Spurring Innovation: Shapiro Administration Invests $2 Million to Support Early-Stage Life Science Tech Companies in Pennsylvania

Neovate will invest in start-up MedTech and BioPharma companies in the Pittsburgh area.

Governor Josh Shapiro’s 2025-26 budget proposal includes a new $50 million investment to create the PA Innovation program to further position the Commonwealth as an economic development and innovation leader. 

Harrisburg, PA – Today, Department of Community and Economic Development (DCED) Secretary Rick Siger announced that $2 million was awarded through the Ben Franklin Technology Development Authority (BFTDA) to Neovate Life Sciences GP I, LLC (Neovate) a venture capital firm that will make investments in early-stage life science companies that are focused in the areas of MedTech and BioPharma in Pennsylvania.

This investment through the BFTDA will help advance the competitiveness of the Commonwealth’s companies and universities in the global economy. Valued at nearly $50 billion, Pennsylvania’s life sciences industry thrives on the foundation of world-class research & development institutions, top-tier universities, and cutting-edge incubators. The University of Pennsylvania, University of Pittsburgh, and Pennsylvania State University all spend over $1 billion annually on groundbreaking research and development – and taken together Pennsylvania’s colleges and universities rank 4th in the nation in life sciences research and development spending. In the last five years, Pennsylvania companies received 10,783 new life sciences patents – that’s the 4th highest number in the country. And with organizations like PA Life Sciences Greenhouses and Ben Franklin Technology Partners, we continue to build success for the more than 3,000 life science establishments operating throughout the Commonwealth.

Since January 2023, Governor Josh Shapiro has announced more than $3.7 billion in new private sector investment in Pennsylvania as a direct result of his Administration’s work.

“The Shapiro Administration is laser-focused on supporting our important life sciences industry, and this investment in Neovate underscores that commitment,” said Secretary Siger. “Neovate will finance start-up life sciences companies in the Commonwealth that will create opportunities for growth, innovation, and jobs in our communities. Governor Shapiro is doubling down on our commitment to life sciences even further by calling for a new, $50 million innovation fund in his proposed 2025-26 budget to support more businesses like those we’re investing in today.”

Neovate, which has offices in Pittsburgh, was co-founded by Mike Green and Matt Harbaugh. The venture capital firm will focus on early-stage companies in the medical device space.

This award was made possible through BFTDA’s Venture Investment Program. As one of the oldest and most emulated state technology development programs in the nation, the BFTDA was established to promote an entrepreneurial business environment, advance technology innovation, and create a technology-ready workforce.

Life sciences is one of the five key industries of Pennsylvania’s 10-year economic development strategy, and a major focus of the Shapiro Administration. Governor Shapiro recently announced a $1.72 million investment by the Commonwealth in First Ascent Biomedical’s expansion at Gannon University. The new, 5,000-square-foot space will include offices and a Clinical Laboratory Improvement Amendments (CLIA) certified laboratory with state-of-the-art robotic technology capable of processing tissue samples annually for thousands of patients with recurring cancer.

The Shapiro Administration also recently helped break ground on GSK’s expansion in Marietta. The global biopharma company is investing $800 million into the project, which will create more than 200, new high paying jobs and retain 4,622 employees. The Commonwealth invested $21 million towards the expansion.

Governor Shapiro’s 2025-26 budget proposal calls for more than $160 million in total new and expanded investments to implement the Economic Development Strategy and increase our competitiveness, strengthen communities, and address critical housing needs.

Fostering innovation is a key component of Governor Shapiro’s 2025-26 budget proposal, which includes:

• $50 million for the new PA Innovation program, including a one-time $30 million initiative to spur life sciences job growth and $20 million to provide annual funding to support large-scale innovation. The Shapiro Administration was recently at Atlas Biotech in State College to highlight this proposed funding.
• $10 million for AdvancePA tax credits to create high quality jobs across Pennsylvania
• $12.5 million dedicated to WEDnetPA to expand our workforce and close critical workforce gaps
• $2 million for the creation of Career Connect to build internships at Pennsylvania companies

To learn more about the BFTDA or DCED, visit the DCED website, and be sure to stay up-to-date with all of our agency news on Facebook, X, and LinkedIn.

MEDIA CONTACT:
Governor’s Office, ra-gvgovpress@pa.gov, 717.783.1116
DCED, dcedpress@pa.gov

# # #