Friday Q&A: Dan McKinney of NextStage Capital

Forget the latest investment trends, NextStage Capital will do what it wants, thank you very much.

The firm was founded by Rob Adams and Dan McKinney -two ex-Safeguard Scientifics employees – and Terry Williams, a former recruiter during the post-dotcom boom year of 2003. Then, most investors were running away from early stage technology investment.

“There can be opportunity when people are fleeing markets,” says McKinney,  a managing partner.

It  firm has invested in 12 companies with four exits, mostly in the mid-atlantic region going as far west as to Pittsburgh. However, since its founding the firm has taken pride in being the contrarian, and has not made any new investments in 2010, choosing instead to reinvest its dollars in current portfolio companies.

After the jump, McKinney promises us that we will be hearing a lot from NextStage in the coming months and gives his take on the age-old debate about whether Philly needs more investment dollars.

Read more

VC Roundup: Robin Hood moves, BrainRewards raises cash

Welcome to the VC Round-up, where we’ll parse through venture capital news related to Philadelphia-based private equity firms and the companies they fund. Subscribe to the roundup as an email newsletter. If you have any VC-related news to pass along to us, please drop us a line.

DEFINITE READS

In case you missed it last week, we reviewed all of the 14 companies in DreamIt Ventures. The companies will be showing off their summer’s work on August 11th at Demo Day.

Robin Hood Ventures has moved into the University City Science Center. While the angel investing group has been in the Science Center since May, the group just released the news late last week. In an email to Technically Philly, Executive Director Ellen Weber said that the group made the move to be closer to entrepreneurs. Life Science investor BioAdvance also joined the Science Center.

MIGHT BE WORTH YOUR TIME

Wallingford-based educational gaming company BrainRewards is raising $750,000, according to SEC filings.

Edison Ventures completed its $5 million investment in Blue Cod Technologies, a Massachusetts-based insurance technology company.

Mt. Laurel-based Jumpstart has invested $500,000 in ConnectYard, a company that provides communication tools for students and teachers.

GIVE A GLANCE

Our good friend Joey D. wonders if NuPathe’s IPO will suffer the same fate as other Safeguard Scientifics IPO offerings. In the meantime, Safeguard announced that its earnings are growing.

Cross Atlantic Capital Partners has invested $4 million in Health Market Science, a provider of healthcare data technology.

Venture Capital news site thefunded.com has listed First Round Capital as the fourth-best VC firm in the country.

Friday Q&A: Kevin Kemmerer of Safeguard Scientifics

Updated: Corrected numbers, general edits.

Of the many investment firms in Philadelphia, there is no one quite like Safeguard Scientifics.

In Internet years the company is ancient. Founded in 1953,  one of its early investments was Jerrold Electronics, a company that eventually saw its cable operations bought out by Ralph Roberts to become a little company named “Comcast.” Since then, the company has been a staple of the local investment community surviving the Web 1.0 days to emerge stronger than ever. Since 2006, Safeguard has invested $175 million.

While most firms receive money from private individuals with tight strings attached,  Safeguard is one of the small handful of firms to be publicly traded. Being publicly traded allows the company to be much more patient with its 17 partner companies, avoiding situations like the recent Zappos deal where the company’s investors forced it to sell to Amazon.

But Safeguard is most proud of what it calls its “operating platform”: a series of legal, administrative and operational services to help its investments quickly grow revenue.

We chatted with Kevin Kemmerer, EVP and managing director of Safeguard’s technology group about investing locally, the company’s much-respected “operating platform” and what entrepreneurs can do to get Safeguard’s attention.

Read more

VC Roundup: Safeguard is all over the place, NuPathe goes for an IPO

Edit: Removed old Safeguard news.

Welcome to the VC Round-up, where we’ll parse through venture capital news related to Philadelphia-based private equity firms and the companies they fund. Subscribe to the roundup as an email newsletter. If you have any VC-related news to pass along to us, please drop us a line.

MUST READS

MentorTech Ventures has led a $1.1 million Series A round for SeniorHomes.com, a site that helps people search for nursing homes and similar housing. MentorTech primarily invests in companies with founders and senior staff that have some connection to the University of Pennsylvania. CEO Chris Rodde went to Wharton and subsequently wrote a post on TechFlash about raising the cash.

NuPathe, the pharma company focusing primarily on drugs that are absorbed through the skin, continues its quest to take over the world by announcing an IPO. See our previous coverage here including an interview with CEO Jane Hollingsworth.

Read more

VC Roundup: DreamIt kicks off, BFTP gets busy

Welcome to the VC Round-up, where we’ll parse through venture capital news related to Philadelphia-based private equity firms and the companies they fund. Subscribe to the roundup as an email newsletter. If you have any VC-related news to pass along to us, please drop us a line.

DEFINITE READS

Technically Philly was able to stop in to see half of DreamIt Ventures’ kick off weekend at the University City Science Center last Friday where local media, entrepreneurs and participating companies got a chance to network and prepare for the incubator’s third class. It was the first time that the participating companies were able to see the space and meet one another. New this year is Brooklyn-based edication investor Startl’s involvement. The group partnered with DreamIt to incubate five of Dreamit’s 15 participating companies.

