Long Island, NY - December 30, 2014 - Governor Andrew M. Cuomo today announced that 13 additional businesses will expand or locate in New York State as a result of START-UP NY, joining the more than 40 companies already participating in the new initiative that creates tax-free areas sponsored by colleges and universities across the state.
The 13 businesses announced today are projected to invest more than $11.4 million and have committed to creating at least 268 new jobs in tax-free areas sponsored by Canisius College, Keuka College, Stony Brook University, SUNY Downstate Medical Center, SUNY Ulster and University at Buffalo. This latest group of companies joining the program brings the total number of businesses participating in START-UP NY to 55, representing commitments to create more than 2,100 new jobs and invest over $98 million across the State.
“START-UP NY is continuing to change the game when it comes to growing the State’s economy,” Governor Cuomo said. “By combining our State’s world-class workforce and unparalleled communities and natural environment with the chance to operate tax-free, this program is attracting the businesses that will drive New York’s economy and create jobs and new opportunities for years to come. The good news keeps coming from START-UP NY, and I am very excited to welcome these new businesses to the program.”
The START-UP NY businesses expanding in or locating to the Empire State will create jobs in several key industries, including biotechnology research and development, advanced manufacturing, education technology, data processing, hosting and services, security systems services, and software development.
The following businesses were recently approved to participate in START-UP NY: FlightPartner; GradFly, Inc.; ID Federator, LLC; Illuminating Diagnostics, LLC; Mid-Island Aggregates/Distribution, LLC; NomoCan Pharmaceuticals, LLC; Nuenz, Inc.; ProGen Life Sciences; Sensored Life, LLC; Simply Natural Clothing; Sustainable Waste Power Systems, Inc.; UTS, LLC; and Zuznow USA, Inc.
“START-UP NY has proven to be an economic activity generator; creating jobs and transforming communities across New York State,” Empire State Development President, CEO & Commissioner Kenneth Adams said. “The newest businesses to locate at tax-free areas on SUNY campuses in the New York City, Long Island, Finger Lakes, and Buffalo regions will have access to world-class resources, industry experts and advanced research facilities, and in return they will offer SUNY students the opportunity to cultivate real-world business experience.”
“The State University of New York is proud to be at the center of this economically dynamic initiative and we look forward to welcoming these newest companies to our campuses,” said SUNY Chancellor Nancy L. Zimpher. “START-UP NY continues to be a boon to our business partnerships in every region while providing exceptional access and opportunity for SUNY students and faculty.”
Each of the businesses approved for START-UP NY is sponsored by an in-state educational institution. More details:
University at Buffalo – 130 net new jobs
GradFly, Inc. is an existing education technology business based in Buffalo since 2013. The company offers a web/mobile-based platform that allows STEM (Science, Technology, Engineering and Mathematics) students to showcase work and connect to other students, colleges and employers by creating digital portfolios to document and manage their engineering projects in a single location. GradFly will locate in the Innovation Center of the Buffalo Niagara Medical Center and create 15 net new jobs while investing $45,000.
ID Federator, LLC is a new start-up company, near product launch, that provides hosted Identity and Access Management (IAM) Services and will be selling a hosted social login IAM service called Chameleon Identity. The hosted IAM market is rapidly growing and, as internet users are accumulating many login identities from various providers, website owners need better ways to accept and use those credentials to safely store and use the data provided by the users. Website owners must also comply with the social ID provider’s requirements for storing and managing their data. ID Federator will locate in the Gateway Building and create 43 net new jobs while investing $75,000.
Illuminating Diagnostics, LLC is a biotech startup company that will produce novel rapid diagnostic tests for hospital acquired infections, such as MRSA. The tests provide results in about t10 minutes, while the patient is receiving care, and do not require lab analysis. The company was founded in Western New York by a University at Buffalo graduate to commercialize the tests and obtain FDA approval for clinical use. The company will locate in the Biosciences Incubator and create 32 net new jobs while investing $1,225,000.
Nuenz, Inc. is a startup company that is being established to produce an advanced ceramic nanomaterial, silicon nitride nanofibers, which are of significant potential use in high performance composites for aerospace, automotive, defense, energy, industrial and other markets. The main customers of the technology, which was developed in New Zealand, are manufacturers of composites located throughout the United States. The company will locate in the Baird Research Park and create 40 net new jobs while investing $3,830,000.
University of Buffalo President Satich K. Tripathi said, “The addition of these companies to START-UP NY is further affirmation that this innovative program led by the governor is thriving in the Buffalo Niagara region. The program is bringing talented professionals to our region and providing opportunities to those already here. It is a terrific benefit to UB’s academic enterprise.”
Stony Brook University – 51 net new jobs
FlightPartner is a startup, software-as-a-service (SaaS) company which provides efficient air charter transportation through a global distribution system. FlightPartner leverages technology, providing air charter operators, brokers and travelers immediate quoting and booking options. The company will locate in Stony Brook University’s CEWIT Incubator and create nine net new jobs.
UTS, LLC is an existing, expanding business on Long Island with 20 years of experience in electric vehicle and hybrid electric vehicle marke. The company has developed a proprietary ultracapacitor-based energy storage system, including storage, management and controls for light, medium and heavy duty vehicles ranging from 6,000 to 8,000 lbs. GVW. The company is ready to begin commercializing its product and will be located in the Advanced Energy Research and Technology Center to create 22 new jobs while investing $1.2 million.
ProGen Life Sciences is a new business in the diagnostic substance manufacturing industry. The company will develop diagnostic biomarkers that can guide physicians in choosing the most effective therapeutic approach in clinical decision making. ProGen Life Sciences will locate at the Long Island High Technology Incubator on Stony Brook University’s campus and create 13 net new jobs while investing $1,690,000.
