Pennsylvania is setting the stage for future opportunity and innovation while expanding its reputation as a leader in the life science industry, Governor Edward G. Rendell said Thursday as he announced investments in three venture capital firms that will help stimulate growth in the state's rapidly developing bio-technology sector.
"In Pennsylvania, we realize the life science industry's potential to be an engine for job creation and economic development," says Governor Rendell. "By using our resources, we are equipping local venture capital firms with the support they need to attract companies that will not only create skilled jobs and contribute to our economy, but will have the potential to develop the next big medical innovation.
"Especially during challenging economic times, it's critically important that we continue to invest in our economy to spur private sector investment and put more people to work."
The Commonwealth Financing Authority today approved $5 million in new investments to three firms through the New PA Venture Capital Investment program that provides loans to venture capital firms to invest in growth-stage companies.
These three firms are expected to leverage an additional $15 million in private investments that will be used to support more than 20 early stage Pennsylvania companies.
MentorTech Ventures, Philadelphia, in partnership with the University of Pennsylvania, received $1 million to invest in early stage companies in the technology and life science sector; NewSpring Health Capital, Radnor, received $2 million to invest in biotech, healthcare services and medical devices; and Pittsburgh Life Science Greenhouse Accelerator Fund will receive up to $2 million to invest in early stage life science companies.
New PA Venture Capital Investment program is a key component of Governor Rendell's original economic stimulus package by which the commonwealth provides loans to venture capital firms to invest in growth-stage companies.
The New PA Venture Capital Investment program was authorized to provide $60 million in loans to venture capital managers and leverage another $180 million in private equity for a total investment of $240 million in Pennsylvania's economy. To date, $48 million of the $60 million available has been committed.
Pennsylvania's venture capital investments have helped make the commonwealth third in the nation in jobs created by venture capital-backed companies, according to the National Venture Capital Association.
For more information on the New PA Venture Capital Investment program or Pennsylvania's other venture capital initiatives, visit http://www.newpa.com/ or call 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 http://www.governor.state.pa.us/.
