Shapiro Administration Investing $1.5 Million Investment in Innovative, Early-Stage Tech Companies

Governor Josh Shapiro and his Administration are focused on making the Commonwealth a national leader in job creation and economic development.

Harrisburg, PA - Today, Department of Community and Economic Development (DCED) Secretary Rick Siger announced that $1.5 million was awarded through the Ben Franklin Technology Development Authority (BFTDA) to two venture capital firms that will make investments in Pennsylvania-based early-stage technology companies.

These awards through the BFTDA will help advance the competitiveness of Pennsylvania's companies and universities in the global economy. Since January 2023, Governor Shapiro has announced more than $3 billion in new private sector investment in Pennsylvania as a direct result of his Administration's work.

"Our investments in high-growth, innovative industries and firms are helping position Pennsylvania to be an economic powerhouse," said Secretary Siger. "Venture capital firms that finance start-up companies in the Commonwealth create opportunities for growth, innovation, and jobs in our communities. DCED is proud to continue our work with BFTDA to make this happen."

The BFTDA approved the following:

• $1 million on behalf of The Keystone Innovation Fund II, LP. The fund is being established via the merger of White Rose Ventures (York, PA) and 1855 Capital (State College, PA). The fund strategy focuses on making early-stage investments in companies having high growth potential, with a primary focus on businesses in central PA.
• $500,000 on behalf of Rittenhouse Ventures III. The fund was established to invest in companies that are engaged in Technology Enabled Services with special emphasis on Healthcare and Pharmaceutical technology companies. Additional focus will be in financial services, human resources as well as enterprise software companies that operate under SaaS (Software-as-a-Service) models.

Both awards were made possible through BFTDA's Venture Investment Program.

Since day one, Governor Shapiro and his Administration have worked aggressively to make Pennsylvania a leader in economic development, innovation and to help businesses grow here in the Commonwealth. To help Pennsylvania compete, Governor Shapiro created the first Economic Development Strategy in almost 20 years - and his budget called for significant investments directly tied back to this ten-year strategy.

The bipartisan 2024-25 budget delivers on key elements of this strategy and spurs job creation, fosters innovation, and provides the funding to make Pennsylvania more competitive on a national scale with new and expanded investments, including:

• $500 million in site development, including $400 million to create the Pennsylvania Strategic Investments to Enhance Sites (PA SITES) program to bring more commercial and industrial sites to Pennsylvania. PA SITES received bipartisan support in the House and Senate to help sites across the Commonwealth become "shovel ready" in order to attract more businesses and good-paying jobs.
• $20 million for the Main Street Matters program, to support small businesses and commercial corridors that are the backbone of communities across our Commonwealth. This new program will build upon and modernize the Keystone Communities program.
• Building on the first-time state funding for the Historically Disadvantaged Business Program in the 2023-24 budget, this budget invests $20 million in state funding for small minority-owned businesses across the Commonwealth.
• $15 million for tourism marketing to boost our economy, attract more visitors, and support good-paying jobs - building on the Governor's launch of the Great American Getaway brand to encourage tens of millions within a few hours' drive to visit Pennsylvania.
• The budget also continues to cut taxes for Pennsylvanians and provides tax credits to support further job creation and investment.

As one of the oldest and most emulated state technology development programs in the nation, the BFTDA was established to promote an entrepreneurial business environment, advance technology innovation, and create a technology-ready workforce.

For more information about the BFTDA or the Department of Community and Economic Development, visit the DCED website, and be sure to stay up-to-date with all of our agency news on Facebook, X, and LinkedIn.

MEDIA CONTACT:
Governor's Office, [email protected], 717.783.1116
Penny Ickes, DCED, [email protected]