Investment Thesis and Strategic Focus
The GO PA Fund is a growth-stage venture capital fund dedicated to providing follow-on capital to technology-focused companies within Pennsylvania. The fund capitalizes on the extensive due diligence and portfolio management experience of Ben Franklin Technology Partners, positioning itself uniquely in the venture capital landscape.
Core Investment Thesis
At the heart of the GO PA Fund's investment thesis is a focus on growth-stage tech companies. By targeting ventures previously supported by Ben Franklin entities, the fund mitigates risk and enhances the potential for rapid scaling. The fund's strategy involves making follow-on investments in firms that have demonstrated traction and are poised for significant growth. This approach leverages the rigorous vetting process of Ben Franklin, ensuring access to qualified opportunities.
Strategic Focus Areas
The fund's strategic focus is on retaining high-growth startups within Pennsylvania, thereby strengthening the local innovation economy. Investments range from $1 million to $5 million per company, with a target fund size of $40 million by early 2024. The fund's emphasis on collaboration across the four Ben Franklin Technology Partners organizations statewide ensures a cohesive approach to economic development and talent retention.
Alignment with Market Trends
The GO PA Fund's strategy aligns with current market trends that prioritize regional economic development and technology-driven growth. By focusing on companies at an inflection point, the fund taps into the increasing demand for scalable tech solutions. This approach not only supports local economic growth but also positions the fund to capitalize on future growth opportunities in the tech sector.
Differentiation in the VC Landscape
What sets the GO PA Fund apart is its risk-mitigated investment strategy, leveraging Ben Franklin's existing portfolio and network. This unique positioning provides a competitive edge, reducing diligence costs while ensuring access to vetted, high-potential companies. The fund's commitment to retaining startups within Pennsylvania further differentiates it by addressing a critical gap in late-stage funding.
Portfolio Composition and Sector Expertise
The GO PA Fund is a growth-stage venture fund, strategically focused on technology-based ventures within Pennsylvania. Managed by Ben Franklin Technology Partners in collaboration with statewide entities, the fund aims to invigorate technology sectors through targeted investments. This fund distinguishes itself through its sector expertise and strategic investment approach. ## Key Sectors and Industries The GO PA Fund primarily invests in technology-driven sectors. As of March 2024, the fund has made notable investments in the **data activation and identity platform** sector, as well as in **financial technology**. This demonstrates a commitment to sectors poised for substantial growth and innovation. ### Portfolio Company Examples 1. **Audigent**: As a leading data activation, curation, and identity platform, Audigent specializes in privacy-safe, first-party data solutions for media monetization. This investment underscores the fund's interest in data-driven technologies. 2. **LoanStar Technologies LLC**: This company provides embedded lending services through its MerchantLinQ platform, facilitating instant point-of-sale finance solutions. This investment highlights the fund's focus on fintech innovations that streamline business banking processes. ### Sector Expertise The GO PA Fund's investment strategy revolves around leveraging the vast network of over 600 companies within the Ben Franklin Technology Partners portfolio. The fund operates as a **follow-on investor**, focusing on companies that have demonstrated commercial traction and received previous funding within the network. The fund is structured to make **growth-stage investments** ranging from $1 million to $5 million per company. With a geographical focus exclusively on Pennsylvania-based companies, the fund capitalizes on regional innovation hubs managed by Ben Franklin and Innovation Works. While the GO PA Fund focuses on technology investments, its influence extends beyond financial returns. By supporting innovative solutions for local businesses, the fund contributes to broader economic stability, indirectly impacting sectors like food security as highlighted in the news image above. By maintaining a focused yet diverse portfolio, the GO PA Fund aims to drive technological advancement while fostering economic vitality across Pennsylvania.
