Chesco's Ideas x Innovation Network Raised $250 Million For Economic Development

EXTON, PA — Client companies of the Chester County Economic Development Council's Ideas x Innovation Network have raised $253 million in Delco, Chesco, and southeastern Pennsylvania for work that services life sciences and advanced technology companies.

Vice President of Innovation and Marketing at the Chester County Economic Development Council (CCEDC) Patrick Hayakawa explained, "This translates to more than 1,000 jobs created, hundreds of patents filed and tremendous downstream economic impact for the region."

"Through its services, Ideas x Innovation Network (i2n) provides clients with the tools and connections needed to raise capital and deploy that capital to advance their growth. This milestone includes both grants and investors dollars that i2n companies have raised, and their success is a testament to this style of economic development," he added.

From the merger of the Chester and Delaware County Keystone Innovation Zones i2n was formed in 2012. Today it serves more than 100 entrepreneurial and technology-based companies per year across southeastern Pennsylvania.

Many of these companies presented to i2n's Board of Directors are regular participants in the i2n Entrepreneurs' Roundtable and used pitch feedback through i2n's Open Coaching Program to attain funding of all types during their innovation journey from pre-formation to product launch and profitability. Sectors served include software, biotech, medical devices, digital health, and clean tech.

"Individual i2n client companies not only benefit from up to $100,000 per year in Keystone Innovation Zone (KIZ) state tax credits, they also get an abundance of needed services available from i2n’s stakeholders, investors, educational institutions, experienced entrepreneurs, and strategic advisors," said Guy Fardone, i2n Board Chair and former CEO and Founding Partner of Evolve IP.

Notable i2n client companies from the past and present include YPrime, VenatoRx, Evolve IP, Navrogen, Curotec, EigenX, Unilog Content Solutions and Melior Discovery.

Among the most recent successful venture capital raises are for Sweft, a Philadelphia-based company that automates the process of launching new products online for large e-commerce retailers, a company news release explained.

Following their pitch to the i2n board and i2n pitch coaching, Sweft won Best in Show at PACT's Phorum 2021 in April and is in the process of closing its most recent funding round at $750,000. Since June, Sweft has hired a Chief Technology Officer and Chief Revenue Officer. Sweft is currently interviewing for three software development positions.

First-time founder and Sweft CFO Julie Bula is a former retail executive at Free People. She said, "Amazingly, some of the largest retailers in the country are still managing the workflow to populate online product detail pages through their own outdated Excel spreadsheets. It's incredibly inefficient and costs them sales and margin. We automate that process."

Bula credits i2n with providing the next-level pitching support that Sweft needed. Bula explained i2n really helped Sweft to understand optimum ways to pitch, in an environment where you can get feedback from other potential investors and entrepreneurs. "They helped us generate more buzz about our company in the local community, as well as put our best foot forward in the larger marketplace," said Bula.

Another recent success story is i2n client company SOLUtion Medical LLC. SOLUtion is developing a device that helps patients safely and efficiently inject life-saving medications that otherwise might take up to 14 user steps to pre-mix, a news release explained. First-time founder, President and Chief Strategy Officer Julia Anthony was inspired by her own medical condition, as well as that of her brother. Both require a rescue autoinjector to treat Congenital Adrenal Hyperplasia.

SOLUtion just successfully closed its seed round at $860,000 of which $50,000 is undiluted from Children’s Hospital of Philadelphia. The funds were raised on a Convertible Note that was oversubscribed, a news statement said. SOLUtion Medical is currently focused on further testing ahead of submissions for FDA approval. The company has expanded its team with a new CEO, VP of CMC and Supply Chain, and Director of Innovation and Human Factors.

Anthony said, "i2n was a great resource for fundraising, brainstorming, as well as partnerships and meeting other entrepreneurs in our space. Our pitch to the i2n board resulted in a relationship with a crucial contact in big pharma."

A public-private partnership, i2n provides access to funding, workspace, mentorship, and key business connections. Funding support includes access to KIZ tax credits — up to $100,000 per year are sellable — as well as pitching, coaching, and business development strategy; state and federal R&D tax credits; guidance for SBIR and STTR applications; seed and bridge funding from a regional angel network of individual and group investors; $4 million from the Venture ChesCo fund for Chester County startups in partnership with Ben Franklin Technology Partners; and small business loans through state and federal programs at low, fixed rates through Seedcopa.

The Chester County Economic Development Council is a private, non-profit economic development organization promoting smart growth in Chester County and the surrounding region for more than 60 years. The CCEDC provides proven financing solutions, cultivates workforce talent, leverages business partnerships, and fosters entrepreneurial collaboration. With the support of the private and public sectors, CCEDC initiates, implements and innovates programs that improve the business community and enhance the quality of life in Chester County. For more information go here.

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