Contact Us
Make My Homepage

New Business Investment Down Sharply in NJ [AUDIO]

While the flow of venture capital to new businesses and startups is on the upswing nationwide, it continues to lag here in New Jersey.

Hugh Pinney, Getty Images

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

A report from the National Venture Capital Association shows startup investment is down 78 percent in New Jersey in this year’s first quarter, compared with a year ago.

Rider University professor Maury Randall said while it’s hard to pinpoint an exact cause, New Jersey in general has long been perceived as business-unfriendly because of over-regulation, high taxes and high labor costs.

“There are many competing states that are offering better deals or making it more attractive for new companies to start up,” Randall said.

Unfortunately, one of the major laggards for venture investment in New Jersey recently has been biotech companies, which traditionally have been strong players in attracting beginning investment money.

By contrast, around the rest of the nation, venture capital investment in new startups hit its highest level in the first quarter since the year 2001. A lot of that movement was driven by software company investment.

Best of NJ101.5

Recommended For You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for New Jersey Insiders quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive New Jersey Insiders contests, events, coupons, presales, and much more delivered to you for FREE.