Investment Criteria
The GO PA Fund is strategically positioned to bolster Pennsylvania's innovation ecosystem by focusing on growth-stage technology enterprises. This fund channels its investments into companies that have already been vetted and supported by Ben Franklin Technology Partners, a statewide initiative known for nurturing technology-based ventures. This strategic focus ensures that the GO PA Fund invests in companies that have demonstrated market potential and are ready to scale. **Investment Criteria and Strategy** 1. **Investment Stages**: The GO PA Fund primarily targets growth-stage companies. These are businesses that have moved beyond the initial seed or early-stage rounds and have achieved some level of market validation. By focusing on these ventures, the fund ensures its investments are directed towards companies with proven potential for significant expansion. 2. **Typical Check Sizes**: The fund's investment amounts typically range from $1 million to $5 million per company. This range allows the GO PA Fund to provide substantial financial support necessary for growth-stage companies to scale their operations and innovate further. 3. **Geographic Preferences**: The GO PA Fund exclusively invests in companies based in Pennsylvania or those with significant operations in the state. This geographic focus aligns with the fund's mission to enhance Pennsylvania's tech landscape by leveraging the expertise of Ben Franklin Technology Partners' regional entities, which cover Southeastern, Northeastern, Central/Northern, and Southwestern Pennsylvania. The fund's alignment with Ben Franklin Technology Partners allows it to tap into a robust pipeline of over 600 technology-based ventures eligible for investment, ensuring a diverse and high-quality portfolio. The GO PA Fund's investment strategy is also supported by a multi-year, multi-round due diligence process, ensuring that each investment is thoroughly vetted. **Funding Rounds and Valuations** The GO PA Fund's stringent investment criteria and strategic alignment with Ben Franklin Technology Partners position it as a pivotal force in driving technology innovation and growth in Pennsylvania. This approach not only enhances the state's tech ecosystem but also ensures sustained economic development through targeted investments.
Track Record and Notable Exits
The GO PA Fund, a growth-stage venture fund organized by Ben Franklin Technology Partners, has emerged as a significant player in the realm of technology-driven enterprises in Pennsylvania. Launched in November 2023, the fund aims to capitalize on the rich portfolio of over 600 companies associated with the Ben Franklin network. Despite being relatively new, the fund has already made its mark with notable investments and a successful exit, reflecting its strategic investment approach. The GO PA Fund’s most prominent exit to date is the acquisition of Audigent on December 4, 2024. Audigent, a leading adtech company with a strong presence in Philadelphia, was acquired for an undisclosed amount. This exit not only underscores the fund’s ability to identify and nurture promising tech companies but also enhances its reputation in the investment community. The fund's ability to achieve successful exits like Audigent's acquisition is critical for maintaining its momentum and attracting future investments. As the fund continues to grow, it remains focused on leveraging its strategic partnerships and regional expertise to maximize returns. The fund's exit strategy is reflective of its broader investment philosophy, which emphasizes growth-stage technology businesses and leverages Ben Franklin’s extensive due diligence and regional insights. While detailed performance metrics like ROI or exit multiples are not disclosed, the fund's early achievements suggest a promising trajectory. As the fund continues to mature, tracking its performance and exit strategies will be crucial for understanding its long-term impact on the technology investment landscape in Pennsylvania.Team Composition and Decision-Making
The GO PA Fund is spearheaded by a team of seasoned investment professionals, leveraging their extensive expertise to drive successful investment outcomes. The team is led by Scott Nissenbaum, who serves as President and CEO of Ben Franklin Technology Partners of Southeastern Pennsylvania and President of the GO PA Fund's general partner. His leadership is complemented by Aston Pierce, the Investment Director, who brings a wealth of growth equity experience from his previous role at Edison Partners, focusing on sectors such as enterprise solutions, healthcare IT, and financial technology.
Additional key members include Ven Raju, Angelo J. Valletta, Steve Brawley, Elaina Shekhter, Omar G. Mencin, and Kathie Jordan. This diverse group contributes to a robust decision-making process, ensuring comprehensive evaluation and strategic investments.
Decision-Making Process
The GO PA Fund's investment decisions are grounded in a rigorous process that involves follow-on investments in technology companies from the statewide portfolio of Ben Franklin Technology Partners. This approach leverages Ben Franklin’s established multi-year and multi-round due diligence, ensuring that only companies with proven potential are considered. The fund targets growth-stage ventures, making investments ranging from $1 million to $5 million per company, focusing on sectors such as life sciences and software.
Investment decisions are made collaboratively, drawing on the collective expertise of the team and the extensive network of over 600 portfolio companies across Pennsylvania. This strategic collaboration ensures a comprehensive understanding of each potential investment's viability and growth prospects.
Unique Team Aspects
A unique aspect of the GO PA Fund's team structure is its integration with Ben Franklin Technology Partners across Pennsylvania, enabling access to a broad network and a wealth of experience in early-stage investments. The team's collaborative approach and strategic focus on follow-on investments in vetted companies contribute significantly to their success.
