Financial Services : Innovation + Job News

Days before longtime tenant BioNanomatrix announced its move to San Diego, the University City Science Center recently welcomed five new companies, and continues to be an incubator for both startups as well as international companies wishing to establish a U.S. base and national companies hoping to move into the Philadelphia market.

The new tenants include life science companies Longevity Biotech, Claremont, and Epitek, Inc.; investment firm Karlin Asset Management; and Parsortix, Inc. a French company that specializes in the transportation and medical equipment sectors.

Scott Shandler is co-founder of Longevity along with Dr. Sam Gellman of the University of Wisconsin. "Longevity develops market leading, novel therapeutics for both rare and widespread diseases," explains Shandler, who has a dual background in finance and biochemistry.

Longevity's primary product is the proprietary Hybridtide platform, developed at Gellman's academic lab in Wisconsin, enables the development of new therapies to treat a range of diseases including primary arterial hypertension, small cell lung cancer, type II diabetes and HIV, according to Shandler. Longevity currently has a contract with Fox Chase Cancer Center. "The exciting science in Dr. Gellman's labs together with the increasing lack of products within the Big Pharma pipelines led me to commercialize this line of work," says Shandler.

Claremont's sole employee is Blandine Chantepie, the U.S. director of sales and business development. Chantepie fell in love with Philadelphia in general and the University City incubator in particular, having already occupied space at SciCenter while working for Claremont parent company Ballina Capital group.

Claremont's two divisions have quite different client bases. Its medical device division manufactures a laser for dental use. "They have been selling around the world, and are strong in Europe and Korea," says Chantepie. Now the company wants to make inroads into the U.S market. Already past the hurdle of FDA approval, it's just a matter of setting up a sales and distribution network, which is already showing early success. Chantepie cites the proximity of Penn Dental School as a selling point for the company's location.

Calremont's train parts division looks to Amtrak and SEPTA for major contracts, and Chantepie says that Philadelphia's central spot along the heavily travelled Northeast Corridor is ideal. Many of Amtrak's corporate offices are right here in Philadelphia in the floors above 30th Street Station. Chantepie anticipates hiring employees within the next six to twelve months.

The remaining three companies moving into the SciCenter are early stage investor Karlin Asset Management, a Los Angeles based firm with $1 billion in equity capital; life sciences firm Epitek develops treatments for radiation exposure and methods of radiation prevention, and Parsortix is a particle separation company founded in 2006 that is developing applications for stem cells, oncology, pre-natal diagnostics and bacteria.

Source: Blandine Chantepie, Claremont; Scott Shandler, Longevity
Writer: Sue Spolan

Flying Bytes is a recurring roundup of innovation and quick updates on the people and companies we're covering:

SEPTA launches TransitView
Back in January, we reported that SEPTA was weeks away from launching a real-time, system wide tracking program. The future is finally here. Like SEPTA's TrainView for regional rail, the new TransitView provides live updates on the whereabouts of buses and trolleys throughout the city. Also launched: SMS Transit Schedule Information, allowing customers to receive a text with the next four scheduled trips, and Schedules to Go, a mobile website function that provides information on the next ten scheduled trips.

Shah closes $72 million IPO with Universal Business Payment Solutions
Following a hot tip, we learned that Bipin Shah, creator of the MAC, was seeking $72 million for payments startup Universal Business Payment Solutions. On May 13, UPBS (NASDAQ: UBPSU) got its money. According to Shah's partner Peter Davidson, "we closed on 12 million shares at $6.00 per share. The underwriters have a 45 day option to cover any over-allotments, which they have not exercised to date." Investors include hedge fund magnate J. Kyle Bass, who purchased about 800,000 shares.

Philadelphia Printworks up, running, finding its market
The lovely ladies at the helm of Philadelphia Printworks are going full speed with their new T-shirt business. Co-founder April Pugh reports that most of PPW's customer base has come from custom work, particularly from local indie rock artists. PPW loves its rockers right back and offers a band discount. Pugh says she and partner Ruth Paloma Rivera-Perez are now seeking partnerships with retail outlets and will be selling at upcoming summer festivals.

