Entrepreneurial Efforts Boosted by NEPA Venture Partnership in Early November.
(Hazleton, PA –September 29, 2009) – CAN DO, Inc. and its counterparts in Wilkes-Barre and Scranton are trying to aggressively promote entrepreneurship throughout Northeastern Pennsylvania through the formation of the NEPA Venture Partnership. The NEPA Venture Partnership is a regional economic development model which brings together all of the various support mechanisms and resources to foster the creation of an entrepreneurial culture in Northeastern Pennsylvania.
“In a down economy, a lot of smart people tend to be looking for work. Sometimes these folks invent things, own patents, and want to start their own companies, and unemployment provides the motivation to take that next step in starting a business. NEPA Venture Partnership represents a regional initiative to expand our existing business incubators by adding venture capital and technical assistance to budding entrepreneurs”, according to Christina Hitchcock, Business Development Administrator at The Scranton Industrial Development Corporation.
On November 4th and 5th, there will be two major events promoting entrepreneurship in Northeastern Pennsylvania. On Wednesday, November 4th, the Mid-Atlantic Angel Group (“MAG”), an early stage investment fund in which all three local economic development organizations invest in, will host its monthly meeting at the Hilton in downtown Scranton, PA. Companies who have submitted to MAG for investment and have passed the screening test, will be presenting to the MAG group requesting early stage investment equity capital. NEPA Venture Partnership is encouraging accredited investors throughout the region (minimum investment of $50,000 and minimum net worth requirements) to attend and gain an understanding of how the fund operates, how early stage investment helps entrepreneurs move from concept to commercialization, and understand the potential return on investment for investors. Interested investors should contact Bernie DeBias at 570-455-1508 if they would like to attend. Seating will be limited.
On November 5th, Ben Franklin Technology Partners will host “Ben Franklin Venture Idol” at the downtown Scranton Hilton. Venture Idol will be a day long event illustrating significant ways in which early-stage entrepreneurs seek and obtain seed capital from venture capitalists. It will include a venture capital version of speed dating, American Idol, and insights from the region’s most successful entrepreneurs. Ben Franklin Venture Idol will be held at the Hilton Scranton and Conference Center, 100 Adams Avenue on Thursday, November 5th, starting at 10:00 a.m. The winners of Venture Idol will receive prizes of small cash investments in their companies. Follow the attached link for additional information. (http://nep.benfranklin.org/bftp-news/ben-franklin-venture-idol-scranton)
“All three economic development organizations, Ben Franklin, our incubator network, serial entrepreneurs and private investors are all collaborating on the focus of encouraging entrepreneurship in Northeastern Pennsylvania, said John Augustine III, Senior Director of Economic and Entrepreneurial Development for the Greater Wilkes Barre Chamber of Business and Industry. According to CAN DO, Inc.’s Director of Economic Development, Bernie DeBias, timing couldn’t be better. “According to a study completed by Global Insight in 2007, Venture Capital backed companies created over 10.4 million jobs during 2006 and associated company revenues of $2.3 trillion.” “Investment Capital is as important to entrepreneurs in the early stage and growth stages as real estate has historically been to manufacturing economies. Entrepreneurial development is another economic development tool not only to create jobs, but to create wealth for the regional economy”. When people are unemployed, they build their own futures and create their own companies to survive.
NEPA Venture Partnership
SLIBCO, Wilkes-Barre Chamber and Hazleton CANDO
Invest In the Future of NEPA
The Scranton Lackawanna Industrial Building Company, Greater Wilkes-Barre Chamber of Business and Industry and Greater Hazleton CANDO today announce the formation of the NEPA Venture Partnership, a collaboration that will serve as a catalyst to increase the success level of entrepreneurship in northeastern Pennsylvania. The mission of the Partnership is to foster a regional culture of entrepreneurship by providing access to a $10 million venture capital fund, peer support and access to business services.
The announcement was made at The Greater Scranton Chamber of Commerce in Scranton and was attended by Secretary George Cornelius from the Pennsylvania Department of Community and Economic Development, Congressman Paul Kanjorski, Austin Burke, Vice President of Scranton Lackawanna Industrial Building Company (SLIBCO), Todd Vonderheid, President of the Wilkes-Barre Chamber of Business and Industry and Kevin O’Donnell, President of CANDO.
“This Partnership is a commitment on our part to nurture our entrepreneurial firms, provide investment capital, networking opportunities and venture capital experience,” noted Austin Burke. “We will be developing an entrepreneurial culture, expertise and infrastructure for new business ventures.”
Kevin O’Donnell noted the proactive nature of the partnership. “This brings together three economic development groups in a way that promotes innovation in our own backyard,” said O’Donnell. “We will invest in and develop companies today that will bring new ideas and new jobs to our area now and in the future.”
The NEPA Venture Partnership invested in the MAG II Fund, a fund of $10 million that will be invested in technology based and life sciences businesses in the region. Other investors include the Ben Franklin Development Authority, the Commonwealth of Pennsylvania and individual investors. This Partnership goes beyond a financial commitment. Through the fund, area entrepreneurs will have access to VC funding, technical assistance, pre-venture capital “scrub” sessions, industry mentor and other resources.
“The 1999 Battelle Study encouraged us to promote the development of an entrepreneurial culture in Northeast PA,” stated Todd Vonderheid, “and that translated into the creation of the Northeast PA Technology Institute and Great Valley Technology Alliance, as well as several business incubator centers. Today, the NEPA Venture Partnership is the next step in supporting the growth of entrepreneurs in NEPA. The synergy of our investment and resources will have a tremendous impact on the future of our area.”
Through MAG II (Mid-Atlantic Angel Group) investors will review requests submitted by entrepreneurs in a “scrub session” examining the business model, strategic plans and scalability of the company. This due diligence will be followed by a voting process to select the best proposals with investments from the fund averaging $250,000. The NEPA Venture Partnership expects to invest in twelve companies through this process. The fund is expected to close in the second quarter of 2009 with a maximum of forty investors. These will include economic development organizations, angel investors and CEO’s. The first round of funding is expected to take place in the third quarter of 2009. The fund will be professionally managed by Christopher Starr, Founder & Executive Director of the Mid-Atlantic Angel Group Funds in Philadelphia.
Additional NEPA Venture Partnership plans include a state-wide venture capital fair on November 5, 2009 at the Hilton Scranton and Conference Center. Future venture capital development and networking events are also being planned on a regional level.