As the single largest investor in seed-stage companies here, IW fuels the entrepreneurial economy in Southwestern PA.
In 2011, the most recent year for this data, IW invested roughly $5 million directly in companies, helping them commercialize new technologies and create 454 high-skill jobs in robotics, life sciences, software and other high-growth industries. We also helped them attract $218 million in follow-on investment from private and other sources. In fact, 29 of our portfolio companies raised more than $1 million in follow-on investments last year. This brings IW's total follow-on funding to more than $1.2 billion in the past thirteen years.
Many of the region's largest and most successful technology companies count IW among their earliest funders, including: Medrad, FreeMarkets (Ariba), Extrude Hone, Ansys, Ansoft, TrueCommerce, II-VI, McKesson Automation (Automated Healthcare), and Vocollect.
IW 2011 Community Report
Since the launch of Innovation Works’ seed fund nearly 12 years ago, IW has invested more than $50 million in over 150 companies that have gone on to raise more than $1.2 billion in follow-on financing. In that 12-year time, IW has helped transform Pittsburgh’s entrepreneurial community from a nascent stage to one of the most advanced, robust and successful technology clusters in the U.S.
Over the last several years, total annual investment in IW’s portfolio has been trending upward, with over $218 million being invested in 2011. Nearly three of four venture deals in the region go to companies that have previously received IW seed funding. These figures are a reflection not only of the growing maturity of IW’s portfolio, but also the quality of investments and the increasing ability of IW to connect portfolio companies with the right investors.
One of the strongest areas of growth in the region has been in angel investment. In recent years, the average angel investment round in the IW portfolio has topped $2 million dollars, with a few companies garnering extremely large angel rounds.
Venture investment in IW’s portfolio has also increased, partly due to the critical role of our local venture community. While we continually work with local VC partners to help build our regional investment base, a substantial portion of investment in our companies comes from out-of-state VCs, the result of more than a decade of outreach and relationship building by IW and our companies.
These strong numbers are a product of the growing recognition among investors of all stages that the Pittsburgh region is a dynamic, innovative and growing region ripe with opportunities for investment in companies that are on the cutting edge of their fields with big markets and talented teams.