What we do

Innovation Works provides investment, business expertise and hands on support for many of our region’s top technology entrepreneurs. We believe that we succeed when our partners succeed. This year marks a special milestone for our programs, marking:

• The 20th anniversary of Innovation Works
• 10th anniversary of AlphaLab
• And, the 5th anniversary of RFV and AlphaLab Gear

By definition, milestones like anniversaries keep us on track, reminding us of how far we’ve come and charting the road ahead. In the case of building a startup community, it’s difficult to measure the impact over months or even a year. However, when you measure the accomplishments over longer periods of time, like we can with these anniversaries, you can see the incredible progress our region’s innovation economy has made.

1. We see an ever-increasing number of startups forming — fueled by our region’s universities, corporations and grassroots community.
2. Our region has seen tremendous growth in investment — outpacing national averages.
3. We are increasingly attracting offices and research centers for major technology companies, with the likes of Google, Uber, Facebook and Ford located here.
4. And the number of grassroots organizations and support organizations is bigger than ever.

It’s hard to imagine, but when Innovation Works launched 20 years ago, the concept of a seed investment fund was a novel concept. Over the years, IW has supported hundreds of companies that have added thousands of jobs, commercialized incredible innovations and attracted billions in follow-on investment into the region’s economy. Today, Innovation Works is one of the nation’s most active investors and our programs have been emulated by regions around the world.

AlphaLab became one of the nation’s first accelerators programs when it launched 10 years ago. It is a founding charter member of the Global Accelerator Network, consistently ranked as one of the nation’s best accelerator programs while serving as a catalyst and hub to our region’s growing software entrepreneurial community.

AlphaLab Gear, is five years old and has also forged new ground, becoming one of the world’s first accelerators focused on physical product companies. Leveraging our region’s legacy of engineering and manufacturing, AlphaLab Gear has created a home for the next generation of makers and hardware innovators. Along with AlphaLab, it is also consistently ranked as one of the top accelerators in the country. The program has also set the standard for inclusive innovation and community collaboration.

Riverfront Ventures is a $24 million venture fund dedicated to supporting regional startups. Since its founding, it has invested in 12 companies and helped catalyze more than $240 million of investment — supporting companies like Wombat, NoWait and Complexa.

Together, these four programs have set a strong foundation to support the growth of our region’s startup community.

Impact of investing in and assisting startups

Over 20 years of steady growth, IW has used a pretty straight forward, and successful formula to help the region’s entrepreneurs succeed. We provide entrepreneurs with the critical ingredients they need for success.

• We fortify great ideas with the resources startups need — supporting entrepreneurs and their ideas at the early stages when they need it most. Our goals is to help our companies form the building blocks of growth. It takes more than just investment. Startups need advice, connections and critical experiences to survive their earliest stages.
• Then, we multiply the impact of those ideas. By fueling startups with critical resources, there’s a multiplier effect that results when the companies grow revenues, employees and use the local supply chain — creating an exponential multiplier effect for the local economy. This creates a ripple effect for our communities that is greater than the sum of the parts.
• Lastly, we diversify the Pittsburgh economy. Startups are serving as engines of growth for our region, fueling a new knowledge-based economy built on sectors like robotics, AI, life sciences and advanced manufacturing. In addition, by actively seeking to support diverse entrepreneurs and ideas, which is critical to building a successful company, startups are also making our region more inclusive.

The end result is a growing network of innovators and risk-takers who are fostering the next generation of companies and giving us all reason for optimism.

Impact beyond numbers

We are proud to work with so many high-growth companies in our region. Their stories are remarkable. Although we’re proud of each and every one of our partner companies, here are a few examples that illustrate their impact on our region.

• When startups like Vivisimo get acquired, they attract large tech giants like IBM to build operations in our region.
• Companies like Cog-Rx address societies greatest challenges like finding a cure for Alzheimers.
• When companies like Complexa raise $62 million in financings, they attract investment to grow our region’s economy.
• Companies like Wombat are adding 100+ high-paying, family sustaining jobs this year.
• When companies like Thread grow in communities like Homewood, they elevate our neighborhoods and make tech jobs more accessible to more people.
• And when companies like Ottomatika drive an Audi SUV autonomously across the US they help rebrand our region as a globally important tech hub.

Measuring Momentum

Pittsburgh startup community is definitely showing some great momentum. Nearly every regional metric IW tracks has seen impressive growth over the last decade. This graphic illustrates that point.

Number of annual IW applicants increased 226%, Total dollars investment increased 198%, Total funding rounds increased 129%, University licenses increased 114%.

When you couple this with other signs of progress in our community, the momentum is undeniable:

• Startup clusters are popping up everywhere and have a positive impact on our region.
• Grass roots organizations are sprouting up to support entrepreneurs and it seems like every night there are several terrific events around town for entrepreneurs to attend.
• And the momentum continues to increase with globally renowned tech firms like Google, Facebook/Oculus, Uber, Ford and Bosch setting up R&D shops in town.

The data shows that:

1. Momentum is building in the region’s entrepreneurial community.
2. Technology entrepreneurs play a key role in our region’s success.
3. IW is providing critical resources to the region’s entrepreneurs.

The road ahead

The region holds much promise with a vibrant entrepreneurial community that is stronger than ever. The factors that have helped shape our technology community in the past are the same factors that will help to propel it forward in the years to come. To move to the next level we must:

• We need more of our start-ups to grow to scale
• A growing base for first time and serial entrepreneurs
• An expanding base of local investors and Increased attention from out-of-town investors
• An increased appreciation for the value of risk taking and the importance of lessons of failure
• Continued strength in research and education
• We need to ensure everyone in our region participates in the growth of our economy
• Growth in tech giants setting-up offices in our region
• A growing number of grass-roots organizations focused on supporting entrepreneurs

As these things begin to evolve and reach greater critical mass, our entire region will become an incubator for technology entrepreneurs.

IW is proud to have played a role in helping the region reach this first set of milestones and we look forward to working with our regional partners as we continue the journey.