In opening remarks, co-founder Mike Levinson said that DreamIt received over 350 applications and the tech world considers DreamIt as “one of the top three incubators in the country.”

Also new to this year’s class, Kerry Rupp will be replacing Steve Barsh, who is focusing on his new startup, Packlate.

The event was rounded out by Deputy Mayor of Economic Development Alan Greenberger bragging about Philly, Science Center CEO Steve Tang welcoming the businesses to the space and Click Equations CEO Lucinda Holt discussing the difference between CEOs and Founders.

….

Ben Franklin Technology Partners has been busy in recent weeks. The southeast group invested $800,000 in five (mostly pharma) companies last month, but then shelled out $2 million for eight more recently. The group also released its annual report and the finalists for the New Energy Idea Contest and plans to announce a winner June 17th.

Read more

VC Roundup: Wharton competes and the city gets $25 million

.

Welcome to the VC Round-up, where we’ll parse through venture capital news related to Philadelphia-based private equity firms and the companies they fund. Subscribe to the roundup as an email newsletter. If you have any VC-related news to pass along to us, please drop us a line.

DEFINITE READS

The New York Times was all over the Wharton Business Plan Competition this year. The Old Gray Lady said that life sciences were all the rage, though business services company Cortical Concepts won the $20,000 grand prize. As we know, $20,000 to a Wharton student is like $100 to the rest of us.

DreamIt Ventures is a week away from its “kickoff weekend.” But a few lawyer-types are jumping the gun tonight with the Law Firm Kickoff. The free event plans to explore how law firms will work with the incubated companies.

Read more

VC Roundup: Diapers.com takes over the world, DreamIt’s largest class ever

.

Updated: Clarified Osage Ventures partnerships.

Welcome to the VC Round-up, where we’ll parse through venture capital news related to Philadelphia-based private equity firms and the companies they fund. Subscribe to the roundup as an email newsletter. If you have any VC-related news to pass along to us, please drop us a line.

DEFINITE READS

PBJ reports that this year’s DreamIt Ventures class of 15 is its largest yet, thanks to a partnership with Brooklyn-based Startl. Five of the fifteen were from the New York fund. Last year Dreamit had 11 companies. Our buddy Peter Key also writes that Steve Barsh will be leaving the incubator to focus on Packlate.com. In a recent interview with Technically Philly, Barsh said he plans on “dedicating ten percent” to the incubator.

Diapers.com is having a hell of a month. The company just finished raising its Series E (!) round to help speed along its already-breakneck growth. The company, originally backed by MentorTech Ventures, is the largest online provider of baby care items in the country. The company has also recently received press in Forbes, TechCrunch and the Financial Times. Fellas, you can now add Technically Philly to your list. You’re welcome.

Read more

VC Roundup: Joe Biden visits BFTP

Welcome to the VC Round-up, where we’ll parse through venture capital news related to Philadelphia-based private equity firms and the companies they fund. Subscribe to the roundup as an email newsletter. If you have any VC-related news to pass along to us, please drop us a line.

DEFINITE READS

Vice President Joe Biden visited the northeast branch of Ben Franklin Technology Partners last week. The Scranton native spoke at BFTP’s new clean tech campus in Bethlehem which received federal funds as part of the stimulus package. Be sure to read the Morning Call’s excellent write up.

Read more

Venture Capital: BFTP wants to give you money, a new fund in Bala Cynwyd?

Welcome to the VC Round-up, where we’ll parse through venture capital news related to Philadelphia-based private equity firms and the companies they fund. Subscribe to the roundup as an email newsletter. If you have any VC-related news to pass along to us, please drop us a line.

Programming note: We skipped last week due to some technical troubles.

Update: looks like Franklin Park isn’t a straight VC fund.

DEFINITE READS

Ben Franklin Technology Partners is looking to award cash to clean energy companies that employ less than 500 people. The money comes from the federal government and companies must match the funds, which can be as high as $50,000. A notice of intent to apply must be filed by April 7th.

(see update, above) According to SEC filings, Bala Cynwyd-based Franklin Park Venture Fund has raised $50 million. We couldn’t find evidence of preexisting activity from these guys, so drop a comment a if you know anything.

Read more

VC Roundup: Quaker gets aroused, Safeguard swaps debt

Welcome to the VC Round-up, where we’ll parse through venture capital news related to Philadelphia-based private equity firms and the companies they fund. Subscribe to the roundup as an email newsletter. If you have any VC-related news to pass along to us, please drop us a line.

DEFINITE READS

As we tweeted yesterday, Fast Company interviewed Josh Kopelman about why people should start a company in Philly. In the interview Kopelman points to local universities and the low cost of living as prime reasons people should set up shop here. The article came after the local community lobbied the magazine to be included in its series.

According to a press release, Quaker BioVentures has teamed up with a student-run VC firm to invest in Semprae Laboratories. The company makes “arousal” oils. Yes, we’re serious.

Read more