As an upcoming tech hub, New Jersey has often been overshadowed by more well-known tech hubs like New York City and Silicon Valley. The state offers a unique and attractive environment for tech companies, including a supportive legislative environment that favors the growth of tech businesses. One such initiative is the Technology Business Tax Certificate Transfer Program. This program allows approved companies in the tech and biotechnology industries to sell off their unused net operating losses and research and development tax credits for at least 80% of the value of the tax benefits to a profitable, non-affiliated New Jersey corporate taxpayer.
In addition to its legislative flexibility and support, New Jersey boasts a robust startup culture that fosters innovation. The state is home to a thriving ecosystem of incubators and accelerators that support existing tech companies and startups. This environment enables companies to network with each other and helps to promote a sense of community within the New Jersey tech scene.
Finally, New Jersey takes pride in its highly educated and skilled workforce, thanks to its many universities and colleges. These institutions provide a steady stream of talent and conduct cutting-edge research and development that directly benefits companies in the state and across America.
Tech Companies Founded in New Jersey Over the Years
New Jersey is home to a strong and diverse technology industry with many unique tech companies founded in the state over the years. The tech companies leverage the state’s unique tech business environment to thrive and succeed in many tech-related subsectors. Some areas in which New Jersey’s tech companies excel include telecommunications, pharmaceuticals and biotechnology, cloud computing and SaaS, cyber security, machine learning, and AI.
Over the years, many tech companies have been founded in New Jersey. The famous ones include;
Bell Labs
This company which Nokia now owns was initially founded in 1925 as the research and development arm of AT&T. The company was established in New Jersey and has been responsible for several critical technological advancements. Its areas of specialty include telecommunications, computer science, and materials science. In 1926 Bell labs invented the synchronous-sound motion-picture system. This system made it possible to synchronize sound with film after shooting. In 1937 Bell labs developed the pioneer electrical-relay digital computer. Other inventions from Bell labs include the laser and the UNIX operating system.
Vonage
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This cloud communications services company was founded in 2001 by Jeff Pulver in Holmdel, New Jersey. The company offers various services, including business phone systems, call center software, and video conferencing. Vonage’s technology allows customers to make and receive phone calls using the internet instead of traditional phone lines. This technology saves money and improves call quality. In 2014 the company was awarded two patents that ensure their VOLP users receive the best call quality and protect their security information when using public wifi hotspots. Vonage has over 240 pending patents in America and abroad and continues to invent in telecommunications.
ADP (Automatic Data Processing)
Initially known as Automatic Payroll Inc., ADP was founded in 1949 by Henry Taub in Paterson, New Jersey. ADP provides a range of human resources and payroll services to businesses of all sizes. The company’s technology automates many HR and payroll processes, such as time and attendance tracking, benefits administration, and tax compliance. Its success is significant because of sound business decisions by its leadership and quick adaptation to technology.
In 1957 ADP switched from manual payroll processing by acquiring an IBM computer to help in digital payroll processing. In 1962 it opened an office on Wallstreet to provide its payroll services to the brokerage firms on Wallstreet, cementing its reputation as a reliable record-keeping and data-processing company. This reputation has made ADP one of the world’s largest providers of record-keeping services, serving over 860,000 clients in over 100 countries.
The Biggest Tech Companies in New Jersey
A variety of metrics can determine a company’s size. The standard matrices include market capitalization (market cap), number of employees, regions of operations, and company valuation.
Market capitalization is the total value of a company’s outstanding shares of stock. It is calculated by multiplying the number of shares outstanding by the current price of each stock. For example, if a company has 10 million shares and its stock is currently trading at $20 per share, the market cap would be $ 200 million. Market cap is essential, especially to investors while buying their shares, to access which companies to invest in.
Another way of measuring the size of a company is by looking at its operations spread. A company operating in more cities and countries would be more significant than one operating in a single city and country. Additionally, a company’s number of employees can provide insight into its size. For example, a company with 10000 employees would be larger than one with only 1000 employees.
In New Jersey, the following companies have a market cap of above $500 million and employ thousands of staff across the globe.
IDT Corporation
IDT Corporation is a publicly traded tech company that went public in 1997. The company operates in the technology subsector, specifically telecommunications and payment services. IDT was founded in 1990 and is headquartered in Newark, New Jersey. The company has divested several business units and currently has around 1,500 employees. Its market capitalization has fluctuated over the years, but as of September 2021, it was around $600 Million. Over the years, the company has undergone several rebranding efforts to stay relevant. In 2020, it changed its name from IDT Corporation to IDT Technology Corporation to better reflect its focus on technology services.
IPC Systems Inc
IPC systems is a world leader in financial trading communications systems. Headquartered in New Jersey, IPC Systems, Inc. provides modern communications solutions for the financial trading industry. The company was founded in 1973, and as of 2014, the company’s market capitalization was over 1 billion dollars. IPC Systems employs more than 1,200 people globally.
