VENTURE CAPITAL $

$
VENTURE CAPITAL
Aggregated venture capital activity is another important
indicator of regional economic vitality. This section
illustrates venture capital investments in southwestern
Pennsylvania companies across five industry clusters.
AGGREGATED VENTURE CAPITAL ACTIVITY
PITTSBURGH MSA 2012-2013*
HIGHLIGHTS:
> In the past two years, 61 small businesses in the Pittsburgh MSA raised more than $343 million
in 70 venture rounds. Information Technology-related industries raised the largest amount of
investment during the two-year period ($127 million), followed by: Healthcare ($126 million),
Consumer Goods & Services ($48 million), Business and Financial Services ($40 million), and
Industrial Goods and Materials ($3 million).
> In February 2013, the National Venture Capital Association named Pittsburgh as one of the
top 15 cities in America for startups. The organization cited 30 years of progress and a strong
ecosystem, including the impact of Carnegie Mellon University and Ben Franklin Technology
Development Authority.
Businesses
Investors
Rounds
Total Investment
2012-13
61
78
70
$343 Million
2011-12
77
77 (reported)
82
$393 Million
*Data from Dow Jones VentureSource
TOTAL INVESTMENT ($ MILLIONS)
40
35
30
25
20
15
10
100
95
90
85
80
75
45
0
CONSUMER GOODS & SERVICES
105
120
115
110
INFORMATION TECHNOLOGY
HEALTHCARE INDUSTRY SEGMENT
125
INDUSTRIAL GOODS & MATERIALS
5
BUSINESS & FINANCIAL SERVICES
PITTSBURGH MSA 2012–13
VENTURE CAPITAL ACTIVITY
TOTAL VENTURE CAPITAL INVESTMENT
70
65
60
55
50
TOP VENTURE CAPITAL DEALS
AQUION ENERGY
COHERA MEDICAL
AVERE SYSTEMS
ALUNG TECHNOLOGIES
KNOPP BIOSCIENCES
BUSINESS AND FINANCIAL SERVICES – $40.37m
HIGHLIGHTS:
Business and Financial
Services Component
Industries:
- Business and Support
Services
- Construction and
Civil Engineering
- Financial Institutions
and Services
> In the two-year period, 10 small businesses raised $40.37 million through 13 venture rounds.
Notable strategic investors such as Salesforce.com, and nationally recognized investment leaders
Rincon Venture Partners and ff Ventures supported this industry segment.
2012-13
10
14 (reported)
13
$40.37 Million
2011-12
9
10 (reported)
11
$94 Million
BUSINESSES:
Atmosferiq
Cardeeo Inc.
Civic Science
Hireku (Resumator)
PoweredAnalytics
INVESTORS:
RedZone Robotics
SnapRetail
Thread
Tristar Investors
Wonday
Adams Capital
Management
Birchmere Ventures
ff Venture Capital
Fourwinds Capital
Management
Idea Foundry
Innovation Works
New Atlantic
Ventures
Rincon Venture
Partners
Salesforce.com
Smithfield Trust
Undisclosed Venture
Investors
HEALTHCARE INDUSTRY SEGMENT – $125.76m
HIGHLIGHTS:
Healthcare Cluster
Component Industries:
- Biopharmaceuticals
- Healthcare Systems
- Medical Devices and
Equipment
- Medical Software and
Information Technology
> In the two-year period, 18 regional businesses raised more than $125 million
through 18 venture rounds.
Businesses
Investors
Rounds
Total Investment
2012-13
18
35 (reported)
18
$125.76 Million
2011-12
25
33 (reported)
26
$136 Million
BUSINESSES:
Aethon Inc.
ActivAided Orthotics
Accel Diagnostics
ALung Technologies
Inc.
Applied Isotope Inc.
BodyMedia Inc.