Specticast expands with EuroArts partnership
Digital entertainment distribution company Specticast continues to widen its reach. The company, which we originally profiled back in April, announced an exclusive partnership with EuroArts, bringing live and pre-recorded events from Berlin's Philharmonie, The Sheldonian Theater at Oxford University, and Madrid's Teatro Real, according to Mark Rupp, SpectiCast president.

Source: Andrew Busch, SEPTA; Peter Davidson, UBPS; April Pugh, PPW; Mark Rupp, Specticast
Writer: Sue Spolan

Wallquest has China covered. Dubai, Egypt, Saudi Arabia, and India, too. The Wayne-based wallcoverings firm was just named Small Business Exporter of the Year by the Export-Import Bank, and received an award this week in Washington, DC. Wallquest's exports rose 76 percent to more than $17 million since 2008, thanks to robust sales overseas. Jack Collins is Vice President of the family-run company, which he runs along with his brother and father, who acquired Wallquest in 1985.

While the original customer base was domestic, big box retailers and toll free sales left no one to sell to in the United States, and Collins says Wallquest had to go overseas around 2005, now selling environmentally-friendly products in more than 50 foreign markets. With a good brand name in America, the company has had great success in emerging markets in Asia and the Middle East, and the trend is toward American design.

"You wouldn't think someone in Saudi Arabia or China would want American country style, but they do," says Collins, who explains that among affluent Chinese homeowners, a big wooden kitchen table is a sign of wealth, and American design dovetails with that table.

While Wallquest is a relatively small company, says Collins, its line is more extensive than competitors', with around 35 collections coming out this year.

"Our business used to be more seasonal, and now it's not because of our international clients. When the US market is strong in winter and spring, it's Chinese New Year, and in the summer, when the US market is down, the Chinese and Middle East markets are coming up."

Collins is grateful to both Ex-Im Bank and PNC Bank for playing an essential role in the company's global growth. Wallquest wallcoverings are made with water based inks and the highest quality printing technology in the main manufacturing facility in Wayne; recently, the company acquired and retooled two other factories in New York and New Jersey, bringing the total number of employees to 150. Later this year, Wallquest plans on opening another facility in King of Prussia, hiring an additional 30 to 40 employees.

Source: Jack Collins, Wallquest
Writer: Sue Spolan

Clean technology is a big draw for potential investors. Several hundred people gathered at the Academy of Natural Sciences on March 31 for the 3rd Annual Mid-Atlantic Cleantech Investment Forum. Sponsored by Blank Rome Counselors at Law, the Academy and Cleantech Alliance Mid-Atlantic, investor panels discussing the future of renewable energy, clean water, recycling and waste disposal were followed by presentations from area entrepreneurs.

On hand were members of the Greater Philadelphia Innovation Cluster for Energy Efficient Buildings. Williams J. Agate leads the Philadelphia Industrial Development Corporation, developing and managing the Philadelphia Navy Yard, which is now in the process of creating a smart grid energy master plan.

The Fostering Cleantech Investment Panel included Kevin Brophy, of Meidlinger Partners, who talked about the future of clean water investment, and said that while innovation in the field came from the middle cap, the greatest opportunity for future investments is in the huge lower cap market. Also on the panel were Gary Golding, from Edison Ventures, who addressed rapidly improving awareness of water issues, Arun Kapoor of SJF Ventures, who mentioned 100 percent Pennsylvania wind provider Community Energy, and Josh Wolfe, the founding partner of Lux Capital. Wolfe described Lux as an early stage high risk venture fund valued at $100 million, and had a different take on the market than his fellow panelists, explaining that Lux focuses on companies that are long on human ingenuity and short on government rationality. Passing on biofuel, nuclear and natural gas investments, Lux is instead investing in nuclear waste management, calling it the energy industry's biggest unsolved problem.

