Where Do You Go If You Need #Startupfunding In PA?
If you are developing a new tech-product, process, or software application, that you intend to commercialize, your personal assets and credit are only going to go so far. Many of the folks we’ve worked with have taken second mortgages on their homes, maxed out their credit cards and raided their pension accounts by the time they get to us. They found out fast that it does take twice as much time and twice as much money as they originally thought.
After they burn through their own money, folks usually start looking at their friends and family. But most of us don’t have a dozen rich uncles. Plus, you’ll find that hitting up the relatives for money gets old fast and starts making holiday dinners a bit uncomfortable. You can’t say, “Pass the gravy”, followed by “Do you have any money,” and expect to be invited back on a regular basis.
So now what? A lot of people think that if they write up a credible business plan and go to the bank, they can get a loan to finish up their prototype development. But banks are lenders of other people’s savings – they don’t fund high-risk tech-startups with no cash flow and no asset base. It’s not what they are in business to do.
So, where do you find an institutional investor that specializes in risky projects? Ben Franklin Technology Partners, www.cnp.benfranklin.org is the largest seed investor in the state, and we have been investing in tech-startups and small manufacturers for more than 30 years. We use the money we get from the Commonwealth, as well as the payback from previous successful projects, to help new tech-startups either become bankable or attract follow-on Angel or VC money. That’s what we are in business to do. We invest in innovation.