Erie Insurance and Ben Franklin join forces for new investment fund
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Greg Wohlford, Erie Times-News
- Erie Insurance and Ben Franklin Technology Partners have created a new investment fund.
- Ben Franklin and Erie Insurance have each contributed $250,000 to launch the fund.
- The fund is intended exclusively for Erie County businesses.
The genius idea scribbled on a napkin can turn out to be the easy part of launching a new business.
Often, the harder part “is finding the fuel to get the idea off the ground,” or, in some cases, to grow the business from one level to the next, said Brian Slawin, director and portfolio manager for Ben Franklin Technology Partners.
A new cooperative effort between Ben Franklin and Erie Insurance is designed to help.
Erie’s largest employer and Ben Franklin, a statewide initiative funded by the state Department of Community and Economic Development, announced on Sept. 30 the creation of the Erie Revitalization Investment Fund.
Funded initially with $500,000 — $250,000 each from Ben Franklin and Erie Insurance — the initiative is designed to drive innovation, support local entrepreneurs and foster economic growth in Erie County.
Slawin said he’s already looking at a number of companies that might merit investments. In most cases, those investments would take the form of loans or convertible notes, a loan that could be swapped for an ownership stake in the company.
Slawin said he anticipates the fund will launch with investments of between $50,000 and $150,000 in between five and 15 companies.
He expects there will be money for future investments as borrowers pay back their loans.
Slawin said it’s also possible that Ben Franklin and Erie Insurance might eventually add to their investments.
Fund is focused exclusively on Erie County investments
Unlike some other Ben Franklin investments that have been made across the state, this joint venture is designed to benefit Erie County.
“This money is focusing on creating family and life-sustaining jobs and growth that stays here in Erie County,” Slawin said.
There is no wiggle room on that point.
“There won’t be an option,” he said. “If you take the money the jobs stay here.”
How did the idea for the fund take root?
Slawin said Ben Franklin has been in conversations with Erie Insurance for some time. The idea for the fund, however, began with an email from Christy Blashock, corporate sustainability & community development officer for Erie Insurance.
“Erie Insurance is proud to provide local businesses with another potential funding source as they work to grow and scale right here in our hometown,” Blashock said in a statement. “The Erie Revitalization Investment Fund is about investing in people, ideas and a shared future.”
Money isn’t the only benefit of the fund, which is being managed by Ben Franklin Technology Partners.
Participating companies will have access to Ben Franklin staff members who can mentor business owners, offering guidance on financial planning and growth management.
Slawin is confident that the new fund can duplicate the success of other Ben Frankling Technology Partners investments.
“I think we have proven time and time again if you invest a dollar into the Ben Franklin program, four dollars gets created,” he said.
“We are really filling the gap between the ideas and the resources it takes to commercialize the ideas,” he said.
Slawin said he feels confident that the new pool of money and Ben Franklin expertise will make for a winning combination.
“This isn’t just a fund with money,” he said. “It’s a blueprint for how Erie can lead the Commonwealth with growth and job creation.”
Contact Jim Martin at [email protected].
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