The Department of Community and Economic Development (DCED) and the Ben Franklin Technology Development Authority (BFTDA) announced it awarded $1 million to a new Pittsburgh-based fund focused on investing in early-stage technology companies throughout the region and in the Midwest.
DCED Sec. Dennis Davin, who announced on Thursday that he will be resigning from his role in February to take on a post at real estate firm JLL, said the funding award will go to BTVC Fund I LP, which is managed by Pittsburgh investment firm BlueTree Capital Group.
BTVC Fund I will look to make up to six different startup company investments per year, with these investments ranging in size from $500,000 to $2 million per company. To date, it has raised $12.5 million and will soon begin investing in startup companies.
“Investing in companies that honor Pennsylvania’s spirit of innovation is a critical component of the commonwealth’s future success,” Davin said in a release. “By providing funding for venture capital firms that seek inventive and cutting-edge start-up companies, we create communities where people want to live and work, and foster a friendly business climate, all of which gives way to an improved quality of life for Pennsylvanians.”
Companies eligible for the funding must meet several key requirements, according to DCED. They must have revenue and a honing in on their product/market fit, among others.
According to Catherine Mott, BlueTree’s president and CEO, BTVC is vying to raise $30 million to $50 million and is focused on Series A funding rounds for startup companies operating between Pittsburgh and Chicago. The fund's sources come from BlueTree's angel network of high-net-worth investors, many of whom reside in western Pennsylvania.