The only presenting entrepreneur based in the immediate Philadelphia area is solar power conversion company Alencon Systems, Inc. Now in the research and development stage, Alencon addresses the problem of energy efficiency with large scale photovoltaic systems, which are currently created by aggregating multiple small systems. Alencon, which was borne of research at Rowan University, aims to simplify solar and wind power systems from distributed harvesting to centralized conversion. With a prototype already built and tested, Alencon slates projected sales of its streamlined systems at $45 million by 2014.

Source: 3rd Annual Mid-Atlantic Cleantech Investment Forum
Writer: Sue Spolan

Brazil's largest oil and gas company, Petrobras, is looking to make some solid Philadelphia connections. Last Thursday, Petrobras, along with a consortium of sponsors including HSBC, Select Greater Philadelphia, the US Department of Commerce and the State of Delaware, hosted lunch at Brazilian steakhouse Fogo de Chao for local leaders in finance, transportation, economic development, drilling and trade. The Delaware Valley is home to major global logistics players like BDP International, a busy international port, and headquarters to financial institutions in Philadelphia and Wilmington.

For most in Greater Philadelphia, Petrobras is not yet a household name. Listed as the largest company in Latin America by market cap and revenue, PFC Energy ranked Petrobras at the end of 2010 as the third largest energy company in the world by market value. Thursday's luncheon was also timed to highlight President Obama's upcoming state visit to Brazil.

Speakers included Maria Izabel Ramos, Investor Relations Manager for Petrobras, who provided a company overview, as well as the Honorable Branko Terzic, Executive Director of the Deloitte Center for Energy Solutions, who took the podium to provide an overall look at the future of energy consumption. Terzic, who chaired a United Nations commission on Clean Energy, said that 40-50 percent of the world still relies on wood for fuel. That statistic is changing, with increasing incomes and increasing demand. "Seven hundred million people will enter the middle class in the next decade, primarily in India and China," said Terzic. "Fossil fuel, oil and gas will be their primary energy source."

Terzic pointed out that there are hard truths where global energy needs are concerned. While the use of electric cars is on the rise, he reminded the audience that fossil fuel powers 70 percent of the electric grid. In the total electric mix, only 1.6 percent now comes from renewable, clean resources like wind and solar, and we have a long way to go. With political uncertainty in the Middle East, Terzic said we can look to Brazil's Petrobras, for the dual benefits of a diversity of supply and a stable democracy.

Attendee Paul Ellenberg, Business Development Manager for global logistics company BDP International, said he now understands that "for the world to get away from bio fuels, it will take us at least 100 years." Petrobras is newly on Ellenberg's radar, and as far as next steps, he says, "BDP Projects will reach out to become their transportation vendor for equipment from around the world to Brazil."

Source: Branko Terzic, Deloitte, Maria Izabel Ramos, Petrobras, Paul Ellenberg, BDP International
Writer: Sue Spolan

Flying Bytes is innovation nuggets from around the region:

CALLING ALL FRANCOPHILE JETSETTERS
Get your beret and cafe au lait. This summer, US Airways starts direct flights from Philadelphia to Quebec City. The daily, year round service begins June 2 and offers three nonstop round trip flights. The quick trip to the Quebec capital is under 2 hours each way.

THE LONG AND $HORT OF IT
Turner Investments of Berwyn announced the launch this week of three alternative mutual funds that employ hedge fund strategies. The Medical Sciences Long/Short, the Market Neutral and the Titan Fund all rely on diversified long and short investments. Matt Glaser, who manages the Market Neutral, says the funds seek to deliver superior risk adjustment return for clients. "Post financial crisis investors are looking for ways to mitigate risk and lower volatility, so hedge funds, and mutual fund vehicles are here to stay."