Value-Add Capabilities and Support
The GO PA Fund is instrumental in providing value-add services to its portfolio companies, primarily focusing on delivering growth capital and strategic support to technology-focused ventures in Pennsylvania. Here’s how the fund enhances its portfolio companies' growth trajectory through various services and initiatives: ### 1. Value-add Services - **Access to a Curated Pipeline**: The GO PA Fund selects investments from over 600 vetted startups and growth-stage companies supported by the statewide Ben Franklin Network. This access ensures rigorous due diligence and optimal investment choices, leveraging years of portfolio experience across Pennsylvania. - **Investment Size and Growth Capital**: With investment amounts ranging from $1 million to $5 million per company, the fund enables companies to advance beyond the seed stage, accelerate commercialization, and expand operations. - **Strong Local Anchoring and Collaboration**: By pooling capital and expertise from Pennsylvania’s four regional Ben Franklin entities, the fund supports companies throughout the Commonwealth, fostering a collaborative growth environment. - **Follow-on Support for Proven Companies**: GO PA Fund emphasizes follow-on investments in ventures that have demonstrated promise and traction in earlier Ben Franklin investment rounds, reducing risk and accelerating scale. - **Exposure for Investors**: Investors benefit from access to a highly curated deal flow, leveraging Ben Franklin’s screening, company-building expertise, and expansive networks for co-investment and exit pathways. ### 2. Support Examples Initial investments include companies such as **Audigent**, a data platform maximizing privacy-safe data use, and **LoanStar Technologies**, providing embedded lending services. These examples highlight the fund's focus on innovative, scalable technologies with strong local roots. ### 3. Unique Initiatives The fund's strategic approach not only supports company growth but also regional innovation ecosystem development, ensuring that promising Pennsylvania-born technologies remain funded, create jobs, and contribute to the state's economic vitality. ### Data Visualization: Key Metrics of Value-add Capabilities In conclusion, the GO PA Fund's value-add capabilities are centered on targeted growth capital, rigorous selection, cross-regional collaboration, and providing investors with access to Pennsylvania's most vetted and scalable technology ventures.Application Process and Timeline
The GO PA Fund offers growth-stage, follow-on venture capital, focusing exclusively on companies within the Ben Franklin Technology Partners’ (BFTP) portfolio. Here’s a detailed overview of the application process for entrepreneurs aiming to secure investment:
Application Steps
- Initial Funding with BFTP: To be considered for GO PA Fund investment, entrepreneurs must first secure funding from one of the four regional Ben Franklin Technology Partners organizations in Pennsylvania.
- Performance Evaluation: Companies must demonstrate strong growth potential, achieve significant business milestones, and showcase technology-based innovations to remain in good standing within the BFTP portfolio.
- Internal Selection: The GO PA Fund management team, in collaboration with BFTP staff, internally selects investment candidates from their existing portfolio, leveraging a multi-year, multi-round due diligence process.
Timeline
- October 2023: The GO PA Fund completed its first financial close.
- March 2024: The fund announced its first investments in companies like Audigent and LoanStar Technologies.
- Ongoing: The fund continues to raise capital, aiming to reach a total of $100 million, with $28 million already raised in its initial close.
Pitch Preparation
For entrepreneurs preparing their pitches, it is crucial to focus on demonstrating substantial growth potential and technological innovation. Highlight your company's progress and alignment with BFTP's objectives. Ensure clarity and conciseness, as the selection process is highly competitive and internally driven.
Given the private nature of the GO PA Fund's selection process, entrepreneurs are encouraged to engage directly with their respective BFTP regional organizations for further guidance and to ensure their company meets the necessary benchmarks for consideration.
Portfolio Company Testimonials
The GO PA Fund has been instrumental in providing vital support and resources to technology-focused companies across Pennsylvania. While direct testimonials from portfolio companies are limited, insights from fund leaders and partners highlight the significant impact of the fund.
Leadership and Investor Perspectives
Scott Nissenbaum, President and CEO of Ben Franklin Technology Partners, expressed the fund's mission to bolster technology companies with essential capital. He stated, "The GO PA Fund's goal is to give Pennsylvania's technology-focused companies even greater capital resources to thrive, while aligning investors within and beyond the Commonwealth with their success."
Similarly, Lou Lombardi, Senior VP of Fulton Bank, emphasized the strategic focus on life sciences and technology sectors, saying, "Fulton's investment in this fund represents our commitment to providing much-needed capital to help fuel the growth of the life sciences and technology sectors in Pennsylvania."
Success Stories and Community Impact
The predecessor GO Philly Fund demonstrated success with companies like Tridiuum, which achieved a $100 million acquisition shortly after receiving an investment. This serves as a testament to the fund's ability to foster growth and successful exits.
