Read the summary and watch or listen to the interview here: https://www.crowleylawllc.com/podcasts/ai-pharma-clean-tech-more-innovation-in-new-jersey-with-judith-sheft/
Episode Introduction: Welcoming Judith Sheft
Voiceover: Welcome to the From Lab to Patient, Garage to Market podcast with your host, Phil Crowley. In each episode, we discuss professionals serving the tech startup market and the key issues affecting these companies. You can find this show on major platforms, including YouTube, LinkedIn, Facebook, Apple Podcasts, Spotify, and our website, CrowleyLawLLC.com. Now, here’s your host, Phil Crowley.
Phil Crowley: Hello and welcome! Thank you for tuning in. Our goal is to bring you insights from leaders in technology and life sciences—people with valuable experience to help you navigate product development, the dos and don’ts, and ways to demystify the process.
Meet Judith Sheft: Executive Director of NJCSIT
Phil Crowley: Today, I’m delighted to welcome Judith Sheft, Executive Director of the New Jersey Commission on Science, Innovation, and Technology. This organization plays a crucial role in supporting startups in New Jersey. Judith, welcome!
Judith Sheft: Thank you, Phil! It’s a pleasure to be here and speak with you and your audience.
Phil Crowley: Could you tell us about the commission—how it was formed and its primary focus?
Overview of the Commission on Science, Innovation, and Technology
Judith Sheft: The Commission on Science, Innovation, and Technology supports early-stage, innovation-driven startups. We offer a variety of programs, including non-dilutive grant funding, to help these companies on their commercialization journey.
We also work closely with academic institutions, fostering collaboration between startups and universities. Our goal is to leverage New Jersey’s higher education resources to strengthen the state’s reputation as a hub for innovation.
Phil Crowley: That’s a significant mission. How do companies connect with your commission, and what kinds of assistance are available?
Support Programs for Startups
Judith Sheft: We reach companies through social media, business incubators, accelerator programs, service providers like yourself, and investors in New Jersey.
We also have a website where startups can learn about our programs. Our team is small—just four of us—but we’re always open to phone calls and emails from entrepreneurs seeking guidance. A short 15–20 minute conversation is often enough for us to direct them to the right resources, whether within our programs or elsewhere in New Jersey’s innovation ecosystem.
Phil Crowley: What’s the best way for startups to contact you?
Judith Sheft: They can call 609-462-0560 or email [email protected].
Phil Crowley: That’s great information. One of the valuable aspects of your work is guiding entrepreneurs to the most relevant programs, given how complex government funding can be. Can you give an overview of the programs available through CSIT?
Popular Programs: R&D Voucher and SBIR/STTR
Judith Sheft: We offer 11 programs, which fall into four main categories.
One of our most popular initiatives is the R&D Voucher Program. This provides funding for startups to access specialized equipment, datasets, and facilities at New Jersey universities. For example, a startup might need to use a wave tank at Stevens Institute of Technology, conduct early-stage animal testing at Rutgers or Princeton, or access material characterization tools at NJIT.
We offer two versions of the program:
- Clean Tech for startups focused on reducing greenhouse gas emissions.
- Catalyst for all other industries.
Startups submit an initial application outlining their needs. If they aren’t sure which university has the right resources, we facilitate matchmaking between them and academic partners. Every two weeks, we review applications with our university partners to pair startups with the right facilities. Once a project is approved, we handle the financials, reimbursing startups after they complete the work.
Phil Crowley: That’s an excellent resource. Many startups can’t afford specialized equipment, so having access to these facilities is invaluable.
SBIR and STTR Programs
Judith Sheft: Another major program supports startups seeking federal funding through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The federal government allocates $4 billion annually through these initiatives, with agencies like the Department of Defense, NIH, Department of Energy, and NASA providing funding.
We help startups in two ways:
- Application Assistance – We fund Small Business Development Centers (SBDCs) to guide companies through the application process, including grant writing.
