Innovation at the heart of Ben Franklin Technology Partners

Apr. 30—When most entrepreneurs and companies first approach Ben Franklin Technology Partners of Northeastern Pennsylvania, they are looking for capital. But ultimately they receive so much more than financial support, according to Ken Okrepkie, Pocono Northeast regional manager.

"I can invest up to $100,000 in a given funding round. I can do that over a period of years up to $450,000. If the company goes on and raises venture capital, we could follow on that funding up to $500,000," he said. "But in the end, the real value is the fact that we have a solutions network of hundreds of consultative resources that can solve problems like sales and marketing strategies, managing cash flow, raising capital, so that if an entrepreneur doesn't have that skill set, we can ... help them provide the strategic plan, or guidance.

"So I think the biggest value to Ben Franklin — although the money is great, and people will continue to come to us for an investment in capital — most importantly, it's the ability to tie them to our solutions network or promote the companies within our network."

'An innovation engine'

Okrepkie described Ben Franklin Technology Partners, which is funded by the Pennsylvania Department of Community and Economic Development, as "an innovation engine for the Commonwealth of Pennsylvania." He broke it down into three parts, with innovation at heart of each:

—An early stage seed fund that invests capital to help entrepreneurs with novel and new technologies to create jobs.

—A support system for manufacturing companies, which Okrepkie refers to as "the anchors in our communities."

—A champion for the entrepreneurial ecosystem, which ties into the strong regional business incubator network.

Founded in 1983, Ben Franklin includes four regional branches — one in Pittsburgh, one in Philadelphia, one that runs from Erie to Harrisburg, and the Pocono Northeast which covers 21 counties. Okrepkie, who joined Ben Franklin 15 years ago, oversees the six counties that border New York and New Jersey.

Regional evolution

Okrepkie said a lot has changed in the past 15 years. Back then, the region didn't have as many resources for aspiring entrepreneurs and businesses just starting out. And the resources that did exist were in competition rather than working together. It took a lot of vision and hard work by many, but an economic development community was eventually established.

"Now you have people who want to see these companies grow and bring resources to those entrepreneurs — that infrastructure has changed," Okrepkie said.

He added that 2024 is a great time to be an entrepreneur — especially a tech entrepreneur — in Northeast Pennsylvania.

"You have the benefit of the SBDC, the benefit of Ben Franklin, the benefit of the Ignite program in Scranton, the Connect program in Wilkes-Barre, the CAN BE Innovation Center and program in Hazleton. You have a series of people who are collectively working together to help these entrepreneurs realize their dreams. And then you have the Keystone Innovation Zone program that's supportive of all the downtowns in the incubators, where an entrepreneur could generate $100,000 tax credit that will be sold for $85,000 for up until the company is eight years old. So there's really a system now — there are resources here to help you solve problems."

Success by the numbers

As evidenced by the numbers, this new economic ecosystem is working.

Since 1983, Ben Franklin:

—Helped launch 535 companies.

—Helped create over 20,000 jobs and retain another 56,000.

—Helped to leverage $59.2 billion in capital through companies investing it its clients.

"On average, the companies that come through Ben Franklin will leverage our investment five to one," Okrepkie said. "So if we invest, say a total of $200,000, on average, those companies will raise $1 million. And we have companies in our portfolio that have raised $7 million, $10 million, $20 million-plus.

He added that every dollar Ben Franklin invests will return $4 in tax revenue back to the Commonwealth.

"When a company grows, they also create tax revenue," he said. "So we're a good investment for the taxpayers. And I think that has grown and evolved over the 40-plus years that we've been in existence."

He also noted the average annual salary for jobs created by technology companies is around $79,000 — 52% more than the average wage in the state.

What's next

So what's next for Ben Franklin? For one thing, to keep doing what what they're doing.

"Investing in early stage technology companies for the last 40 years has provided a great return on investment, not only for the Commonwealth of Pennsylvania, but for Northeastern Pennsylvania," Okrepkie said. "So we need to continue to do that. Early stage access to capital is what allows entrepreneurs to build companies. That's at the ground level."

Okrepkie also listed some specific initiatives and goals Ben Franklin has its eyes on:

—Pennsylvania's industrial hemp engine.

"We're talking about utilizing hemp as a product for ceiling tiles or flooring tiles or clothing or construction materials," he said. "So the goal is to revitalize that industry here. ... We've already invested in three companies within our 21 counties — one in Hazleton, one in Sunbury and one in the Reading area — that are working with industrial hemp.

—Connecting students at local colleges and universities to the entrepreneurial community.

According to Okrepkie, 11,000 students graduate annually from the 14 colleges in Northeast Pennsylvania.

"I think we could do a better job of making sure that not only do they know those workforce opportunities are here after they graduate, but connecting them so that they can be part of that entrepreneurial experience."

—The establishment of a regional angel fund.

"I'd like to see the continued acceleration ... of the successful tech startups that have been a part of the last 20 years of everything I've just talked about," he said. "So that we go from having Ben Franklin, which provides early stage seed capital, and a handful of angel investors in Northeastern Pennsylvania, to having a managed angel fund."

—Attracting venture capital.

The region is already attracting significant capital, but Okrepkie believes there is potential for much more.

"The next step would be to have a venture capital fund here ... that sees the companies that are growing, sees the companies that are getting to exit, and sees this is a place they need to be," he said.

"So we look out 10 to 20 years, and it would be my hope that we will get to a place where we have enough success and enough energy and momentum where that becomes a reality."