It's hard enough to be a high-tech start-up these days, and getting a new one off the ground can be an even greater challenge. This challenge is precisely the business of PenNetWorks, an incubator intended to bring new high-tech businesses to West Philadelphia and cater to Penn students, faculty and staff. Designed to help other companies get started and grow, PenNetWorks is a joint venture of the University and Pittsburgh-based Redleaf Ventures. The incubator is located in the University City Science Center on Market Street. Many analysts have raised concerns that the economy is entering a slowdown and may soon face a recession. This economic shift could create problems for Redleaf's investors as well as the new companies. Some of Redleaf's investors, including Safeguard Scientifics, Hewlett-Packard, Novell and Grupo Prisa, have already suffered substantial decreases in their stock prices. But PenNetWorks Chief Operating Officer Craig Markovitz is confident of PenNetWorks' prospects. "They're all good, well-established companies," Markovitz said of Redleaf's investors. Markovitz explained that Redleaf has been particularly careful in selecting new companies to assist. "Redleaf has always been very thorough in their due diligence," he said. He added that the company has experience with analyzing and operating start-ups. Markovitz emphasized that PenNetWorks is, first and foremost, interested in good ideas, and that regardless of the economy's condition, it will always be possible to get financing for a good idea. PenNetWorks has not yet finished choosing clients. According to Markovitz, the company will soon reveal its member companies. "We're fully ready to roll," Markovitz said. "Our target is to do seven companies this year, and we'll hit that." He would not say when the announcement will come, only that each selection will be announced once negotiations are completed. Markovitz said that PenNetWorks has received about 60 proposals so far, three quarters of them from Penn faculty, staff and students. He expects to receive 500 to 1,000 proposals per year. The company will be staging open houses and seminars during the coming months in order to promote itself to the University community. PenNetWorks is the first of four incubators planned for P2B, a nonprofit corporation established by the University.
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