EARLY TAKEOFF
Drexel University engineering students will be working on Boeing projects, thanks to a long term agreement signed this week between CDI-Aerospace and Boeing. Through the school's co-operative education program, students will be working on structural designs, software conversions and stress analysis for the CH-47 military helicopter, the V-22 Osprey vertical takeoff and landing aircraft and the Boeing 787 commercial transport aircraft.

STEAMPUNK ACTION
The Kensington Kinetic Sculpture Derby is back for its 5th year, and organizers have put out a call for entries. Last year, participants crafted a bicycle powered steam engine, a conveyance that catapulted paint filled balloons onto a canvas, pirate ships and dragons, all foot powered. If your passion lives at the intersection of biking and art, visit the Sculpture Derby's home page for guidelines and registration forms. The event takes place May 21, and submit your entry form by April 15 to get free T-shirts for your team.

Source: USAirways; Henry Pyatt, Kensington Kinetic Sculpture Derby; Matt Glaser, Turner Investments, CDI
Writer: Sue Spolan

Flying Bytes is innovation nuggets from around Greater Philadelphia:

RIDING AROUND IN YOUR OLD BLUE JEANS:: there's been a huge increase in eco-friendly automotive offerings, all on display at the 2011 Philadelphia International Auto Show, but Ford goes one better, offering recycled denim seat cloth on some 2012 models, according to Violet Marley, who represents the car maker at the convention, which runs through Feb. 11. Also, this just in from The Automobile Dealers Association of Greater Philadelphia: 2011 show attendance jumped 28.4 percent from last year's opening weekend. That translates to 65,984 attendees in just two days, the third largest tally in the show's history.

DRIVEN TO ABSTRACTION: This is the last week you can catch Beyond Abstraction at the Center For Emerging Visual Artists at 1521 Locust Street, Philadelphia. Curated by Katrin Elia, the group show gathers the work of eight contemporary artists working in a range of media from canvas to video. While most shows begin with a subject in search of an artist, says Elia, Beyond Abstraction gathered artists first and came up with the umbrella concept later.

CAR POOL EQUITY: LLR Partners, a private equity mezzanine finance company, continues to grow, announcing four new hires this week. Jack Slye is the firm's new Vice President; Irene Lisyansky and Brian Berkin are LLR's newest Senior Associates, and Scott Williams takes the lead as Senior Analyst. LLR manages over $1.4 billion, providing interim and secondary financing to middle market companies in the 'financial, health care and business services, information technology, and education." Recently, LLR invested in Avenues: The World School, a private K-12 to open its flagship in Manhattan, with schools planned for major cities around the world.

WAKE UP AND SMELL THE EXPANSION: Pulsar Informatics, a research facility that specializes in the "assessment of cognitive performance and fatigue risk management," has outgrown its original space in the University Science Center Port Business Incubator and is moving to quarters that are triple the size on the Science Center's campus. Pulsar's fatigue assessment tools are now in use by the Department of Defense, The Federal Aviation Administration, and NASA, among others.

Source: Violet Marley, Ford; Katrin Elia, Beyond Abstraction; LLR Partners, Pulsar Informatics
Writer: Sue Spolan

Financial services developer and Main Line resident Bipin Shah has big plans for the future of the industry. Shah is raising $72 million as outlined in a preliminary prospectus filed with the Securities and Exchange Commission at the very end of 2010. Shah's Universal Business Payment Solutions Acquisitions Corporation (UBPS) of Radnor is now awaiting SEC response to the filing of a public offering of 12 million shares. The proposed blank check corporation has a stated mission, according to the prospectus, of "acquiring one or more 'platform' companies in the payment processing industry," although no specific company has been identified for takeover.

Shah, Chairman and CEO of UBPS, has been an innovator in the financial services sector. He spent his entire career in the financial transaction business. At CoreStates Financial Corporation in the 1980s, he was the architect of the Money Access Center (MAC) ATM system. Other technologies to his credit include PIN-protected point-of-sale technology, pay-at-the-pump for gas stations, and a surcharge-free ATM network.

