Venture capital investment in 2010 for the Pittsburgh region is trending upward at $159.5 million spread over 52 deals, hitting a high note that may be sign of the region's economic recovery.
PNC's Stuart Hoffman's annual economic forecast this month described a "self-sustaining recovery in 2011 and beyond," with more jobs and rising housing prices in the region. Hoffman makes his forecast at the Economy Club luncheon at the Omni William Penn every January.
Figures for the fourth quarter 2010 were down from 2009. Twelve Pittsburgh companies received $8.71 million in 2010 compared to 14 companies that received $11.8 million in 2009. The top three funded companies in the last quarter were: Foundation Radiology, $3.05 million; Thar Pharmaceuticals, $2.03; and Aethon, $2 million.
Among the top deals of 2010: Precision Therapeutics, $35 million; Netronome Systems, $23 million; Modcloth, $19.2 million; Avere , $17 million; ALung, $14 million; Clear Count Medical Systems, $5 million.
Craig Gomulka, chief investment officer at Innovation Works, agreed that comparing the deal flow over a five to 10 year time window reveals a positive picture emerging in the region. While deal data from reporting agencies differs during that period, 2010 was among the stronger years in the last decade.
"The relative overall amounts of capital flowing into the region are trending higher," Gomulka says. "A lot of that is the result of combined efforts, other entities like us, who play a central role and try to catalyze the investor community."
Last year saw a diverse mix of IW portfolio companies receiving support. Among the strongest is the information technology sector at about 55% followed by energy and life sciences at 25%. The remaining percentage included advanced electronics, robotics and advanced materials. IW, one of the most active economic development investors in the region, funded eight out of 11 Pittsburgh-area startups during the fourth quarter.
Pop City uses figures provided quarterly by the MoneyTree Report by PricewaterhouseCoopers and the
National Venture Capital Association, based on data supplied by Thomson Reuters.
Writer:
Deb SmitSource: Craig Gomulka, Innovation Works; Emily Mendell, NVCA
Image of Craig Gomulka, IW, courtesy of Innovation Works