- Matching Funds – Once a company secures a federal Phase I SBIR/STTR award, they can apply for a $25,000 match. Companies in Phase I and II can receive $50,000.
We also host workshops, including an upcoming session in early April at Princeton Innovation Biolabs, where a federal program officer will provide guidance on SBIR funding for life sciences startups.
Phil Crowley: That’s a fantastic initiative. Many entrepreneurs struggle to navigate these programs, so having structured guidance is a big advantage.
Understanding SBIR and STTR Funding
Judith Sheft: Absolutely. The SBIR/STTR programs are managed by the Small Business Administration (SBA) and require federal agencies with R&D budgets to allocate a portion of their funds to small businesses.
Each agency publishes specific topics they’re interested in, and startups can apply for funding to develop solutions. For instance:
- NASA might seek better communication systems for space missions.
- USDA might fund projects to improve crop growth while using fewer resources.
Startups can secure:
- Phase I funding (up to $300,000) to prove feasibility.
- Phase II funding (potentially millions) for further development.
Some agencies, like the Department of Defense, also purchase products developed under these programs. Others, like the National Science Foundation, focus more on fostering innovation rather than direct procurement.
Since navigating these opportunities can be complex, we collaborate with the SBDC to provide coaching and online resources.
Phil Crowley: That’s an incredible amount of support, both financially and educationally. Entrepreneurs need this kind of guidance to take full advantage of these opportunities.
Crowley Law: Supporting Innovators
Phil Crowley: That’s certainly valuable guidance. Let me take a moment to introduce Crowley Law. We’re a boutique law firm with experienced lawyers passionate about helping life sciences and technology innovators turn their ideas into reality. Whether it’s taking discoveries from the laboratory bench to the patient’s bedside or from the garage to the marketplace, our goal is to improve society and enhance the quality of life for thousands—if not millions—of people.
As a former research physicist specializing in superconductivity, I have a deep appreciation for innovation. I understand how challenging it is to create new knowledge, and as an experienced corporate lawyer, I know how difficult it is to bring that knowledge to market. The journey from discovery to commercialization is full of obstacles, and we’re here to help.
On our website, CrowleyLawLLC.com, we offer free resources, including FAQs and an ebook titled The Top Ten Causes of Failure for Technology Startups and How to Avoid Them, which has been especially popular. If you’re working on an innovation, building a company, or have questions, we’d love to connect. You can reach us at [email protected]—we’re here to help.
NSF I-Corps Program: Helping Innovators Understand the Market
Phil Crowley: Judith, going back to federal programs, one of the biggest challenges my clients face is market analysis—understanding the demand for their innovation. I know the National Science Foundation has a program that focuses on this. Could you tell us more about it?
Judith Sheft: Absolutely! You’re referring to the NSF I-Corps (Innovation Corps) program. The National Science Foundation realized that while they were funding significant research at universities, not enough of it was making it to the market. So, they created I-Corps to help researchers and startups understand customer needs before finalizing their products.
The key to I-Corps is customer discovery—rather than presenting an innovation and asking, “Isn’t this great?”, participants must actively listen to potential customers. The goal is to determine whether their technology truly meets a market need or if modifications are necessary.
The full I-Corps program requires participants to conduct 100 customer interviews. Here in New Jersey, the Northeast I-Corps Hub, led by Princeton University and other state institutions, offers shorter courses—perfect for both academic and non-academic startups.
This approach has been so effective that other agencies, including the Department of Energy and Department of Defense, have adopted their own versions of the program. Talking to customers early on is crucial for determining whether an innovation will succeed in the market.
Phil Crowley: That’s such an important insight. I often see startups make the mistake of diving deep into the technology when presenting to investors. Unfortunately, they lose their audience right away.
The MS-ABC Framework for Investor Pitches
Phil Crowley: To help my clients make stronger pitches, I developed a framework called MS-ABC:
- M – Market
- How big is the market?
- How many dollars are being spent?
- How many patients or customers are affected?
