The partnership between Ben Franklin and Independence Health Group aims to fuel Philadelphia’s innovative digital health ecosystem and grow technology-driven, early-stage healthcare startups.
Responding to a burgeoning economic vitality in digital health, Ben Franklin and Independence Health Group each intend to pledge $2 million over a four year period to launch the funding initiative and will identify, vet, and allocate funds to augment the Philadelphia region’s continued growth and development in digital health.
Startup companies will receive funds based upon the quality of their business model, the technology’s viability, and the strength of their management team. Ben Franklin will lead the due diligence process and day-to-day fund management on potential opportunities.
Ben Franklin and Independence Health Group have demonstrated a clear commitment to healthcare innovation in the Philadelphia area, having previously announced their respective involvement in the Healthcare Innovation Collaborative, which was initiated in 2015 by the Greater Philadelphia Chamber of Commerce’s CEO Council for Growth.
A: A $6 million funding initiative over a four-year period specifically focused on growing early-stage, digital health ventures in Greater Philadelphia.
Q: How does it work?
A: Ben Franklin and Independence Health Group each intend to pledge $2 million to fund the growth of seed-stage digital health companies in Greater Philadelphia (Philadelphia, Bucks, Montgomery, Chester, and Delaware counties).
With each organization providing a pipeline for potential opportunities, Ben Franklin will be responsible for due diligence on prospective companies. Independence Health Group will have the option to participate in the funding round for all digital health companies receiving favorable review from Ben Franklin. Ben Franklin will administer the funding for all qualifying companies.
Q: Will other investors be able to participate in these rounds?
A: Yes. Like all investments administered by Ben Franklin, matching investments are required in each round. Ben Franklin will share its due diligence with qualified investors.
Q: What companies can qualify for this funding?
A: Seed and early-stage healthcare IT/digital health companies located in, or with significant business presence within, Philadelphia, Bucks, Montgomery, Chester, and Delaware Counties.
Q: What will be the size of funds committed in each company?
A: Depending on each company’s objectives and due diligence results, commitments to each company may range from $50,000 up to $1 million.
Q: Can companies receive multiple rounds of funding from this partnership?
A: Yes. Pending Ben Franklin’s due diligence, companies can pursue multiple rounds of funding, with a maximum commitment of $1 million in each company. Likewise, Independence Health Group will have the opportunity to participate in each subsequent round of investment administered by Ben Franklin.
How can companies pursue this funding opportunity?
A: Interested companies should initiate discussions with Ben Franklin.
When does this start?
A: Now. There has already been active collaboration on opportunities to deploy these funds.