Guest Editorial: Early-Stage Support Is More Important Than Ever for Entrepreneurs
By Ron Bianchini
Chairman, Ben Franklin Technology Partners/Innovation Works and president/CEO of Avere Systems.
Is investing in early-stage technology companies a long-term strategy to grow jobs in and import capital to Pennsylvania? There’s only one way to put it—yes! As a serial entrepreneur and chairman of Innovation Works, the Ben Franklin Technology Partner of Southwestern PA, I know firsthand how many talented people can be employed at successful technology companies and how these startups attract investment from all over the country.
Chairman, Ben Franklin Technology Partners/Innovation Works and president/CEO of Avere Systems
In 2008, I helped launch my third technology startup company in Pittsburgh, Avere Systems. Scalable Networks, Spinnaker Networks and now Avere were born out of our co-founders’ background in networking and data storage systems. Pittsburgh’s research strength in these areas generates innovative ideas, great partners and talented employees.
In total, my partners and I have raised more than $50 million for these local companies from venture capital firms in Pittsburgh and on the West Coast. In addition, we have been able to employ more than 150 people. Many of the people we’ve hired are trained in Pennsylvania’s universities and are excited to stay in Pittsburgh for the right opportunity. My background is in academia—I taught electrical and computer engineering at Carnegie Mellon University—so I’m particularly proud to offer creative, talented young people a place to apply their innovative ideas in my adopted hometown.
The Big Picture View
Why does this matter on a bigger scale? Because innovation is the key to creating more high-paying jobs in our state and our nation. Analysts say innovation is critical to any strategy to replace lost American jobs. Justin Rattner, chief technology officer for Intel, recently said in an interview, “Tens of millions of jobs were created from the innovations around the Internet. It’s time to do that again. Now is the time to be investing again [in innovation].”
The biggest need facing entrepreneurs is a proper support system. —Ron Bianchini
I agree with this, because I recognize that true breakthroughs in innovation can take a long time to materialize and need plenty of resources to get there. The first company I launched in 1994 was built on expertise that the founders gathered from years of education at Universities like Carnegie Mellon, where I taught. Ideas for new technologies need time and space to develop into commercialized products. And technologists need mentors and resources to help them build, manage and market their products. An up-and-coming entrepreneur could have the best idea, but without a realistic business plan, budget and goals, merely having a great concept isn’t enough.
The Value of Ben Franklin Technology Partners
That’s why it’s so rewarding for me to work with Innovation Works as chairman, and why so many other experienced entrepreneurs, investors, academic and community leaders fill the boards of all four of the Ben Franklin Technology Partners. We recognize from our personal roles in business, academia and finance that there is a gap to be filled between revolutionary ideas and corporate success. Becoming a successful entrepreneur today takes strategic thinking, the ability to transform an idea into something tangible, a viable business plan and so much more. Everyone guiding the BFTP centers brings expertise to the table to help fledgling companies in Pennsylvania achieve their goals of growth. And when these companies grow, jobs and state revenues grow, and capital flows into the state.
Take a look at the great examples of BFTP client companies profiled in this issue of Keynotes to get a taste of the extraordinary companies creating innovative technologies and growing jobs across the state.
Last year alone, BFTP companies created and retained more than 3,300 high-paying jobs (on average, paying 33 percent higher than Pennsylvania’s average salary). And these companies went on to raise $872 million in additional financing, money invested in our Pennsylvania companies from private investors (angels), venture capitalists, corporate partners, federal research grants and other sources.
When I look at the entrepreneurs coming into Innovation Works for assistance, I see an earlier version of myself. Fortunately, Ben Franklin Technology Partners is available to help those who are dedicated to their idea and vision, and I’m proud to be a part of this process for many fledgling businesses on their way to success.
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