- What gap exists that your innovation will fill?
- How big is the market?
- In life sciences, understanding all stakeholders—patients, providers, and payers—is essential. Investors want to see how an innovation can reduce overall healthcare costs.
- A – Approach
- At a high level, how does your technology solve the problem?
- At a high level, how does your technology solve the problem?
- B – Benefits
- How is your solution better than current options?
- How is your solution better than current options?
- C – Competition
- Who are your competitors?
- Even inertia is competition—people are often hesitant to change.
- In medicine, doctors don’t want to be the first to adopt a new therapy, nor the last to abandon an old one. Timing matters.
- Who are your competitors?
Startups that understand these dynamics—and communicate them effectively—are more likely to attract investors and succeed in the marketplace.
Hot Innovation Sectors in New Jersey
Phil Crowley: Judith, what are the fastest-growing areas of innovation in New Jersey right now?
Judith Sheft: We’re seeing significant growth in several key areas:
- Life Sciences – New Jersey is a global pharma hub, home to many large companies. We’re also seeing former pharma executives launching startups, alongside new graduates starting life sciences ventures.
- Clean Tech – Interest is rising in sustainable technologies, power generation, battery recycling, and green chemistry.
- Food & Ag-Tech – Innovations in food production and agricultural sustainability.
- Artificial Intelligence & FinTech – With Governor Murphy’s focus on AI, we’re seeing exciting developments in machine learning, financial technology, and automation.
New Jersey has strategic innovation centers supporting these industries, helping entrepreneurs turn ideas into scalable businesses.
Phil Crowley: That’s fantastic. One challenge startups face is connecting with the right people. Your work facilitating these connections is invaluable.
Connecting Startups with Resources
Judith Sheft: Absolutely. A big part of what we do is matchmaking—connecting companies that could benefit from working together.
For example, I recently visited an HVAC startup developing air purification technology. I realized another startup I work with was developing sensor technology for HVAC systems. I introduced them, and they’re now exploring a collaboration.
Beyond financial support, startups need talent. There are several workforce development programs in New Jersey that help:
- Internship & Workforce Training Grants – Funded by the Office of the Secretary of Higher Education and the Department of Labor.
- Postdoc Hiring Support – The Department of Labor offers grants covering a significant portion of postdoc salaries, reducing costs for early-stage companies.
It’s not just about funding—it’s about mentorship, resources, and connections that help startups thrive.
Success Stories & Key Resources
Phil Crowley: What do you enjoy most about your work, Judith?
Judith Sheft: I love that every day is different. I get to meet incredible innovators and watch their success stories unfold.
For example, Kerio Therapeutics, a company we supported, recently gained FDA approval for a digital therapy for postpartum depression. That’s incredibly rewarding!
Another company, RenewCO₂, started as a Rutgers University spinout. I first met them during COVID when the founder was working from his apartment. Today, they have a 15,000-square-foot facility in Somerset, NJ, and have raised significant funding from the Department of Energy.
For startups looking to connect with academic experts, we manage a website called Research With New Jersey, where companies can search for faculty expertise, publications, and research facilities.
Where to Learn More
Phil Crowley: Judith, could you share those key websites again?
Judith Sheft: Sure!
- CSIT Website – www.NJEDA.com/CSIT
- Research With New Jersey – Just Google “Research With New Jersey”, and it will come up.
Final Thoughts
Phil Crowley: The time has flown by! Judith, thank you for sharing your expertise and these valuable resources.
To our listeners, I encourage you to subscribe to our podcast and explore our past episodes. If you have questions, you can reach us at [email protected]. We’re here to help.
Judith Sheft: Thanks for having me, Phil!
Voiceover: Thank you for listening to From Lab to Patient, Garage to Market with your host, Phil Crowley. You can find this show on YouTube, LinkedIn, Facebook, Apple Podcasts, Spotify, and CrowleyLawLLC.com. If you found this helpful, please subscribe, leave a review, and share!