Carmell Therapeutics
Cernostics
Cereve
Cohera Medical
INVESTORS:
Cognition
Therapeutics
Complexa
Foundation Radiology
Hometown Oxygen
Pittsburgh
Knopp Neurosciences
Precision
Therapeutics
Stemnion
TreatSpace
Allos Ventures
Arboretum Ventures
Ariel Savannah Angel
Partners
Ascension Ventures
Birchmere Ventures
Blue Tree Allied
Angels
Bradford Capital
Partners
Comcast Ventures
DQE Enterprises
Draper Triangle
Ventures
Enhanced Capital
Partners
ePlanet Capital
InCube Ventures
Individual Investors
Innovation Works
Medicis
Mitsui & Co.
Nexus Medical
Partners
Novitas Capital
Oxford Finance
Corporation
Pacific Venture Group
CONSUMER GOODS AND SERVICES – $47.57m
HIGHLIGHTS:
Consumer Goods and
Services Component
Industries:
- Consumer Information
Services
- Media and Content
- Retailers
- Food and Beverage
- Household and
Office Goods
- Personal Goods
> In the two-year period, nine Pittsburgh-area small businesses raised nearly $48 million
through 11 venture rounds.
Businesses
Investors
Rounds
Total Investment
2012-13
9
15 (reported)
11
$47.57 Million
2011-12
10
14 (reported)
13
$40.3 Million
BUSINESSES:
2124 Brewing
Company
AutoRef Inc.
Duolingo
FutureDerm
ModCloth
INVESTORS:
The College People
LLC
Thorley Industries
Tunessence Inc
WebKite
Accel Partners
A-Grade Investments
First Round Capital
Floodgate
Harrison Metal
Capital
Innovation Works
Individual Investors
New Enterprise
Associates
Norwest Venture
Partners
T-Venture Holdings
Union Square
Ventures
INFORMATION TECHNOLOGY – $127.05m
HIGHLIGHTS:
Information Technology
Component Industries:
- Consumer Electronics
- Data Storage
- Electronic Components/
Devices
- Electronics and
Computer Hardware
- Semiconductors
- Software
> In the two-year period, 21 Pittsburgh businesses secured more than $127 million in
financing through 25 venture rounds. Software firms represented more than half of the
venture rounds during the period.
Businesses
Investors
Rounds
Total Investment
2012-13
21
33 (reported)
25
$127.05 Million
2011-12
19
22 (reported)
20
$63 Million
BUSINESSES:
Accipiter Systems
Aquion Energy
Avere Systems Inc
Branding Brand LLC
Crystalplex Corp.
HeadRight Games
LLC
Hyperactive
Technologies
Medallion Analytics
Software
Metis Secure
Solutions
NoWait Inc.
Kextil
INVESTORS:
NoWait Inc.
RessQ Technologies
RoommateFit Inc.
Safaba Translation
Services
SolePower
The Efficiency
Network
Think Through
Learning
TowerCare
Technologies
Voci Technologies
Inc.
Wombat Security
Technologies
Adams Capital
Management
Advanced Technology
Ventures
Ben Franklin
Technology Partners,
Southeastern PA
Birchmere Ventures
BlueTree Allied
Angels
Bright Capital
Carnegie Mellon
University
Crunch Fund
Eastern Advisors
Capital Group LLC
Foundation Capital
Gentry Ventures
Individual Investors
Innovation Works
Insight Venture
Partners
Kleiner Perkins
Lightspeed Venture
Partners
Menlo Ventures
Newlin Investment
Company
Norwest Venture
Partners
Osage Partners
Pittsburgh Equity
Partners
Sand Hill Angels
SFJ Ventures
Tenaya Capital Inc.
Undiclosed Venture
Investors
INDUSTRIAL GOODS AND MATERIALS – $2.93m
HIGHLIGHTS:
Industrial Goods and
Materials Component
Industries:
- Materials and
Chemicals
> With a deep history in the advanced materials industry, the region saw three small businesses
secure nearly $3 million in financing through three venture rounds.
Businesses
Investors
Rounds
Total Investment
2012-13
3
4 (reported)
3
$2.93 Million
2011-12
5
2 (reported)
5
$16 Million
BUSINESSES:
INVESTORS:
ATRP Solutions Inc.
Liquid X
BioSafe
Newlin Investment Company
Innovation Works
Undisclosed Venture Investors