Now, Shah and partner Peter Davidson have turned their industry experience to the acquisition and combination of three subdivisions of financial services companies: payroll processing; debit and credit card transaction processing; and prepaid plastic. According to the UBPS prospectus, while three major companies control 85 percent of the payroll market, the remainder is comprised of 1,800 small companies with an aggregate market capitalization in excess of $39 billion. Shah and Davidson "believe that these 1,800 smaller payroll companies are primed for consolidation." Next, Shah et al turn the high beam on the "approximately 1,000 different organizations that sell and service the credit and debit card needs" of merchants, of which "the smaller processors are primed for consolidation," as well. Finally, UBPS aims to capture some of the profit associated with a projected $200 billion in purchases by prepaid debit, gift, payroll and government benefit cards. Davidson, reached by phone, says, "We have quite a bit of interest from what we call the initial investors, but we cannot start to raise funds until the SEC approves UBPS." While Davidson agrees that UBPS is a speculative investment, he cites his 30 years and Shah's 40 years in the payment space.

Shah and Davidson met while both were at CoreStates; Davidson joined Shah at Genpass until its acquisition in 2005, and currently serves as Chief Financial Officer of Brooks FI Solutions, LLC, in addition to his post as Chief Administrative Officer for UPBS. EarlyBird Capital, Inc. is UBPS Acquisitions Corporation's underwriter, and is hoping to sell the anticipated 12 million share offering to raise first-stage money for this startup.

Source: Universal Business Payment Solutions Acquisitions Corp. Prospectus
Writer: Sue Spolan

Here's a surprising statistic: a family of four needs an income of over $60,000 a year to survive in the city of Philadelphia, according to United Way of Southeastern Pennsylvania. That leaves 20 percent of the city's households without adequate earnings to pay for basic necessities like food, housing, health care and child care. That's where The United Way of Southeastern Pennsylvania's Asset and Workforce Development Initiative offers a hand. United Way's goal is to educate, increase literacy, and help promote low income earners to higher paying jobs, not with handouts, but with financial self-reliance training, adult literacy programs, and assistance with tax preparation. In the past three years, United Way has provided nearly $2 million in funding and garnered over $50 million in tax refunds for local families.

In the early days of cell phones, text messages were for short, simple messages you had to deliver in an instant. Today, more people text than talk as the technology has become as ubiquitous as the phones themselves. And with a little help from Philadelphia mobile commerce company Xipwire, a text can send more than words, helping pay for meals, send gifts and even settle a restaurant check. This month, Xipwire will test these features at Old City's Zahav Restaurant and University City's Pod, changing the way you celebrate the holidays.

"All the restaurants know they have to stay ahead of the game and they just get it," says Xipwire co-founder Sibyl Lindsay. "It's so much more interactive than bringing a check to the table. When the server gets the text, they can see a profile pop up, it protects our Xipsters and our merchants, and the restaurants are really excited about it."

After premiering the technology last May at the Rittenhouse Row Spring Festival, Xipwire has been working to bring text-to-pay into restaurant locations. Xipwire creators hope new restaurant promotions will make the product more of a household name. Right now, new customers can try out the service in a restaurant setting by sending the following Twitter message "@xipwire can I have the @flyingkite XIPCODE for my free drink @StarrRestaurants Pod in University City." Creators hope this "gift" platform will change the way diners give and receive gift certificates around the holidays.

"This promotion highlights another thing that we are trying to do which is bring giftcards into the 21st century," says co-creator Sharif Alexandre. "I have giftcards in my desk right now that I haven't used because I never bring them with me. If Pod is charging me five dollars for a drink and I have a 25 dollar giftcard sitting in my account, it should know to take that first. And that is how Xipwire works."

Source: Sibyl Lindsay, Xipwire
Writer: John Steele

Any runner who has ever bought a bottled water with the fiver in their shoe can understand VitaBand, the new product from Philadelphia entrepreneurs at VitaProducts that allows athletes to carry the contents of their wallet right on their wrist. But in fact, the VitaBand started from a much scarier place.

