Two years after the city of Philadelphia launched a $3 million seed fund, the fund has invested in a medical device company — one of four companies to receive investments topping $700,000 and the only healthcare business among them.Velano Vascular received $400,000 from the fund. The medical device company is developing a needle-free approach to drawing blood.In addition to the seed fund, an angel fund that will make investments of $25,000 to $100,000 has been created.
The Startup PHL Angel Fund will be managed by Philadelphia’s public-private economic development corporation — PIDC — and Josh Kopelman of First Round Capital, according to a statement from Philadelphia Mayor Michael Nutter. The fund will co-invest with angel investors to help early stage companies.The two funds are intended to give startups more incentive to stay in the city.
Although Philadelphia’s startup ecosystem is growing steadily, it has lacked the investment infrastructure that has made places such as San Francisco, Boston and New York more attractive to entrepreneurs. Advertisement“For Philadelphia to continue to grow we must be a city that welcomes exciting, innovative companies and the type of talented workforce that wants to work for those companies,” said Nutter in the statement.
“Through Startup PHL our goal is to send the message that Philadelphia is one of America’s great startup cities and that we are committed to helping entrepreneurs start and grow their businesses in our city.”Healthcare startups have been growing through the launch of a third healthcare accelerator in Philadelphia this year, in addition to DreamIt Health,the accelerator for Canadian health IT businesses and another healthcare accelerator in the works. Universities such as Drexel, Penn and Temple have also been transforming themselves into communities that encourage and support entrepreneurs.