Penn Venture Partners was formed to take advantage of the significant, unfulfilled opportunity for investment in promising companies in Central and Northern Pennsylvania. Penn Ventures’ first fund targets companies with successful products or services or proven technologies or market niches that offer the potential for growth and attractive returns. The Fund does not have a specific industry focus but seeks to invest in a diversified portfolio reflecting the nature of Central and Northern Pennsylvania’s economy. Investments may be made in companies requiring capital to grow or expand and occasionally may be made in a new company with exceptional potential. The Fund’s activities are also expected to stimulate economic growth creating and retaining employment in the region as a direct result of its investing activities.
Each initial investment is expected to range from $500,000 to $1,250,000, depending upon the needs of the particular company. The total investment in any particular portfolio company, including follow-on financing as the portfolio company achieves its goals, will generally not exceed $2,000,000. Eighty percent of portfolio companies must initially satisfy the SBA-required size limitation for smaller businesses. These general limitations are a net worth no greater than $6 million and, for each of the prior two years, annual profit after tax must not exceed $2 million. Investment in somewhat larger companies may be permitted pursuant to industry specific SBA regulations. The Fund expects to hold investments in these companies from two to five years.