Jun 26, 2007
HARRISBURG – To help new and emerging companies find the capital they need to open and grow, Governor Edward G. Rendell today announced Pennsylvania’s guarantee of more than $182 million to venture capital firms.
The money, which will be made available through the New Pennsylvania Venture Guarantee Program, a vital piece of the Governor’s economic stimulus package, will increase the amount of equity financing available to businesses throughout the commonwealth.
“One of the most important resources that we can provide for our new and emerging companies is working capital,” said Governor Rendell. “In today’s competitive business environment, much of that capital is in the form of private equity or venture capital. We created this program to increase the flow of that capital into the commonwealth so we can help create new companies, develop our expanding businesses and bring new jobs to Pennsylvania.”
The New Pennsylvania Venture Guarantee Program will allow the commonwealth to more actively partner with the venture capital community by guaranteeing the combined performance of each qualifying venture capital firm’s Pennsylvania portfolio investments up to a maximum of $250 million. In return, these investment guarantees will provide an additional $250 million in investments, leveraging a total pool of $500 million in new capital available for Pennsylvania growth-stage companies.
The following guarantees were approved by the Commonwealth Financing Authority:
Allegheny County
The commonwealth will guarantee Chrysalis Ventures III LLC up to $20 million for Chrysalis Ventures III LP. The Louisville-based fund will open an office in Pittsburgh and invest in early-stage companies focusing on healthcare, media, communication and business service investments in the Midwest and southern United States.
Through the CFA, Pennsylvania will guarantee Constellation Ventures Management LP up to $15 million for Constellation Ventures III LP. The New York-based fund will also open an office in Pittsburgh and invest in early- through late-stage media, communication and technology companies.
Northampton County
Pennsylvania will guarantee up to $37.5 million for Mid-Atlantic Venture Fund V, GP Inc. The fund will invest in a broad range of industries with a focus on companies specializing in information technology, communications, electronic components, business services and healthcare services.
Through the CFA, the state will guarantee up to $10 million for New Atlantic Venture Fund III LLC. The Massachusetts- and Virginia-based fund will open an office in the Easton area and invest in early-stage technology companies.
Philadelphia County
The commonwealth will guarantee Element Partners LLC up to $25 million through CFA to invest in both growth equity and late stage “clean technology” companies.
Chester County
The commonwealth will guarantee up to $37.5 million for Edison Partners VI LLC’s Edison Venture Fund VI LP. The fund will invest in technology-focused business service companies in the Mid-Atlantic region.
Montgomery County
The commonwealth will guarantee up to $37.5 million for NewSpring Capital LLC. Investing in growth stage companies, the fund will focus on business services, enabling technology and information technology companies located in the Mid-Atlantic region.
For more information on the New PA Venture Guarantee Program and other economic stimulus package programs, visit www.newPA.com or call 1-866-GoNewPA (1-866-466-3972).
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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 his Web site at: www.governor.state.pa.us.
