UNIVERSITY PARK, Pa. — The Propel Penn State Seed Fund has announced its first investment, a $50,000 convertible note investment in X‑Hab 3D Inc., an innovative startup working at the forefront of large‑scale 3D‑printed infrastructure and automated construction technologies.
“This investment marks an important milestone for the Propel Penn State Seed Fund and the student-driven educational programming that enables the fund’s investment activity,” said Michael Zaydon, manager and administrator of the Propel Penn State Seed Fund.
The Propel Penn State Seed Fund is made possible through ongoing philanthropic contributions and corporate sponsorships. Gifts to the fund directly support student-led experiential learning as well as early-stage dilutive investment in Penn State-affiliated startups.
“The seed fund was built to create high-impact learning experiences while advancing promising startups,” said Zaydon. “Philanthropic support is what enables both dimensions of this work.”
Part of a larger $4 million seed financing round, this investment will support X-Hab’s next phase in implementing its go-to-market strategy after evidencing early traction and successful proof-of-concept builds using its proprietary mobile 3D Concrete Printing (3DCP) System.
“Propel’s investment reflects careful vetting and institutional confidence in our platform and growth strategy,” said Bruce Kraselsky, founder and CEO of X-Hab 3D. “That validation provides meaningful credibility as we engage with additional investors and partners.”
The first investment cycle for the Propel Penn State Seed Fund this past fall was competitive, with 40 companies applying for investment consideration. Eight companies were invited to pitch to student analysts. Four companies were selected by students for detailed due diligence. Ultimately, the fund's student analysts determined that X‑Hab 3D represented the most compelling fit for the fund's first investment because of both the company’s market opportunity and the founder’s alignment with Penn State’s educational mission.
Students participating in the Venture Capital Investment Practicum (VCIP) as due diligence analysts, are responsible for assembling the research and recommendations that inform each investment decision. Analysts shared that the founder’s willingness to teach was essential to their learning experience.
“One of the most impactful aspects of the experience was our direct engagement with the founder,” said Renee Agarwal, an economics major who will be an analytics intern at OneMain Financial this summer. “The most interesting aspect to me was [Bruce’s] degree of transparency and enthusiasm. It provided us with a better understanding of the vision and the operational challenges involved in scaling a startup.”
When considering X‑Hab 3D as an investment target, student analysts reviewed materials, conducted interviews, examined trends in large‑scale 3D printing, visited X-Hab’s facilities in State College and a local proof-of-concept build in Boalsburg, and presented their recommendation to Propel Penn State Seed Fund leadership, Smeal faculty and alumni advisers. For many students, this was their first time applying classroom concepts to a real investment decision.
“In my finance and accounting classes, I learned about investing and diligence in a simulated, risk-free setting,” said Noah Rock, a senior finance and accounting major who will be joining Barclays as a risk analyst in New York City after graduation. “However, what I took away most from [this experience] was applying these concepts in a real-world situation for real companies, where I held the significant responsibility of a real investor to perform a fair and logical investment analysis and make recommendations to the best of my ability.”
It was not only the students who learned and benefited from the due diligence process. Founders whose companies participated in the due diligence process commented that student perspectives enhanced their understanding of what investors are looking for before they invest. Participating in the process helped founders improve their own messaging and processes regardless of whether they receive investment funding from the seed fund, they said.
“What impressed me most as a founder was [the students’] level of preparation and intellectual maturity, combined with fresh thinking that reflects a new generation of leaders,” Kraselsky said. “That perspective is incredibly valuable for a growing startup — it pushes you to see your company through a wider lens.”
In addition to financial support, the Propel Penn State Seed Fund aims to connect its portfolio companies with mentors, students and resources across Smeal, the University, and the Penn State alumni network. As the seed fund and VCIP program scales, the model is designed to accelerate the success of its portfolio companies by surrounding them with strategic support.
“For an early-stage company, access to the Penn State ecosystem can accelerate progress in meaningful ways,” said Zaydon. “Within Smeal, we are well positioned to unlock the value of our alumni network, faculty experts, motivated students, cross-college partnerships, and innovative programs to support our portfolio companies.”
For X‑Hab 3D, investment from the Propel Penn State Seed Fund is just the latest form of support and engagement from the Smeal and Penn State ecosystems, including: research capabilities, engagement with student consultants at Smeal and prior investment from the Garber Venture Capital Fund.
“This investment is a reaffirmation of the broader value Penn State brings to X-Hab 3D, not just funding, but deep partnership across government R&D, multidisciplinary expertise and world-class facilities,” Kraselsky said. “This ecosystem gives a startup like ours the capability to compete effectively with companies far larger and better financed.”
The Propel Penn State Seed Fund’s first investment comes at an exciting time for Smeal. The college recently announced its new strategic plan to become a top-5 public business school by 2030. The plan includes core priorities including developing innovative new programs, enriching the student experience through experiential learning and driving external engagement and philanthropy. The seed fund and VCIP are hallmark programs administered by Smeal’s Farrell Center for Corporate Innovation and Entrepreneurship, which are closely aligned with the “Top 5 in 5” strategic plan.