PA Invests $2M in Neovate for MedTech and BioPharma Startups Expansion

Neovate's Investment Boosts Pennsylvania's MedTech and BioPharma Start-Ups

In a strategic move to bolster innovation and economic growth, Neovate Life Sciences GP I, LLC (Neovate) has been awarded $2 million through the Ben Franklin Technology Development Authority (BFTDA). This investment is set to fuel start-up MedTech and BioPharma companies in Pennsylvania, highlighting the state's commitment to fostering a thriving life sciences industry.

Pennsylvania's life sciences sector, valued at nearly $50 billion, benefits from robust research and development efforts at institutions like the University of Pennsylvania, University of Pittsburgh, and Pennsylvania State University. These universities collectively spend over $1 billion annually on research, placing Pennsylvania 4th in the nation for life sciences R&D spending. The state's companies have secured 10,783 new life sciences patents in the past five years, further underscoring its role as a leader in the field.

Governor Josh Shapiro's administration has been instrumental in promoting this growth, with over $3.7 billion in new private sector investments announced since the beginning of 2023. As part of this effort, Governor Shapiro's 2025-26 budget proposal introduces a $50 million PA Innovation program aimed at enhancing the state's economic development and innovation standing.

Secretary Rick Siger of the Department of Community and Economic Development (DCED) emphasized the state's commitment to the life sciences sector, stating, "Neovate will finance start-up life sciences companies in the Commonwealth that will create opportunities for growth, innovation, and jobs in our communities."

With offices in Pittsburgh, Neovate was co-founded by Mike Green and Matt Harbaugh. The venture capital firm focuses on early-stage companies in the medical device arena, a key area for innovation and economic development in Pennsylvania.

The investment aligns with Pennsylvania's 10-year economic development strategy, which prioritizes life sciences as one of its five key industries. The Shapiro Administration recently announced a $1.72 million investment in First Ascent Biomedical's expansion at Gannon University and supported GSK's $800 million expansion in Marietta, which is expected to create over 200 high-paying jobs.

Governor Shapiro's 2025-26 budget proposal includes more than $160 million in new and expanded investments to enhance competitiveness and address critical needs, with a focus on fostering innovation. This includes:

• $50 million for the PA Innovation program, including $30 million for life sciences job growth and $20 million for large-scale innovation initiatives.
• $10 million for AdvancePA tax credits to create high-quality jobs.
• $12.5 million for WEDnetPA to expand the workforce and fill critical gaps.
• $2 million for Career Connect to build internships at Pennsylvania companies.

For more details on BFTDA or DCED, visit the DCED website. Stay updated on agency news via Facebook, X, and LinkedIn.