The Commonwealth Financing Authority (CFA) approved a $1.5 million investment in NextStage Capital II LP (NextStage II), a $25 million fund based in Greater Philadelphia. NextStage II, which has an extensive portfolio of companies in the region including TicketLeap.com, Agilence, Vizinex and others, will make 15 to 21 investments with an average target of $500,000 to $2 million per investment. Through this relationship, the CFA investment will result in an additional $15 million of private venture capital investments for Pennsylvania companies.
The CFA, through the New Pennsylvania Venture Capital Investment Program, has approved $5.5 million investment to help two early-stage companies grow and create jobs in Pennsylvania.
“Governor Corbett is committed to providing entrepreneurs and new companies with the start-up capital needed to grow their businesses and produce jobs,” said Department of Community and Economic Development Secretary C. Alan Walker. “These investments will provide early-stage technology companies with the venture capital and equity financing they need to jump-start their businesses and create new jobs.”
The New PA Venture Capital Investment Program generates significant private equity investment by requiring the venture capital firm to provide a match of three dollars into Pennsylvania companies for every one dollar in state funding. With this investment, the CFA has now committed $50.4 million of the $60 million available to venture capital partnerships for investment in Pennsylvania-based technology-oriented entities.
Based in Audubon, Montgomery County, NextStage II is an early-stage venture capital fund being organized with the objective of investing entirely in seed and early-stage software and technology-enabled services (software as a service) stage companies. The fund will focus on investments in the state’s northern and central regions, and in Philadelphia.
The New PA Venture Capital Investment Program is a catalyst to increase the availability of venture capital investment in Pennsylvania early stage and “seed” companies. The program is administered by the Department of Community and Economic Development, under the direction of the CFA.