Pennsylvania Governor Rendell Announces Venture Capital Partnerships in Emerging Technology, Life Science Companies
HARRISBURG, Pa., April 24 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell said today that even as Pennsylvania continues to be a hot spot for venture capitalists, the state is actively working to attract new investments that will create opportunities in rapidly growing industries.
The Governor said the commonwealth will leverage $20.2 million to attract an additional $60.6 million from five venture capital firms. The venture capitalists will use the state's investments to inject fresh funds in companies facing rapid growth, such as clean energy development, life sciences, security and information technology.
"With these investments, Pennsylvania is breathing life into entrepreneurs' innovative ideas. This stimulates growth in new technologies, creates jobs and helps us to continue providing the necessary funding that will help these emerging companies grow and succeed in today's competitive marketplace," said Governor Rendell. "We have established a strategy to close the funding gaps that often cause new emerging companies to falter.
"Through the New PA Venture Capital Investment program the state is enticing venture capital firms to invest in growing Pennsylvania companies - and to invest three-times more than the amount of the state's commitment. At the same time, we are reaching out into the global marketplace to attract foreign investment in Pennsylvania. This will also help us create jobs and new opportunities."
The New PA Venture Capital Program, part of the Governor's innovative $2.8 billion economic stimulus package, addresses the growing needs of Pennsylvania businesses by providing $60 million in loans to venture capital managers, which leverages another $180 million in private equity, for a total investment of $240 million.
To date, the Commonwealth Financing Authority, or CFA, has committed more than $50 million of the $60 million available through the New PA Venture Capital Investment Program.
The CFA is a seven-member board created to administer and fund projects from programs created by Governor Rendell's Economic Stimulus Package. In addition to the Venture Capital Investment program, the CFA also oversees Building PA, Business in Our Sites, the Tax Increment Financing Guarantee, First Industries Fund, New Pennsylvania Venture Guarantee, PennWorks, and the Second Stage Loan programs.
During the next several years, nearly $1 billion in venture capital funding will be available to Pennsylvania's companies as a direct result of public/private partnerships, which will enable the commonwealth to continue attracting and retaining high-growth firms. The available capital, coupled with early-stage investments and Pennsylvania's strong university research and development presence, has created an ideal environment for venture capital investments throughout Pennsylvania.
Pennsylvania has been recognized as a hot spot for such investments. In 2006, the National Venture Capital Association reported that the state was sixth nationally for total investments made by venture capital firms.
The following venture capital investments were approved by the CFA:
Allegheny County:
Birchmere Ventures received $5 million in capital commitments for Birchmere Ventures IV. The fund will invest in early stage technology and life science companies. Birchmere, with offices in Pittsburgh, plans to invest in companies with a focus in advanced technologies, software, communications, medical devices, and durable medical equipment.
Erie County:
SB3 Capital and Erie Management Group received $7 million in capital commitments to invest in financial services, logistics, security, renewable energy, and information technology companies. Northwestern Pennsylvania will be the target area for the majority of the fund's investments.
Lehigh County:
Originate Ventures received $5 million in capital commitments to seek investment opportunities with a focus on medical devices, healthcare, diagnostic technology, and product distribution companies. Originate will focus their investments in early stage and emerging growth companies in Eastern Pennsylvania.
Philadelphia County:
Blue Hill Investment Partners received $1.25 million in capital commitments to make investments into early stage advanced energy and industrial technology companies. Blue Hill's specialty is making investments that help companies improve their sales operations and recruit senior level staff.
SVM Pennsylvania-Israel Development Fund received $2 million in capital commitments to make investments in growing Israeli companies that pledge to establish their United States presence in Pennsylvania. The fund will target investment for research and development, product improvement, marketing, and management recruitment to ensure these companies prosper in the commonwealth.
In January, the Ben Franklin Technology Development Authority or BFTDA also committed $3 million to the Pennsylvania-Israel Development Fund to strengthen the state's ability to attract Israeli economic development opportunities. The BFTDA is dedicated to fostering innovation and strengthening the commonwealth's economy, while creating and retaining good- paying jobs that require advanced skills.
For more information on the New PA Venture Capital Investment program or any of Governor Rendell's economic stimulus programs, visit http://www.newpa.com or call 1-866-GONEWPA (1-866-466-3972).
The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit his Web site at: http://www.governor.state.pa.us.
CONTACT:
Doug Rohanna 717-783-1116
Mike Chapaloney 717-783-1132 (DCED)
SOURCE Pennsylvania Office of the Governor