Governor Wolf Announces Infusion of $5.5 Million into Venture Capital Funding to Spur the Growth of Small Businesses
Harrisburg, PA – Governor Tom Wolf today announced the reinvestment of $5.5 million from the New PA Venture Capital Investment Program into four venture capital funds to support the growth of early-stage Pennsylvania companies.
“Supporting small businesses means investing wisely in early-stage companies that just need a little bit of funding to take off,” said Governor Wolf. “Venture capital is a great way to do that. Pennsylvania has a long history of innovation, and this funding helps continue that story today. This will support our small businesses, which is vital for the health of Pennsylvania’s economy.”
Approved at today’s Commonwealth Financing Authority board meeting, the funding comes from the returns from previous investments from the New PA Venture Capital Investment Program. Venture capital funds are used to invest in early-stage small businesses that require additional funding to successfully grow. In addition to helping support small businesses and creating jobs, New PA is also a revenue generator for the commonwealth. All of its investments and assets are valued at 1.38x the amount invested since the program began in 2006.
The funding will be distributed to venture funds managed by the following:
- 1855 Capital, $1 million – located in State College, 1855 Capital focuses specifically on businesses emerging from research efforts at the Pennsylvania State University at both its main and branch campuses.
- Activate Ventures, $2.5 million – located in Bethlehem, Activate Ventures focuses on highly-experienced sales-minded entrepreneurs who can manage high-growth businesses.
- Mountain State Capital General Partners, LLC, $1 million – located in Pittsburgh, Mountain State Capital General Partners focuses on providing funding opportunities for early-stage technology companies in the Greater Appalachian region.
- NSH III GP, LP (NewSpring Health), $1 million – located in Radnor, NewSpring Health focuses specifically on growth-stage health care and health care-related companies.
Through the infusion of additional venture capital to support the growth of small business, the New PA Venture Capital Investment Program boosts Pennsylvania’s small business sector alongside other initiatives like the PA Business One-Stop Shop. The PA Business One-Stop Shop assists entrepreneurs and small business owners with planning a business, registration and permitting, hiring employees, and funding and technical assistance. The PA Business One-Stop Shop consolidates information from many agencies into one easy-to-use website. It is intended to take the guesswork out of many business operations and procedures and serves as an equalizer for any who want to start and run a business in Pennsylvania. Since its creation in February 2018, the website has assisted more than 123,000 entrepreneurs and business owners who have visited the website to learn how to start and grow a new business.
Also at today’s CFA meeting, the board approved a low-interest loan through the First Industries program which supports agriculture projects across Pennsylvania. R&F Family Farms in Northumberland County was approved for a $400,000, 15-year loan at a 3.5 percent rate through SEDA-Council of Governments. The project involves the construction of a 4,800-head hog finishing facility in Shamokin to expand the farm’s hog production capabilities.
J.J. Abbott, Governor’s Office, 717.783.1116
Michael Gerber, DCED, 717.783.1132