The Pittsburgh region recently received a ray of sunshine amid the COVID-19 clouds when Innovation Works and partner Ernst & Young released their annual regional investment report and analysis. Innovation Works (IW) is part of the statewide network that provides seed investment and expert assistance. It also operates the AlphaLab and AlphaLab Gear startup accelerators. IW also interacts in numerous ways with the University of Pittsburgh as a mentor and partner for Pitt innovation projects as they mature and spin out of the University. The region set a new record for startup funding attracting nearly $3 billion in investment in 2019, a staggering 500 percent increase over the previous year. Although the number of startups funded dipped slightly to 139 from 147 in 2018, that only meant that the funding rounds on average were larger.
We are regularly checking in with Pitt spinout companies to get an update on their progress in developing their products, acquiring customers and adding employees. Today we catch up with John Cordier (pictured on right) co-founder of Epistemix Inc., whose technology could not be more relevant to the current global public health challenge.
Small businesses in Western Pennsylvania are dealing with the massive economic upheaval caused by the closings and social distancing measures put in place to limit the spread of the COVID-19 virus. And with events unfolding rapidly regarding the government’s proposed relief packages, they are struggling to make decisions on whether or not to furlough employees and to determine what access to emergency financing may be available.
Last month the Innovation Institute and the Office of Sponsored Programs welcomed consulting firm McAllister & Quinn to deliver a workshop covering the benefits of applying for federal research funding via the Small Business Innovation Research (SBIR) program, and helpful information on writing an effective application. These programs offer non-dilutive grants through 11 different federal agencies to small businesses, including those seeking to bring university-developed innovations to market.
The Pittsburgh Venture Capital Association recently convened a panel of venture capitalists from outside the region to gain an understanding of what they are looking for in investment prospects here in Pittsburgh. Three of my colleagues at the University of Pittsburgh Innovation Institute, Tony Torres, Kelly Dane and Paul-Valentin Pitou, have spent the past 18 months in a focused effort to do much the same.