Ben Franklin Technology Partners Challenge Grant

Ben Franklin Technology Partners Challenge Grant — Investment

Invests in Pennsylvania technology companies through regional partners, using convertible capital structures for growth prototyping.

The Ben Franklin Technology Partners Challenge Grant is a Pennsylvania state appropriation administered by the Department of Community and Economic Development (DCED) through the Ben Franklin Technology Development Authority (BFTDA), which deploys capital through four independently incorporated regional organizations across Pennsylvania. The DCED, led by Secretary Rick Siger under Governor Josh Shapiro, channels the annual state budget appropriation to the four regional BFTPs, which then invest directly in Pennsylvania technology companies, startups, established manufacturers, and higher-education commercialization efforts. The four regional partners are BFTP of Southeastern PA covering Philadelphia and four collar counties; BFTP of Northeastern PA serving the Lehigh Valley and 21 additional counties; BFTP of Central and Northern PA covering 32 counties; and Innovation Works serving southwestern Pennsylvania. At the company level, capital is structured as convertible debt with equity warrants — not a traditional non-dilutive grant — and founders should account for this in cap-table planning. Typical check sizes run $50,000 to $500,000 per company. No statewide deadline exists; each regional BFTP accepts applications year-round through its own intake and investment committee process. Eligible uses include hiring, prototype development, software, beta testing, and sales and marketing; land, buildings, machinery, equipment, and inventory are generally excluded. Eligibility extends to for-profit companies, nonprofits, universities, and research organizations that maintain majority Pennsylvania operations; individuals are excluded. Founders apply directly to the regional BFTP covering their Pennsylvania county — not to DCED — via that partner's own intake process accessible through benfranklin.org. Each regional BFTP also provides business and technical support services alongside capital, making the program a combination of investment and advisory engagement.