Pittsburgh Life Sciences Greenhouse Makes Significant Reductions Due to Uncertain Funding
PITTSBURGH, June 14, 2013 /PRNewswire/ — The Pittsburgh Life Sciences Greenhouse (PLSG) today announced a reduction in staff and levels of investment that were necessitated by delays in portfolio company exits caused primarily by the current overall investment climate and the uncertainty of state funding.
PLSG President and CEO, John W. Manzetti said, “As the region’s only pure life sciences investment firm, the actions taken this week, which were approved by the PLSG Board of Directors, were necessary to protect the future of both our base economic development activities and our investments in both the PLSG and PLSG Accelerator Fund companies.
“These actions will remove expenses related to community and company support and services but still enable us to focus on investments. As our strong portfolio of companies achieve their awaited exits, the PLSG will return to historic levels of annual investment. We have centered our focus on the PLSG’s premier Executive Program and have protected our ability to invest modestly until these returns are realized. Our experienced and highly-focused investment team remains passionate and committed to the growth of the region’s important life sciences sector.”
About Pittsburgh Life Sciences Greenhouse (PLSG) (www.plsg.com)
The PLSG invests in and supports the growth of biosciences companies in western Pennsylvania. PLSG has a track record of excellence when it comes to attracting and growing life sciences companies in the region. Since its inception in 2001, PLSG has assisted more than 400 life sciences companies and has helped create or retain nearly 6,000 jobs in western Pennsylvania. Thirty-four companies have been provided with office or laboratory space and 13 have been relocated to Pittsburgh from outside of the region. In addition, the PLSG has invested $18.9 million in 76 companies which has leveraged nearly $900 million in additional capital to the region.
About PLSG Accelerator Fund (www.acceleratorfund.com )
The PLSG Accelerator Fund I, which had its final closing in December, 2012 at $8.1 million, currently is fully invested in eight portfolio companies. The Accelerator Fund provides regional life sciences companies with venture capital financing, which is the next step beyond capital provided by economic development organizations; friends and family; and angel investors. The Accelerator Fund is building a portfolio of early-stage life sciences investments, primarily located in western Pennsylvania and spread across several life sciences investments, primarily located in western Pennsylvania and spread across several life sciences sectors including medical devices, diagnostics, therapeutics, healthcare information technology and biotechnology tools. The value proposition of the Fund is at least two-fold: (1) PLSG executive manage the Fund, affording investors with quality of personnel that likely would be otherwise available only through significantly larger funds; (2) only companies that have already performed successfully using PLSG investments and programs are considered for Fund investment.
SOURCE Pittsburgh Life Sciences Greenhouse