BUILDING PA’S TECHNOLOGY ECONOMY
BEN FRANKLIN TECHNOLOGY PARTNERS PRESENTS
THE PENNSYLVANIA TECHNOLOGY SHOWCASE ON JUNE 7TH
HARRISBURG - June 7, 2005 - The Ben Franklin Technology Partners (BFTP) presented the Pennsylvania Technology Showcase at the Capitol Rotunda today, June 7th, to highlight the successes of representative Ben Franklin portfolio companies. BFTP is a program of the Pennsylvania Department of Community and Economic Development and is governed by the Ben Franklin Technology Development Authority. BFTP has four regional headquarters positioned strategically throughout Pennsylvania in the Lehigh Valley, Philadelphia, Pittsburgh and State College.
CEOs and executives from eight Ben Franklin-funded companies came to demonstrate and exhibit their products, technology, and innovation. Clients industries spanned the fields of bio/life sciences, information technology, advanced manufacturing, and other areas.
The Ben Franklin Technology Partners program statewide boosted Pennsylvania’s economy by $8 billion in the 12-year period between 1989 and 2001, according to an independent economic impact study conducted in 2003 by Nexus Associates. Nexus Associates is a Boston-based economics and management-consulting firm.
Significant findings of the study include:
- Ben Franklin generated 93,105 job-years at a cost to the Commonwealth of $3,342 per job-year. Job years are defined as the number of jobs created that last a full year or more multiplied by the number of years they have existed to date.
- Every public dollar invested in Ben Franklin yielded nearly $23 of additional state income
- The state garnered more than $400 million in additional tax revenue as a direct result of the program, which exceeded the program’s operating costs over the same period.
Ben Franklin client companies that presented at the Technology Showcase were:
- B. Foster & Co., Inc.
Waynesboro
Product/Service: B. Foster & Co. has created a low-cost rescue unit, which contains lighting, power, rescue tools, and air bags in a light, compact trailer.
Ben Franklin investment 2003-2004: $300,000
Ben Franklin project: BFTP’s investment was used to enhance the design of the rescue unit, and to launch the product at trade shows and through print and web-site advertising. Ben Franklin’s integrated approach to nurturing a new business helped the company’s product become recognized as the “gold standard” in rescue equipment.
Success: In the first quarter of 2004, over twenty customers applied to FEMA for funding to purchase the unit, and it has been featured in national publications such as FIREHOUSE and Fire Chief Magazine.
- Gentis, Inc.
Philadelphia
Product/Service: Gentis is developing breakthrough technologies for orthopaedic treatments in the form of synthetic products for treating degenerated intervertebral discs of the spine and other musculoskeletal lesions.
Ben Franklin investment: 2002-2003 $500,000
Ben Franklin project:Ben Franklin’s funding supported pre-clinical work in preparation for Phase I clinical trials of a bioactive cartilage regeneration template. Gentis’ product, PoroCell, is a biomaterial tissue scaffold used to treat and repair cartilage defects in joints. Hand woven bioactive glass fibers are combined with resorbable polymer materials to form a 2-D template that promotes cell growth, expansion and differentiation.
Success: Gentis has recently produced the first batch of DiscCell™, a proprietary injectable viso-elastic memory polymer emulsion, designed to restore the normal biomechanical function of a degenerated intervertebral disc, and is about to begin in vivo implantations.
- Innovative Control Systems, Inc.
Nazareth
Product/Service: Innovative Control Systems (ICS) has created a product which applies sophisticated computer technology to the car wash and quick lube business.
Ben Franklin investment: 1989, 1995, 1996 $236,120
Ben Franklin project: ICS produces software and hardware that enables automotive service owners and managers to increase profitability, improve customer service and satisfaction. These systems handle all aspects of the business; point of sale, cash control, labor staffing, sales analysis, chemical and utility management, equipment control, and customer loyalty programs.
Success: The company developed from a concept and two people to a dominant market player that now employs 49
- Omega Tools, Inc.
Portland
Product/Service: Omega Tools produces equipment, specialty tools, training, consulting, and contract services that allow utility companies to locate and repair pipe leaks through an 18-inch vertical tunnel rather than a 4-foot by 4-foot, or even larger, trench. This “laparoscopic” style technology contrasts sharply against the conventional 4-foot by 4-foot trench that is currently used to work on subsurface infrastructure.
Ben Franklin investment: 1999 - 2001 $350,000
Ben Franklin project: Seed funding and marketing strategy assistance provided by Ben Franklin was essential in Omega’s product development and subsequent product line expansion. By using Omega’s full complement of small-hole technology products and services, underground utility companies frequently save between 30 and 50 percent of the cost of performing the same job using conventional methods.
Success: Omega Tools’ products are now used nationally and internationally, with clients including Keyspan Gas, PECO Philadelphia, San Diego Gas, WE Energy, UGI, MichCon, South Jersey Gas, TXU in Dallas, Centerpoint Energy in Houston, Atlanta Gas, and the Enbridge organization in Toronto, and many others. As a result of their work with Ben Franklin, Omega retained 48 jobs and created 7 new jobs. Sales continue to increase.