One day in 2007, co-creator Jason Brown was on a 10k run when a car nearly clipped him, sending him diving onto the shoulder. He made it home safely but what if he hadn't? He hadn't left a note, no one knew where he was and he didn't have his wallet. How would medics locate his medical information? How would they contact his family?

"Had I been hit, I wouldn't have been found for days," Brown says. "Being the type of guy I am, I got home and started to look around for products that might be used for identification purposes for athletes and found that this might be a good business opportunity."

Company co-founder David Waxman looked beyond the bracelet, which is not unlike existing medical ID bands. Along with bringing a point-of-sale payment option to the VitaBand, allowing users to swipe their wrist to pay for that bottle of water, he began licensing the technology to manufacturers of everything runners use: cell phone cases, exercise gear and other proprietary partners. Waxman and Brown hope this bifurcated strategy will give the Vita technology life as both a product and a platform. After completing a first angel investment round last year, the company has received a second round of investment and looks to launch its pilot product, the original VitaBand, in January.

"When we came up with the concept, we wondered how to make this into a mass market product without a $200 million marketing budget," says Waxman. "We looked at the Intel Inside model or the Dolby Digital model, creating a bracelet to jumpstart the market for the licensing component of our business so we can focus on the payment and medical records and let our partners do the heavy lifting getting the products out in the marketplace."

Source: Jason Brown, VitaProducts
Writer: John Steele

The day after Thanksgiving has become as sacred to retailers as any nationally-recognized holiday. The revenue they reap can make up for an entire year of lackluster sales. With another Black Friday approaching, the Enterprise Center's Retail Resource Network (RRN) wants to ensure that Philadelphia's commercial corridors get the most they can out of this holiest of shopping days. This Wednesday (Nov. 17), RRN hosts the Visual Merchandising Workshop, an annual event to help retailers with everything from holiday window displays to store layouts, all in the name of a successful holiday season.

"This workshop touches on the psychology of the shopper," says Retail Resource Network Director Andy Toy. "How you light your storefront, the types of colors you use, the way the aisles are laid out. If done right, it will definitely increase the amount of sales a business can make per shopper and just get people in the store."

The Retail Resource Network is a division of the Enterprise Center that helps retail businesses around the city connect with the resources they need--whether it be funding, consulting or supply chain--to be successful. Toy says that simple things--not having too many stickers on your windows, creating wider aisles--can have a great impact on business. Not only do these workshops seek to help retailers but if the Enterprise Center can target the Black Friday mobs to one store, their hope is that traffic to the rest of the commercial corridor would increase, making it a Happy Holiday for the whole neighborhood.

"If we improve one storefront on a commercial corridor, we will bring more people to that area," says Toy. "That helps improve business for all the stores, makes it safer because there are more people on the street and encourages others to do likewise."

Source: Andy Toy, Retail Resource Network
Writer: John Steele

The word 'geothermal' comes from the Greek term for "heat from the earth." But digging into the earth can be a challenge when it is covered by the concrete jungle of an American city. So Nova Thermal Energy created a geothermal energy system that connects to the sewer infrastructure, using these underground pipes as a geothermal loop. After commercializing in China, Nova Thermal brings a traditionally rural technology to large, urban buildings here in the U.S., and they are starting with the Philadelphia Water Department.

Earlier this month, Mayor Michael Nutter and the City of Philadelphia announced the Greenworks Pilot Energy Technology program that would allow three developing energy technology companies to install at buildings around the city to test the feasibility of different energy-saving measures. Nova Thermal Energy received $150,000 to bring urban geothermal to the Philadelphia Water Department headquarters at 1101 Market St. With this installation, Nova Thermal will monitor consumption, effectiveness and filtration to see if these technologies can be used city-wide to curb heating costs and reduce Philadelphia's carbon footprint.

