Mentoring, Financing Linked for Pittsburgh Biotech Firms

Financial success for any start-up tech firm more often depends on adequate financing and proper management than the specific technology, experts say. Two tech-based economic development organizations in Pittsburgh have formed a new alliance to offer entrepreneurial life science firms with an eye toward greater sustainability and profitability.

The Pittsburgh Life Sciences Greenhouse (PLSG), a partnership to put the region's life sciences industry on a fast track for growth, and Idea Foundry, a nonprofit organization that helps entrepreneurs transform their ideas into sustainable businesses, entered into a joint funding agreement for early stage medical device companies.

Under the agreement, PLSG will participate in Idea Foundry's transformation fellowship application process to jointly determine if start-up company applicants are viable business ideas for the partnership. Upon approval, PLSG and the Idea Foundry will jointly fund and provide complimentary development assistance.

The Greenhouse will provide its funding through its affiliate, the Pittsburgh Biomedical Development Corporation. Administration of the funding and delivery of the business development and mentoring services will be managed through Idea Foundry's TechMentor Program. The Idea Foundry will release funds to the company based upon a detailed budget that aligns with overall company development milestones and respective accomplishments.

medSage Technologies, LLC, the first beneficiary of the new partnership, received a $200,000 pre-seed investment to help improve its operations over the next year. medSage will look to expand its market presence, bring additional patient and pharmacy applications to the market and build out the company infrastructure to support growth. In addition, as part of the Idea Foundry investment offering, medSage will receive business development and mentoring support services.