Ted Liberti, CCO and co-founder of BioMagnetic Solutions was no stranger to Ben Franklin Technology Partners when he found himself on the other side of the organization’s mission. Prior to founding BioMagnetic Solutions in 2012, Liberti worked with Ben Franklin Technology Partners for six years, in business development, marketing, and strategy. He then left to start BioMagnetic Solutions, with its cutting-edge ferrofluid technology. Two years later, the company’s initial funding from Johnson & Johnson had begun to run dry — and Liberti knew exactly where to turn.
“We were doing really great things with technology. We were giving jobs to young engineers and scientists. We really needed that funding as we figured out what we were going to do,” described Liberti.
Ben Franklin Technology Partners invested $400,000 in BioMagnetic Solutions, starting what has become a long and fruitful relationship between the two parties.
“It was impressive to be on the other side of [things],” said Liberti, “being a funded company versus being part of the group that decides who should get funded… The money is definitely helpful…but what’s really of value is the expertise [Ben Franklin] can lend, and their contacts.”
Through the Ben Franklin of Central and Northern PA office in State College, BioMagnetic Solutions was connected to the entire Ben Franklin ecosystem state-wide. Additionally, the company was able to work from a Ben Franklin incubator space in its early days.
Now, it’s far outgrown an incubator and operates from a $10 million, first-of-its-kind facility in Innovation Park, and that positive trajectory only continues. In 2021, BioMagnetic Solutions was acquired by Gamma Biosciences in a multimillion-dollar deal. Most recently, BioMagnetic Solutions hopes to benefit from a newer Ben Franklin offering, a private capital fund only available to program alumni.
“This is really the dream that you want for a Ben Franklin-funded company,” said Liberti. “It’s that they would start small, they would solidify their R&D and technology, and then turn that into really good product development that would be desirable to outside companies. Then, they would go into either manufacturing mode or hand that manufacturing off to an outside entity, but still be growing the company.”
“The years [we received Ben Franklin funding], we could not have bridged [without them]. This is where Ben Franklin is crucial in the ecosystem.”
When asked if BioMagnetic Solutions would be as successful today if not for Ben Franklin Technology Partners, Liberti’s answer is a resounding “no.”
He said, “When the [Johnson & Johnson] money was running out, we knew we had done some great work, but we…hadn’t really tackled how we were going to make a business out of it — and biotech takes ridiculously long. We only became a really viable commercial entity within the last year, so it took us 12 years [to become commercially viable]. How many people can go to the banker and say, ‘I’m going to make pizza, but I’m not going to make any money. I’m going to take a big loan for 12 years and then someday we’ll make pizzas to sell’? That’s the situation we were in… The years [we received Ben Franklin funding], we could not have bridged [without them]. This is where Ben Franklin is crucial in the ecosystem.”
In short, Liberti noted, when support didn’t exist in any other forms, Ben Franklin was there — and the organization continues to give high-potential, promising startups the backing they need to achieve similar levels of success.
Ben Franklin’s Todd Erdley, Central Region Director and Portfolio Manager, added, “Ben Franklin Technology Partners helps ensure potentially world-changing startups like BioMagnetic Solutions have a chance to realize that potential, without the traditional startup hurdles standing in the way. Then, once they’ve found their footing, so many — again, just like BioMagnetic Solutions — have chosen to remain in Happy Valley, where they continue to pay it forward and benefit the local startup ecosystem and workforce. Learn more about Ben Franklin Technology Partners at https://cnp.benfranklin.org/.
Read related story – How Happy Valley Won a Biotech Facility Over “Cellicon” Valley.
