One year ago, the University launched PenNetWorks, a startup accelerator to support developing technological and scientific companies as part of Penn's initiative to bring Penn's business ideas to reality.
And in that year, though PenNetWorks has worked to develop 10 fledgling businesses, the mission of Penn's business initiative has shifted significantly.
PenNetWorks was originally one of four incubators -- infotech, biotechnology, distance learning and e-commerce -- proposed by the University's P2B, a non-profit initiative to jumpstart research and businesses coming out of Penn. However, with the experience of developing and running PenNetWorks, the group has determined that "individual incubators don't make as much sense," said Philip Goldstein, the chief operating officer of P2B.
P2B now has two broad areas of focus, one in educational ventures and the other in a wider scientific field of startups. In educational ventures, the idea of partnering companies with the Penn schools is being elaborated on. Driven by the schools' interests, the ability to teach could open up new markets, including continuing education and certification programs.
With the principle of bringing together the venture capital and technology gained from PenNetWorks, the initiative will concentrate on taking software and hardware technology and broadening it to include all scientific fields and relating them with various venture capitals.
This plan "is more aligned with what the institution needs," Goldstein said.
Since April, PenNetWorks has worked with six Penn student projects and two Temple University groups.
And two months ago, PenNetWorks officially provided funding for two companies -- Secure Building Blox Inc., and expenseAdvisor.
Secure Building Blox, created by Penn researchers William Arbaugh, David Farber, Angelos Keromytifi and Jonathan Smith, is centered around technology that validates the integrity of a PC from its startup to its boot-up process. PenNetWorks is aiding the company, who has a license from the Center of Technology Transfer for developing technology for computer security, in designing a commercialization strategy.
ExpenseAdvisor is headed by Wharton alumnus Laks Srinivasan. It provides relations management tools, which fall under a class of software products that track customers, to financial institutions and financial portals. The technology is based on research done by Wharton professors Paul Green and Abba Krieger.
The companies that have approached PenNetWorks have mainly asked for advice in developing their startups as opposed to funding. Both Goldstein and Chief Operating Officer Craig Markovitz emphasized the advising and coaching role of PenNetWorks over its ability to provide equipment and facilities.
Currently, PenNetWorks is housed at 3535 Market St. Within a couple of months, it should be moved to the Left Bank complex at 31st and Market streets. The University plans to have that end of campus "thought of as the cutting edge of technology," as Goldstein puts it, co-locating P2B, PenNetWorks and the Center for Transfer of Technology in the new building.
Even with the downturn of the economy, Markovitz remains confident in the purpose of PenNetWorks and its startups.
"Good ideas and companies are still getting funded and progressing through different milestones of business," Markovitz said. "We see the reality and are carefully crafting development plans for our companies to put them in the best position possible. We are very aware that the volume and velocity of venture capitals have gone down."
But Markovitz added that the mission of PenNetWorks will continue to be fulfilled.
"Our mission is to promote entrepreneurship and add value," he said. "We have a robust pipeline of ideas. We're going to keep doing our thing."
