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PHILADELPHIA, PA: At the core of any startup company is the seed of an idea. But having a great idea for a new technology is no guarantee of commercial success—and neither is funding, as the failed businesses that line the entrepreneurial highway can testify.
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| Having a great idea for a new technology is no guarantee of commercial success. That's why Ben Franklin Technology Partners offers business development assistance far beyond the funding they also provide. As Ben Franklin himself said, "An investment in knowledge always pays the best interest." |
That's why many of the companies funded by Ben Franklin Technology Partners (BFTP) receive more than financial support from the organization. "We do all we can to move companies along the growth continuum," says Mark deGrandpre, director of investments for physical sciences at BFTP. "We provide business support for everything from building a management team to improving accounting processes."
Operating Lean When You're Still Green
Lean operations are synonymous with startups, because there's little money for a large staff or job differentiation. "One person usually does two or three jobs," deGrandpre says. "But as the company grows, that person can no longer take on the complexities and time burden of multiple jobs."
To accommodate growth and prevent personnel burnout, the company needs additional financial support and process improvement to keep up with increasing demands. "As companies undergo these growing pains, they need some help from Ben Franklin," says deGrandpre.
Support When They Needed It Most
Christini All Wheel Drive Motorcycles needed to improve their bookkeeping, so they could accurately monitor their business and present to investors financial reports compliant with generally accepted accounting principles. BFTP networked Christini with Robert Small, an accounting company that had successfully worked with other companies in the BFTP portfolio.
"At this point in Christini's development, Robert Small was the exact resource they needed," deGrandpre says. "This is a good example of where we provide that added value—by brokering these kinds of connections."
Nomadio is a manufacturer of state-of-the-art control and telemetry systems used in small unmanned ground and air vehicles and robots for both the military and hobbyist markets. Upon funding, BFTP identified the company's need for help with its bookkeeping and accounting functions, particularly important for a company facing complicated federal grant reporting requirements. BFTP offered to help fund a part-time person to get the company's books organized.
"The portfolio manager we had assigned to assist Nomadio recommended someone who had previously worked for another company in his portfolio. We thought it would be a great fit for the company," deGrandpre says. That manager, Kathy Rue, worked out so well that she was eventually hired by Nomadio to be their full-time CFO.
The Importance of Networking
Issues within a portfolio company are sometimes brought to BFTP's attention by the client company itself, and sometimes it's Ben Franklin who notices a potential gap.
"The Ben Franklin folks aren't shy about pointing out issues," says deGrandpre, "whether it's an accounting gap or a chief technology officer gap." But he points out that there's a fine line between seeing a gap and getting in the way of a management team trying to execute its plan. To walk this line appropriately, BFTP stays in constant contact, sending an adviser to all formal board meetings.
"I see BFTP as a bee that helps to cross-pollinate between enterprises that don't normally get to see each other because they are too small or too busy," deGrandpre says. "We really leverage our networks to help our portfolio companies, and they recognize and appreciate this added value." |