"We have a project pipeline of about 15 projects in various stages of development throughout the Mid-Atlantic region but no one wants to be the first to demonstrate the technology," says Nova Thermal CEO Elinor Haider. "This will enable us to advance our commercial scale pipeline."

The Philadelphia Water Department has needed a new heating system for some time. This system provides a large-scale system that uses the heat from untreated sewage to heat large buildings, using filtration and a system of heat pumps. Nova Thermal Energy estimates that the 20,000 sq ft. PWD facility will save approximately 40 percent of the building's current heating costs when it is completed in January.

"By using wastewater for our heat pumps, the system is a fraction of the cost but a massive energy efficiency impact on buildings that couldn't use geothermal before," says Haider.

Source: Elinor Haider, Nova Thermal Energy
Writer: John Steele

It isn't very often that you get the best of both worlds, especially in the world of technology mergers and acquisitions. Mark Zuckerberg isn't the only one to lose a couple close friends along the way. But to hear the heads of Berwyn cloud computing firm Boomi tell it, it is possible to get acquired without selling out.

Founded 10 years ago, Boomi created a niche connecting all disparate online applications together in a cloud. Say you have taken on a new client and you want to add them to your finance records. Boomi helps you automatically add the information, without having to create a separate file in a separate program. After raising $4 million to date, worldwide computer manufacturer Dell, which was interested in creating a line of office services, took notice. The deal Dell struck two weeks ago to acquire Boomi will let its newly acquired firm keep all employees and continue all client relationships.

"They kept the team in tact, I still run the team," says former Boomi President and CEO Bob Moul. "I just have a boss for the first time in five years."

After shelling out $3.9 billion acquiring Perot Systems a little over a year ago, Dell created Dell Services, a cost-saving, business solutions arm of the business. With the acquisition of Boomi, Dell hopes to create a full service office suite so that all facets of a business can run through Dell products. For Boomi, the company cloud kings are still innovating, using the Dell name to explore partnerships with new application developers and take on projects that come their way.

"Dell wants us to continue to offer the best cloud integration platform in the world but now we also have the backing of a major, global brand that gives everybody more comfort in adopting Boomi technology," says Moul. "In the first week, I have had at least a half dozen new opportunities that we are very excited about and probably wouldn't have known about otherwise."

Source: Bob Moul, Dell Boomi
Writer: John Steele

When the state Department of Community and Economic Development announced this week that Philadelphia would receive $785,000 in grant funding for commercialization projects, local development officials had to feel flattered. After all, very few of DCED's grant programs are this competitive and when all was said and done, Philadelphia programs took nearly half the funding, including the only two universities included in the funding round.

Drexel University's Health Innovation Partnership of Southeastern Pennsylvania ($100,000) is a research-in-action program creating products from transitional life sciences research and Temple University's Pennsylvania Environmental Technologies for Pharmaceutical Industry ($600,000) will develop energy-efficient technologies for waste management in the pharmaceutical industry. But the scrappiest competitor may have been the University City Keystone Innovation Zone. After their first proposal was duplicated by another KIZ, officials submitted a new proposal for a suite of programs to help would-be business owners through the commercialization process.

"We are going to re-scope the grant to include workshops on how to pitch to funders, grant writing advice, that kind of thing," says Jeanne Mell of the University City Science Center. She and Science Center colleague Kristen Fitch worked on the proposals, which earned $85,000 from the DCED. "Beyond that, we are looking to continue the great programming we have offered for the last five years."

But the most important thing the UC KIZ hopes to offer is funding. Through a new micro-grant program, UC KIZ hopes to redistribute this funding award to back worthy business plans, getting some products and business concepts to the marketplace sooner rather than later.

"We will continue to offer a steady stream of networking, professional development and entrepreneurial support programs in Philly," says Mell. "What the micro-grant project will allow us to do is add funding as well to get these companies moving."

Source: Jeanne Mell, University City Science Center
Writer: John Steele