NEPA Venture Partnership Invests In the Future of NEPA

The Scranton Lackawanna Industrial Building Company, Greater Wilkes-Barre Chamber of Business and Industry and CAN DO, Inc. of Hazleton, announced 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 venture capital fund up to $10 million, peer support and access to business services.

“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, Vice President of Scranton Lackawanna Industrial Building Company (SLIBCO). “We will be developing an entrepreneurial culture, expertise and infrastructure for new business ventures.”

Kevin O’Donnell, President of CAN DO, 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 up to $10 million that will be invested in technology based and life sciences businesses in the region. Other investors include the Ben Franklin Technology 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, President of the Wilkes-Barre Chamber of Business and Industry, “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 99 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.

“I applaud the NEPA Venture Partnership and the groups involved in this project,” said Congressman Kanjorski. “I have long tried to bring a small venture capital group to Northeastern Pennsylvania to help local businesses. Too often only companies located in large cities have access to venture capital funding.  But today, we are changing that model. The NEPA Venture Partnership will foster entrepreneurship locally and help support area businesses, which are especially important as we work to overcome the current economic problems.”

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.

For more information on the NEPA Venture Partnership, visit www.NEPAVenturePartnership.com or contact the Partnership at (570) 342-7711 or info@NEPAVenturePartnership.com.