The company develops financial trading communications solutions, including hardware and software products. Its solutions include voice trading systems, mobile solutions, and network infrastructure. IPC Systems also provide various tech support services to help its customers maximize the value of their communications systems.
The Largest Private Tech Companies in New Jersey
A private company is a firm held under private ownership. Private ownership means its shares are not sold to the public. They offer shareholders and issue stocks, but their stock is not issued through an IPO (initial public offering) or traded in public exchanges. To buy shares in private companies, you must be an accredited investor or purchase shares of private equity firms that invest in private companies.
In New Jersey, we have several top-tier private tech companies. Most of these companies are still growing, but some have also hit unicorn status with valuations of over $1 Billion.
CoreWeave
This tech company provides flexible and customizable cloud-based computing services to companies globally. Its clientele is spread across the finance, scientific research, and media industries. Its cloud-based services help different businesses scale their computing needs and manage the cost and complexities of scaling cloud-based services in-house. The company has raised close to $155.5 million spread across four rounds, the most recent being a dept financing round on Dec 6, 2022. The company’s success is pegged to its state-of-the-art data centers, real-time data monitoring, and a team of over 50 well-trained and experienced staff.
OwnBackup
With this era being data-driven, Ownbackup has positioned itself well enough to provide businesses with global data backup and recovery services. It uses groundbreaking software and cloud-based tech to ensure data safety for all its clients. Its’ solution is designed to protect its’ clients’ data from various threats, including human error, hardware failures, natural disasters, and cyber-attacks. Their software automatically backs up data regularly and provides multiple tools for data retrieval. They recently raised over $240 Million in series E funding and currently enjoy unicorn status with a valuation of over $1 billion.
The Largest Publicly Traded Tech Companies in New Jersey
After some time, most private companies opt to go public to raise more capital and allow the initial investors to recoup their initial investments in the company. When a company becomes publicly traded, it opens up its stock for purchase by the public through its IPO-initial public offering. This way, its stock can be traded in public exchanges to raise capital to expand.
New Jersey has its fair share of top publicly owned tech companies, according to the recent market cap figures from marketcap.com. Some of the notable mentions include
Cognizant Technology Solutions
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This leading technology company was founded in 1994 and is based in Teaneck, New Jersey. It offers technology and business consulting services to businesses across the globe in over 50 countries. It employs nearly 300,000 staff, making it one of the largest tech companies globally. its service offering includes enterprise solutions, data management, and analytics and digital platforms. Cognizant went public in NASDAQ in 1998 and currently has a market cap of about $31.51 billion.
Verisk Analytics
The global conglomerate was founded in 1971 and is headquartered in Jersey City, New Jersey. It serves many industries, including healthcare, insurance, finance, and energy, by offering its customers’ data analytics and software solutions. Its proprietary solution provides data analytics on various topics that help its clients manage risk and make better business decisions. It went public in 2009 and currently employs nearly 10000 staff in its global offices. With a market cap of almost $28 Billion, Versik Analytics cements its position as a leader in data analytics globally.
Some Forgotten Tech Companies From New Jersey
It is easy to forget companies that reigned supreme in an area, especially if they collapsed, rebranded or merged with other businesses. As a tech hub, New Jersey has had its fair share of tech greats that have since disappeared. These companies significantly influenced the New Jersey tech space in the 1800s and 1900s.
Here is a look at some of the fallen giants.
Allied Corporation
Initially founded as Allied Chemical and Dye Corporation in 1920 by Eugene Meyer and Willian Ripley, this defunct company was headquartered in Morristown, New Jersey. Its structure amalgamated five chemical companies, including Barrett Chemical Company, The General Chemical Company, National Aniline and Chemical Company, Semet-Solvay Company, and the Solvay process company. The founders’ vision was to address the shortcomings of industrial processes and production, especially after the shortages of chemicals and dyes experienced during World War 1. Its main products included chemicals and plastics. In 1981, Allied Corp merged with Signal Companies to become AlliedSignal which later acquired Honeywell and adopted its name.
Victor Talking Machine Company
This media and entertainment company was founded in 1901 in Camden, New Jersey. Its founder and inventor of the gramophone, Emile Berliner, contracted Eldridge Johnson to help design and build his inventions. The inventions improved on early phonograph designs making them less noisy and therefore suited for use in homes. One of their most popular inventions was the orthophonic victrola which used electric amplification to improve sound quality. In addition to the numerous inventions, the Victor talking machine produced classic opera and other popular music records.
The company continued inventing through the 20th century but was acquired In 1929 by the radio corporation of America. Its legacy remains alive through its phonographs and records.
Conclusion
The top technology companies in New Jersey excel in their field by incorporating advanced technology into their operations and products. These companies operate in a wide range of subsectors and have strong market positions, global reach, and positive stock performance. With a thriving tech culture, robust infrastructure, and access to top talent, New Jersey is well-positioned to continue being a significant player in the technology industry in the future.
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