Lancaster Prospers

Lancaster Entrepreneurs Pitch a Gem in Front of All Star Team of Investors

9 Local Companies Given Chance to Shine in front of Potential Investors

LANCASTER, PA – September 13, 2006 – Hours before the first pitch was thrown on the field, nine Lancaster entrepreneurs were pitching their business plans to an all-star team of investors at Clipper Stadium on August 31. Seventy Lancaster business leaders and the Lancaster Prospers Entrepreneurship Committee came together to create Uniting: Venture Capital and Innovation to give local entrepreneurs a forum to showcase their companies and increase their chances of raising venture capital.

Catching the pitches was a distinguished investor panel representing private equity, venture capital and angel investors in the Mid-Atlantic region. A sell-out crowd of over seventy Lancaster (PA) business leaders watched enthusiastically as nine Lancaster start-ups did their best to sell their unique propositions in hopes of securing additional funding.

“The night was a grand-slam, exceeding all expectations,” according to Ira Wolfe, chairperson of the Lancaster Prospers Entrepreneurship Committee. “Our goal was simple: to get local entrepreneurs face-to-face with investors.”

Tasked with starting the committee from “scratch” over two years ago, Wolfe likened the committee experience to that of an entrepreneur starting a business. “We knew we had a great idea and the committee had a lot of energy and enthusiasm, but we didn’t have a plan or the money to implement one.”

After a series of focus group meetings with entrepreneurs and business resource organizations offering help to start-ups, the committee hit its stride in late 2005 when it was introduced to a west coast initiative called Venture Communities. Venture Communities, a community economic model stimulating entrepreneurship and innovation, was founded by Chico, California-based Golden Capital Network (GCN) partners Jon Gregory and Jim Mikles. GCN was looking for their first east coast community. Lancaster was the perfect spot.

“The road to Clipper Stadium wasn’t paved with gold,” said Wolfe. Following an announcement in the late spring about our first event, the committee met some resistance from a few local leaders and investors. “This only added fuel to our commitment. The more our story was told, the more people we engaged, and the more support we received.”

Participating in the event were:

PA Department of Community and Economic Development;
Pennsylvania Angel Network;
Technology Council of Central Pennsylvania; and
Ben Franklin Technology Partners.

Sponsors of the event were:

Success Performance Solutions;
Action International;
Business2Business Magazines;
Economic Development Company of Lancaster Company;
ASSETS Lancaster;
SBDC/Kutztown University of PA;
Library System of Lancaster County; and the
Lancaster Chamber of Commerce.

“I met outstanding entrepreneurs through Lancaster Prospers,” said Jose Ferreira, a partner with New Atlantic Ventures -Draper Atlantic Ventures Fund. “In fact, I’ve already referred two of the companies who presented to my colleagues for potential ventures funding.” Other panelists included David Freschman from Innovation Ventures LP/Delaware Innovation Fund, Valerie Gaydos from Pennsylvania Angel Network, Dean Kline from Penn Venture Partners LP and Dan Yount from Mid-Atlantic Venture Funds.

“The pre-event coaching was invaluable to us,” Jerry Kindrachuk, CEO of Amber Biodiesel.“It was great, from the initial review of our business summary to the online presentation coaching, it was like nothing I’ve ever experienced.”

Pete Ritt, representing ND Holdings INC, agreed. “The online coaching provided valuable tips that helped focus on key points that investors would be looking for and strengths that our company should accentuate.” The coaching “helped me think more from an investor point of view and less from the technical end,” according to Joe Habib, founder and CEO of Illuminex.

“Venture Communities isn’t all about funding,” notes Wolfe. “Sometimes capital is not the biggest challenge.” For some companies, it’s lack of a qualified management team. For others, like ND Holdings, one of the presenters, the challenge might be finding a manufacturer for the product or the lack of a marketing plan to get the product to market while protecting its intellectual property. According to Wolfe, Venture Communities is about networking innovation growth entrepreneurs with the right advisors, the right investors, and the right opportunities.

What’s next for Lancaster Prospers? According to Wolfe, the committee will have its work cut out for them. Putting on a successful event is rewarding but it’s only a means to the end; how many entrepreneurs get the advice and funding they need is how Lancaster Prospers will measure its success. The Lancaster Prospers Entrepreneurship Committee heads back to evaluate the team they put together as they prepare to help Lancaster growth companies get ready to “play ball.”

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