Welcome!

News Feed Item

Investment in Pittsburgh's Tech Companies is Building Momentum According to 5-year Report from Ernst & Young and Innovation Works

Early-stage deals, exits, sector diversity create strong investment climate

PITTSBURGH, MARCH 20, 2014 /PRNewswire/ -- According to the second annual review by Ernst & Young and Innovation Works on regional investment activity, Pittsburgh technology companies continue to outpace national averages in the amount of venture dollars invested in regional companies.  In addition, the diversity of industries raising capital, an improving climate for regional venture funds, and the growing number of successful company exits spell continuing strength for the region's technology companies.  The full report can be found at Building Momentum: Investing in Pittsburgh's technology sector. Rich Lunak, President & CEO of innovation Works, and Lynette Horrell, Managing Partner of Pittsburgh's office of Ernst & Young, will discuss the report at a meeting of the Pittsburgh Venture Capital Association (PVCA) on March 20.

Highlights of the report:

  • In 2013, Pittsburgh attracted over $338 million in venture, angel, strategic partnership and other sources of capital to finance 148 deals
  • Between 2009 and 2013, 34 exits occurred among Pittsburgh technology companies. These exits are valued at more than $3 billion.
  • More than 120 venture firms from around the country fuel our local companies.
  • Pittsburgh ranks 3rd in the number of venture deals per capita compared to similar regions and those that are more active technology hubs.
  • Pittsburgh has a diverse pool of industries attracting capital.  Over the past five years, funding has gone to 249 companies, with the bulk going to these broad sectors:
    • 57% of funded companies are categorized as information technology (enterprise & consumer software, electronics, robotics, telecom & IT infrastructure) 
    • 25% of companies receiving funding were categorized life sciences/healthcare (medical devices, healthcare IT, biotechnology/drug development, healthcare services)
  • Though most venture capital for local deals comes from investors outside the region, the supply of indigenous venture capital is modestly improving. 
  • The combined research budgets at our world-class universities are an unparalleled resource.  Their increasing activities to license, spin-off and commercialize technologies are creating a steady flow of strong, new companies and top-tier talent. 

"When we look at the full investment picture of our region, we see a robust region that is gaining momentum over the past five years in terms of seed-stage investment, exits and the diversity of sectors being funded," said Lynette Horrell, Managing Partner, Pittsburgh Office, Ernst & Young LLP.  "The fact that growth is occurring on multiple fronts is encouraging.  There are also areas that have even greater potential to tap, such as our world-class research universities which are spinning out technologies and companies at an increasing pace, which makes Pittsburgh poised for even greater investment," Ms. Horrell continued.

Rich Lunak, President & CEO of Innovation Works, one of the nation's most active seed-stage investors, said, "When we benchmark Pittsburgh against the kinds of communities we look up to, we are making great strides to reach the high levels of entrepreneurial activity we want to foster.  Per capita, Pittsburgh is third for venture deals among similar and 'aspirational' regions."  Mr. Lunak continued, "This shows that our great companies are able to attract the capital they need to grow and the roster of investors in our local companies is a Who's Who of top investment firms from across the country."

For the full "Building Momentum" report from Ernst & Young and Innovation Works, go to: http://www.innovationworks.org/Portals/1/documents/Building momentum.pdf

About Ernst & Young:
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 167,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.

For more information, please visit ey.com.

About Innovation Works:
Innovation Works invests in and provides business assistance for high-potential seed- and early-stage technology companies in the Pittsburgh region.  Part of the Ben Franklin Technology Partner network which pioneered technology-based economic development, Innovation Works is the single largest investor in seed-stage companies in the Pittsburgh region and is in the top ten most active seed- and early-stage investors in the country (according to national rankings).  Innovation Works is an initiative of the PA Department of Community and Economic Development and is funded by the Ben Franklin Technology Development Authority. www.innovationworks.org

SOURCE Innovation Works, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
SYS-CON Events announced today that A&I Solutions has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 1999, A&I Solutions is a leading information technology (IT) software and services provider focusing on best-in-class enterprise solutions. By partnering with industry leaders in technology, A&I assures customers high performance levels across all IT environments including: mai...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
SYS-CON Events announced today that EARP will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "We are a software house, so we perfectly understand challenges that other software houses face in their projects. We can augment a team, that will work with the same standards and processes as our partners' internal teams. Our teams will deliver the same quality within the required time and budget just as our partn...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that Tappest will exhibit MooseFS at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. MooseFS is a breakthrough concept in the storage industry. It allows you to secure stored data with either duplication or erasure coding using any server. The newest – 4.0 version of the software enables users to maintain the redundancy level with even 50% less hard drive space required. The software func...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
SYS-CON Events announced today that Systena America will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.