree programs in the Dyson College of Arts and Sciences, Lubin School of Business, School of Computer Science and Information Systems, School of Education, Lienhard School of Nursing and Pace Law School. Www.pace.edu.
GreenHills Ventures, LLC is a New York based early stage private equity fund (GHV Fund, LP) and investment banking firm. It applies financial management expertise coupled with direct investment to help companies achieve enduring, high growth businesses. Its proprietary, milestone-based ProjectScope™ investing process establishes strong business fundamentals and helps increase company valuation while preserving investors’ and founders’ equity. The firm takes a value added, hands-on approach to investing. It works closely with companies and entrepreneurs to help them achieve measurable and quantifiable milestones by providing business focus, milestone planning, strategic guidance, and access to key industry resources in order to achieve a sound and viable business. Its comprehensive network of high quality external investors and strategic corporate partners helps companies execute their plan better and cost efficiently. Through its extensive investment and professional resources, vast collective experience, and access to direct co-investments, GreenHills Ventures helps early stage companies validate their business approach and turn themselves into viable, profitable, mature and high growth enterprises. More information is available through www.GreenHillsVentures.com
The Westchester Business Accelerator, LLC, is a Westchester County-based advisory firm whose objective is to strategically access and integrate the intellectual capital and resources of Westchester County to stimulate economic development and job creation for the early-stage business sector. For businesses needing assistance for funding and/or growth opportunities the WBA offers access to a strategic network of the County’s business leaders and financiers. The WBA has assisted entrepreneurs to identify private equity funding, strategic alliances, go-to-market intelligence and government assistance. The WBA has a partnership with the Westchester County Association and the Westchester Venture Group that integrates their membership and networks of partners and specialists to provide intellectual capital, growth alliances and funding.