Only a few yards away from Iaccoca Hall lies Ben Franklin Technology Partners Northeast, housed in the building TechVentures, one of the largest incubator networks in the United States.
Angelo Valletta, president and CEO of Ben Franklin Northeast, said an incubator network like Ben Franklin provides investment and resources for pre-revenue businesses, meaning they haven’t made any profit yet.
Unlike private investors, Valletta said Ben Franklin Northeast only takes a small percentage — usually between 2% to 5% — of the company, allowing companies to run their own businesses accordingly.
Ben Franklin Northeast is a nonprofit organization funded through the Pennsylvania Department of Community and Economic Development. Valletta said the Northeast branch located at Mountaintop is an affiliate of Lehigh and leases its location from the university.
Provost Nathan Urban said former Pennsylvania Gov. Dick Thornburgh created the Ben Franklin initiative in 1983 as a way for the state to kickstart the economy and create jobs.
Ben Franklin provides investment opportunities within 21 counties in Northeast Pennsylvania, while three other locations cover the rest of the state. While each location is dedicated to economic development and job creation, Valletta each of them runs differently and independently.
“While we have a connection from an overall Ben and state perspective, because we attack things together, we run independently,” Valletta said.
He said the Bens are either approached by or recruit businesses, and they are often the first investor outside of friends and family. They also provide investments that allow companies to retain jobs.
“At the end of the day, we’re here to refresh, retain and reimagine jobs for the state of Pennsylvania,” Valletta said. “And we do that by investing in early-stage organizations, established manufacturers and traditional technology incubators in the Northeast.”
Ben Franklin focuses on technology-based innovation. The 230,000-square-foot Mountaintop facility, formerly part of Bethlehem Steel, houses around 40 companies and includes wet labs, hoods, exhaust systems and other specialized equipment. There are two floors of labs and one floor with office spaces and conference rooms.
“When we say tech, we’re thinking advanced materials,” said Wayne Barz, Ben Franklin’s chief investment officer. “We’re thinking life sciences and life science processes, devices, therapeutics, biologics, diagnostics and definitely software.”
Given the nature of the facilities, Urban said there is innovation occurring at Mountaintop that couldn’t happen on the Asa Packer Campus or even most places in the country.
Space in the TechVentures facility on Mountaintop is based on the company’s individual needs and have the advantage of the Ben Franklin, Northeast ecosystem. Valletta said companies that Ben Franklin invests in can also use Lehigh labs and facilities.
Urban said the TechVentures building also provides a workspace for students in the Business Innovation Building in the Lehigh Ventures Lab, an offshoot of the Baker Institute. This lab helps students and recent alumni move from idea generation and development to the formation of a venture that may eventually move to an incubator network such as Ben Franklin.
Urban said this is an important attempt to build a clear pathway for students from idea generation to company creation.
“For every dollar that’s invested by the state of Pennsylvania into the Ben network, $4 is returned to the state in tax revenue,” Valletta said. “It is by far one of the better investments for the state of Pennsylvania.”
Urban said TechVentures supports students and local businesses in putting their ideas into action.
“I’d like to create a culture where students are coming to Lehigh explicitly because they see an opportunity,” Urban said. “For example, to work at a startup at Ben Franklin, and then — after working at a startup for a few years — they can take their own idea and launch it. That, to me, is something we should be looking to (do).”
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