Start-ups to get $700k, one for a needle-free blood drawing device

Philadelphia's start-up fund, established last year to support local fledgling companies, will invest $700,000 in four more start-ups, including one developing a device for needle-free blood drawing.

Velano Vascular, a medical device company started by Wharton graduates, received $400,000 from the fund for a device patented by founders Eric Stone and Pitou Devgon for drawing blood from hospital patients.

The technology works with an IV, so, technically, one needle prick is still involved.

"Almost every hospital inpatient has an IV, and they're wonderful for putting fluid in but not for pulling blood out," said Stone. This technology, not yet FDA approved, would enable blood to be drawn through the IV.

The device could be particularly useful for the elderly, diabetics, and children, said Stone, who was in and out of hospitals with Crohn's disease as a child.

"It's perfect for that 8-year-old at Children's Hospital of Philadelphia who doesn't want to go through it again, who's flailing as his parents try to hold him down," Stone said.

Three other companies will receive $100,000 each, as well as a fourth, not yet identified. They are:

Squareknot, a social network for do-it-yourself aficionados where people can share how-to guides, ideas, and skills.

Tesorio, developer of a personalized cash-flow management program for companies, focusing on early-payment discounts.

VeryApt, a phone app and website combining user reviews and data to deliver personalized apartment recommendations.

The announcement Wednesday came one year after Startup PHL's first investment, $200,000, in a healthy meal-delivery service, Real Food Works.

The $6 million fund is managed by First Round Capital, which invested $3 million, matching $3 million from the Philadelphia Industrial Development Corp., the city's economic-development agency.

"Philadelphia is interested in the start-up world and wishes to promote it," said Alan Greenberger, deputy mayor for economic development. "The goal is to send the message that Philadelphia is a great city for start-ups and to help support the organizations that are supporting entrepreneurs."