Further highlighting community impact, RoseAnn B. Rosenthal, former President and CEO of Ben Franklin Technology Partners, noted the expansion of regional impact through engaging new investors. Margaret Berger-Bradley, VP of strategic initiatives, emphasized local investment opportunities, advocating for reinvesting in home-grown ventures.
Conclusion
While direct testimonials from portfolio companies are sparse, the GO PA Fund’s track record and strategic focus illustrate its supportive role in fostering growth within Pennsylvania's technology sector. The fund continues to strengthen the local innovation ecosystem, driving both economic and community benefits.
Market Positioning and Differentiation
GO PA Fund positions itself uniquely in the venture capital market by focusing on growth-stage technology companies within Pennsylvania, leveraging the extensive portfolio of Ben Franklin Technology Partners. This strategic positioning is supported by several unique selling points and competitive advantages that differentiate it from other VC firms. ### Unique Selling Points 1. **Statewide Collaboration**: GO PA Fund is a joint initiative involving Ben Franklin Technology Partners across Southeastern, Northeastern, Central & Northern, and Southwestern Pennsylvania. This collaboration is unprecedented in its scope and aims to support technology innovation across the entire Commonwealth. 2. **Focus on Growth-Stage Investments**: Unlike many VC firms that concentrate on seed or early-stage funding, GO PA Fund targets businesses that have already shown promise, specifically those seeded by Ben Franklin. This focus allows the fund to concentrate on follow-on investments necessary for scaling up. 3. **Strategic Investor Alignment**: The fund aligns institutional and individual investors both within and beyond Pennsylvania, fostering a supportive ecosystem for the region’s technology sector and ensuring that investment dollars remain local. 4. **Large, Qualified Pipeline**: GO PA Fund has access to a vetted pipeline of over 600 companies from Ben Franklin’s portfolio, providing a substantial number of promising opportunities for investors. 5. **Capital Structure and Investment Scale**: With an aim to secure up to $100 million in commitments, the fund plans to invest between $1 million to $5 million per company, surpassing its predecessor, the GO Philly Fund. ### Market Share and Competitive Advantages GO PA Fund's market share is primarily within Pennsylvania, where it is positioned as a leading growth-stage VC fund for technology ventures. Its competitive advantages include: - **Rigorous Due Diligence**: Leveraging Ben Franklin’s multi-year, multi-round due diligence minimizes investment risk and transaction costs, setting the fund apart from generalist or single-region VC funds. - **Initial Investments and Target Sectors**: The fund’s initial investments in companies like Audigent and LoanStar Technologies indicate a strategic focus on sectors such as enterprise software, fintech, and data-driven solutions. - **Mission-Driven Approach**: GO PA Fund’s mission to boost Pennsylvania’s technology companies emphasizes local innovation, encouraging investors to prioritize regional over global markets. ### Awards and Recognitions While specific awards or recognitions for GO PA Fund are not detailed, its strategic alignment with Ben Franklin Technology Partners and its ambitious capital structure highlight its esteemed position in the market. ### Competitive Matrix In summary, GO PA Fund’s market positioning centers on being Pennsylvania’s premier growth-stage VC fund for vetted technology ventures, leveraging statewide collaboration, a substantial deal pipeline, and institutional investor backing to accelerate innovation and capital formation within the state.Contact and Next Steps
The GO PA Fund, managed by Ben Franklin Technology Partners of Southeastern Pennsylvania, offers several channels for entrepreneurs seeking investment. Below are key contacts and steps to engage with the fund.
Contact Details
- Scott Nissenbaum
Managing General Partner, GO PA Fund
Email: scott@sep.benfranklin.org - Jason Bannon
Contact for media and general inquiries
Email: jason.bannon@sep.benfranklin.org
Communication Channels
Entrepreneurs can reach out to the GO PA Fund through:
- Email: Direct emails to Scott Nissenbaum and Jason Bannon are encouraged for specific inquiries.
- Official Website: Visit gopafund.com for detailed information on the fund's purpose, team, and portfolio.
- Parent Organization: Additional contact points are available through Ben Franklin Technology Partners' channels.
Next Steps for Entrepreneurs
Entrepreneurs interested in pursuing investment with the GO PA Fund should prepare a comprehensive business plan and pitch deck. These materials should highlight market potential, financial projections, and team capabilities. After initial contact, you may be invited to submit these materials for review. Participation in regional events and forums hosted by Ben Franklin Technology Partners can also facilitate engagement with the fund.