- Plextronics
Harmarville
Product/Service: Using technology developed at Carnegie Mellon University, Plextronics has created a new generation of advanced materials that combine the functional benefits of electrical conductivity with the design, processing, weight, and cost advantage of plastics.
Using technology developed at Carnegie Mellon University, Plextronics has created a new generation of advanced materials that combine the functional benefits of electrical conductivity with the design, processing, weight, and cost advantage of plastics.
Ben Franklin investment: 2002-2005 $1,100,000
Ben Franklin project: Ben Franklin’s initial investment provided risk capital for Plextronics’ prototype development, management team recruitment and patent processing. Subsequent investments helped the company refine their product and hone their marketing plan. IW has also provided assistance in developing a funding strategy and financial partnerships that have helped Plextronics raise their first institutional round of investment.
Success: Since its founding in July 2002, Plextronics has conquered many milestones such as: creating and commercially selling Plexcore technology to the plastic electronics industry; developing partnerships with leading companies like Elo Touchsystems (a Tyco subsidiary) and leading companies in the flat panel display market; being named to “Innovation World 21” (the only Pennsylvania company named as a top 21 company that is poised for growth in the 21st century); hiring leaders from PPG, McKinsey, 3M and WR Grace; and raising $4.6 million in financing.
- RedZone Robotics
Homestead
Product/Service: RedZone Robotics develops, manufactures and deploys robotic and remotely-controlled mobile equipment that clean, inspect and rehabilitate pipes and tanks for the water and wastewater industries. RedZone Robotics develops, manufactures and deploys robotic and remotely-controlled mobile equipment that clean, inspect and rehabilitate pipes and tanks for the water and wastewater industries.
Ben Franklin investment: 2004 $400,000
Ben Franklin project: Ben Franklin’s first $100,000 investment helped RedZone Robotics build their first prototype product and test it in the marketplace. IW was instrumental in helping develop the product development roadmap toward full-scale commercialization and helping secure additional investment in the company. Subsequent investments and on-going business assistance have helped RedZone refine their products, hire management talent, and define their marketing strategy.
Success: In the past year, Redzone has launched its “Responder” robotic service to provide essential information and rehabilitation services to municipalities. The company finished a 10-month project with Allegheny County Sanitary Authority (ALCOSAN), closed on a $2.3 million round of financing,
and hired new additions to the management team including a world-class mobile robotics expert as Chief Technical Officer and recruited a software expert from Carnegie Mellon University.
- Spinworks, LLC
Erie
Product/Service: Spinworks has created the SpyroCor, which is a silicon-carbide insert
used in industrial gas furnaces, improving heat transfer and saving10-20% on fuel consumption.
Ben Franklin investment: 2002-2004 $400,000
Ben Franklin project: Ben Franklin’s funding is being used to drive sales and marketing activities. Ben Franklin’s Transformation Business Services Network has guided the company in areas such as financial management, business strategy, human resource planning, and marketing research. Their input has been critical to the company’s growth, as the company’s resources cannot support outside consultants at this time.
Success: Spinworks, which currently employs ten people, recently received a $100,000 SBIR Grant and is a finalist for an I & I Dept. of Energy Grant.
- Xcelis Communications, LLC
Wayne
Product/Service: Xcelis Communications is developing and licensing innovative products and integrated wireless solutions for the Connected Home. Xcelis’ Unum™ Architecture, a cost-effective worldwide compliant communications system, is capable of integrating voice, data, IP, fax, wireless and video on a single platform.
Ben Franklin investment: 2003 $100,000
Ben Franklin project: Ben Franklin’s funding supported Xcelis’ finalization of all software and hardware design for production and the manufacture of 50 units for business development; the launch of the company’s multifaceted brand awareness and marketing and communications campaign targeting potential third party licensing partners, and the establishment of their southeastern Pennsylvania operations.
Success: Ben Franklin's initial $100,000 investment has helped Xcelis leverage $421,500 in follow on financing.
The Ben Franklin Technology Partners presents the Pennsylvania Technology Showcase periodically to educate the public on the impact of the program and to recognize its clients. All presenting companies have had measurable success after BFTPs investments and represent the many companies that have benefited from Ben Franklin’s work.
The Ben Franklin Technology Partners link companies with experts, universities, funding, and other resources to help them prosper through innovation. The program’s strategy encompasses three key areas: developing early-stage, technology-oriented companies; helping established manufacturers creatively apply new technologies and business practices; and promoting an innovative community-wide infrastructure that fosters a favorable business environment for high-growth companies. The BFTP program has been recognized internationally as a model for innovation in technology-based economic development.
# # #
CONTACT:
Terry Singer
Ben Franklin Technology Partners
Director, Statewide Affairs
Phone: (717) 856-0138
Email: tsinger@benfranklin.org
|
