Barely a week after unveiling the Business Accelerator Network L.L.C., the Westchester County Association said they have already attracted an additional $25 million in debt financing commitments from Greater Hudson Bank N.A.
To date, the Business Accelerator Network ”“ launched March 8 ”“ has received commitments for $125 million in debt financing and $50 million worth of in-kind services from area firms.
Greater Hudson Bank, based in Middletown, becomes the sixth bank to sign onto the accelerator, joining Provident Bank, The Westchester Bank, Mahopac National Bank, M&T Bank, and Community Mutual Savings Bank.
The WCA hopes to finalize the network”™s format and criteria for selection into the accelerator later this spring and to release its first call for business plans and applications in the fall.
One thing that”™s certain is the Blueprint Accelerator Network will differ from traditional business incubators, said Nicholas Puro, who will head up the network along with Daniel Papes, vice president of global technology services at IBM Corp. and WCA board member.
“One of the major differences is this accelerator is not one space in one building where a bunch of companies come and they share space. It”™s where the space is really specialized for those companies so those companies have an opportunity to really grow,” Puro, managing director of New York City private equity firm e3 Investment Partners, said in an interview.
For example, if a company accepted into the accelerator network specializes in the biotechnology field, Puro and the WCA would hope to locate them near other local biotech companies such as Regeneron Pharmaceuticals Inc. or Acorda Therapeutics Inc.
Puro also highlighted the value of already having in-kind service commitments from various legal, accounting and public relations firms.
“If somebody needs help with a patent, you don”™t want to assign a general law firm ”“ you want to assign a patent law firm. So it”™s those kind of things that will help the companies,” he said.
Also among those companies that have already pledged in-kind services to the accelerator network is RPW Group Inc., a Rye Brook-based commercial real estate developer with properties at locations across the county.
The WCA is still in the process of recruiting additional partners, representatives said at the March 8 news conference where the accelerator was unveiled.
However, the success of the network will ultimately rest with the ability of the WCA and its partners to attract the interest of local venture capital firms, Puro said.
“Part of my role is going to be bringing the venture community into this organization,” he said.
The accelerator”™s primary role will be to facilitate meetings between those businesses that are accepted and the venture capital firms they will seek seed funding from.
The idea is to invite venture capital firms, angel groups and other potential investors to quarterly forums and presentations, in order to expose the accelerator”™s participants to “any potential investors that can help these companies graduate from the accelerator to the next level,” Puro said.
Already, representatives of the accelerator network and the WCA have spoken with more than a dozen venture capital firms, WCA President William M. Mooney said at the unveiling.
The WCA also hopes to involve some of those firms in the design process for the accelerator network itself, to ensure that it contains all of the right components.
“That”™s part of the planning and why we”™re not just starting to take in companies tomorrow or next week,” Puro said. “We really need to organize how we”™re going to set the criteria for the companies. We”™ve got to bring in some early stage venture professionals who are going to be willing to work with the organization to help identify the right companies to bring in.”
