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Innovation & Startups

2012 was a good year for VC growth in Pittsburgh despite a nationwide decline

Venture capital investment across the region continued to climb steadily in 2012 with 79 deals that totaled $168.97 million, a 7.9% increase over 2011 when $156.53 million was raised and spread over 55 deals. 

The news in Pittsburgh was a bright spot; nationally VC figures declined by 10 percent from the prior year. All figures are from the MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association (NVCA), based on data from Thomson Reuters.

“We’re bucking a trend here in Pittsburgh which is very positive,” noted Gary Glausser who joined Innovation Works this month as Chief Investment Officer.

A longtime venture capitalist in the local community, Glausser was with South Side-based Birchmere Ventures for 13 years. He most recently handled alternative investments for the Pennsylvania State Employees Retirement System, a total portfolio of $7 billion. He is also a member of the IW Board of Directors.

Among the highlights of the MoneyTree report for 2012:

The strongest showing in Pittsburgh was the life sciences and software sectors. More than 23 companies received funding in life sciences, predominantly medical device companies, and 19 software and IT services companies were funded. The number of software company deals last year is a sign of the region’s strength in this sector since software companies generally don’t require large infusions of cash, noted Terri Glueck of Innovation Works.

Innovation Works and The Pittsburgh Life Sciences Greenhouse (PLSG) were the largest overall investors, IW with 12 deals and PLSG with six according to the MoneyTree report.

The companies that raised the largest rounds included: Avere Systems ($20 million), Thorley Industries ($20 million), TriStar Investors ($15 million) Duolingo ($15 million) Knopp Biosciences ($14.94 million) and BodyMedia ($11.89 million). 

Other local investors included: Birchmere Ventures, Draper Triangle Ventures, Adams Capital Management, BlueTree Allied Angels, Eagle Ventures and Pittsburgh Equity Partners.

“I personally think the next few years will be exciting,” Glausser adds. “We’re looking at a pipeline of opportunities here. Our mission is going to be to get the capital to put into these companies.”

Writer: Deb Smit
Source: NVCA and MoneyTree 
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