Zuznow USA, Inc. is a new business to both New York and the United States, having previously only had an office in Israel and no other presence in the country. The company is developing an automatic mobile adaptation platform for web-based enterprise applications. To date, 40 small and medium-sized businesses and enterprises in Israel are using the Zuznow platform to “mobilize” their applications. The company’s next target market is the United States, specifically the greater New York City area. It will locate in Stony Brook University’s CEWIT Incubator and create seven net new jobs while investing $29,300.
SUNY Ulster – 44 net new jobs
Mid-Island Aggregates/Distribution, LLC is a new-to-New York business that will remanufacture locally available mine tailings and turn them into useful construction products for landscaping, remediation, and construction projects. The company has identified numerous former mining sites, and has identified large reserves of sand, stone, and fine clay deposits scattered around the State. The company will locate in the Callahan Industries Plant and create five new jobs while investing $1,540,000.
Sustainable Waste Power Systems, Inc. (SWPS) is a new-to-New York business that provides products and services built around its patented waste-to-energy system marketed as GIPO – Garbage In Power Out. SWPS is commercializing this new, clean conversion process through manufacturing and selling small-scale, on-site, waste conversion systems with net positive economic advantages for the customer. The company will locate in Building 22 at Tech City and create 39 new jobs while investing $516,780.
Keuka College – 17 net new jobs
Sensored Life, LLC is a designer and manufacturer of MarCELL®, a home monitoring device for monitoring temperature, humidity, power, and water leaks. It utilizes the surrounding cellular network to return data to its servers – no phone line or Wi-Fi connection is needed. The company is ready to take the product and service to the market and is looking to add employees, including software engineers, hardware designers, customer service personnel and warehouse workers. Sensored Life will locate in the Keuka Business Park and create 17 net new jobs while investing $140,000.
Keuka College President Jorge L. Díaz-Herrera, Ph.D., said, “Keuka College is excited to welcome Sensored Life, LLC to Keuka Business Park. Our partnership will boost the local economy, create jobs, and allow the College and Sensored Life to partner on research, teaching, and learning opportunities. This, our first STARTUP-NY tenant, fits perfectly with our Digital Learning at Keuka College strategic initiative, through which Keuka College will be renowned as a leader in integrating liberal arts and digital technologies with experiential learning and professional practice.”
Canisius College – 16 net new jobs
Simply Natural Clothing is an existing, expanding New York State company that manufactures eco-luxe clothing and accessories for men and women. The clothing is made from organic fibers from the United States with a “farm to market” concept, using local suppliers of raw materials such as alpaca and cotton. The company is investing in their own garment machinery and creating jobs in 3D technology and related fields. Simply Natural Clothing will locate in the Canisius Women’s Business Center and create 16 net new jobs while investing $1,033,600.
Canisius President John J. Hurley said, “We are excited to get our START-UP NY initiative started by bringing the Simply Natural Clothing company to our campus. START-UP NY will not only grow our economy and create jobs but will also provide experiential learning opportunities for our students. Our business, accounting, marketing and entrepreneurship students will gain invaluable experience working with Simply Natural Clothing, a company that uses advanced technology to manufacture environmentally-friendly products."
SUNY Downstate Medical Center – 10 net new jobs
NomoCan Pharmaceuticals, LLC is a biotechnology research business new to New York State with products in development for diagnosis and treatment of cancer. The company will locate in the SUNY Downstate Biotechnology Incubator and create 10 net new jobs while investing $155,000.
Dr. John F. Williams, Jr., president of SUNY Downstate Medical Center, said, "Governor Cuomo's START-UP NY economic development plan continues to provide opportunities for SUNY to benefit the local economy. We are thrilled to welcome this exciting company to our campus and build our research and academic partnerships."
About START-UP NY
Established in 2013, START-UP NY seeks to accelerate entrepreneurialism and job creation across the State on a large scale, with a particular focus on Upstate New York. The State University of New York (SUNY) campus system, City University of New York (CUNY), and private university and college communities serve as the framework of the START-UP NY program to attract high-tech and other start-ups, venture capital, new business and investments from across the globe. Under the program, businesses have the opportunity to operate tax-free for 10 years on eligible land and space. Businesses partner with the higher education institutions, enabling them to access industry experts and advanced research laboratories.
Once a college or university is admitted to START-UP NY, interested businesses may begin to apply to the program through the sponsoring school. After a thorough and comprehensive review of an application by the sponsoring college or university as well as Empire State Development, approved businesses that create net new jobs will operate 100 percent tax-free for 10 years, paying no state income tax, business or corporate state or local taxes, sales tax, property tax or franchise fees.
To date, 61 schools have been approved for START-UP NY, including four CUNY and 15 private institutions, establishing more than 345 tax-free areas for new or expanding businesses to operate on or near campus. Each school’s approved START-UP NY plan is available online.
START-UP NY includes strong provisions to protect against fraud. Businesses are required to submit certification to ESD, and falsifying certifications is a felony. The program also includes strict provisions to guard against abuses such as shifting jobs among related entities or “shirtchanging,” when a company simply reincorporates under a new name and claims its existing employees are now new jobs. In addition, START-UP NY includes measures to prevent self-dealing and conflicts of interest. In cases of fraud, the State is empowered to claw-back benefits granted to the business. Companies that do not meet the terms of the program – including meeting their job creation targets – may have their benefits reduced, suspended or terminated. ESD has the authority to review company data to ensure that jobs have been created and maintained, and to end participation by companies that have not created net new jobs. ESD is required to publish a comprehensive annual report to enable the public to evaluate the program’s impact.
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