PENNSYLVANIA OFFICE OF THE GOVERNOR; Pennsylvania Governor Rendell Announces Venture Capital Partnerships in Emerging Technology, Life Science Compani

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.

Keywords: Pennsylvania Office of the Governor.

This article was prepared by Lab Business Week editors from staff and other reports. Copyright 2007, Lab Business Week via NewsRx.com.