Investment in Pittsburgh’s technology sector · 2020-03-24 · Investment increased more than 5X...
Transcript of Investment in Pittsburgh’s technology sector · 2020-03-24 · Investment increased more than 5X...
Investment in Pittsburgh’stechnology sectorTrends and highlights, 2010-19
► Mega rounds (+$100M) continued and VC investment remained relatively steady at $136.5 billion in 2019 compared to $140.2 billion invested in 2018.
► VCs exited over $250 billion, nearly 80% of which came from VC-backed IPOs.
► The number of US financing rounds increased 2.2% from 10,542 in 2018 to 10,777 in 2019.
► Nontraditional VC investors such as sovereign wealth funds and PE funds are driving larger deal sizes and higher valuations.
National highlights show emergence of corporates and some non-traditional investors
► Investment increased more than 5X from $550 million in 2018 to almost $3.0 billion driven by $2.0 billion of corporate investment and $928 million of venture capital investment.
► The number of local investment deals increased 51% from 2010 to 2019 and 139 unique Pittsburgh area startups attracted funding this year.
► In dollar terms, autonomous vehicles dominated funding, but by number of companies, funding was diversified across software, life sciences, hardware/robotics, materials and industrial technologies.
Pittsburgh draws $3B in investment in 2019
In 2019, 139 Pittsburgh companies attracted close to $3B Investment dollars grew 627% from 2010 to 2019
Source: CB Insights, Dow Jones VentureSource, Innovation Works, PitchBook
Strong trends in number of deals and companies fundedThe number of unique companies funded increased 48% from 2010 to 2019
Source: CB Insights, Dow Jones VentureSource, Innovation Works, PitchBook
Growth in investors, exits, research boost Pittsburgh
► Local companies generated over $10.7 billion in disclosed exit values from 2010 to 2019.
► Pittsburgh companies attracted investment from over 270 firms from around the world in the past 5 years.
► 39 firms made first investment in Pittsburgh in 2019► Pittsburgh stacks up favorably per capita to other regions in the
US, outpacing other emerging tech hubs in terms of deals and/or dollars.
► Our pipeline is strong. Local research universities have deployed more than $10 billion in research funding in the past decade.
Pittsburgh has a diverse array of industries attracting capital
Source: CB Insights, Dow Jones VentureSource, Innovation Works, PitchBook
Unique Pittsburgh companies receiving funding by tech sector
103 exits valued at $10.7 billion from 2010 to 2019 and 8 exits in 2019Representative Deals
GiftCards.com acquired by
Blackhawk Network2016
Net Health acquired by
The Carlyle Group2017
M*Modal acquired by
3M2018
Cancer Treatment Services International
acquired byVarian Medical Systems
2019
Creehan & Company acquired byInovalon
2016
Krystal BiotechIPO2017
Avere Systemsacquired byMicrosoft
2018
VoIP Innovations acquired by
Sangoma Technologies2019
Think Through Learning acquired by
Imagine Learning2016
NoWaitacquired by
Yelp2017
TandemLifeacquired byLivaNova
2018
StelKastacquired by
Globus Medical 2019
Thar Pharmaceuticalsacquired by
Grunenthal2016
ModClothacquired byJet.com
2017
Wombat Security Technologiesacquired by
Proofpoint2018
The Efficiency Network acquired by
Duquesne Light 2019
Firms investing in Pittsburgh companies
3Lines Venture CapitalAltos VenturesAmazon Alexa FundARCH Venture PartnersAspect VenturesAV8 VenturesBlackhorn VenturesBling CapitalBreakout LabsBreakTrail VenturesCapitalGCota CapitalCureDuchenne VenturesFoundation CapitalFounders FundGeodesic Capital
Greylock PartnersHomebrewIllumina VenturesIndie.vcIntel CapitalKeiretsu ForumKleiner Perkins Caufield & ByersLightspeed Venture PartnersLucas Venture GroupMenlo VenturesMotus VenturesNewGen CapitalNorwest Venture PartnersOriza VenturesPartech VenturesPaxion Capital Partners
Plexo CapitalRight Side Capital ManagementRiverwood Capital GroupSalesforce VenturesSequoia CapitalSilverton PartnersSpace Angels NetworkStout Street CapitalTech Coast AngelsTridel CapitalTrucks VCTsingyuan VenturesUberWestern Digital CapitalWestly GroupWRVY Combinator
New England regionBain Capital VenturesGE VenturesHarborlight CapitalHyperplane Venture CapitalL CattertonLearnLaunch Accelerator
Liberty Mutual Strategic Ventures
PillarProvidence EquitySaturn PartnersVentureWell
New York regionAllen & Co.Carbon VenturesDFWEastern Advisors Capital Groupff Venture CapitalGolden SeedsGreat Oaks Venture CapitalGrit Capital ManagementHearst VenturesInsight Venture PartnersKKR
Lead Edge CapitalLevel EquityNew York AngelsPfizer Venture InvestmentsProspect Capital CorporationRed Swan VenturesSony Innovation FundSpace AngelsTechStarsTrimaran Capital PartnersTwo Sigma VenturesUnion Square VenturesValueStream Ventures
California and Western region
Allos VenturesArboretum VenturesAscension VenturesBoeing HorizonXCentennial VenturesChrysalis VenturesCoreNetwork FundDrive Capital
Dundee Venture CapitalEkistic VenturesElevate VenturesFirebrand VenturesKB PartnersLiberty Global VenturesM25 GroupNew Stack Ventures
Origin VenturesRadical VenturesSalix VenturesSerra VenturesStadia VenturesSterling PartnersWest Capital Advisor
Philadelphia regionActivate Venture PartnersCommerce Health VenturesDreamit HealthLeading Edge VenturesMI-12 VenturesNovitas CapitalSeventySix Capital
ABS CapitalAzafran CapitalBilgola CapitalGrotech VenturesHarbert Growth PartnersLavrock VenturesNew Enterprise Associates
Revolution VenturesRise of the Rest Seed FundSaaS VenturesSands Capital VenturesTDF VenturesUpdata PartnersVital Venture Capital
Baltimore/Washington, DC region
Pittsburgh regionActive X-itAdams Capital ManagementAGSMBirchmere VenturesBlueTree Capital GroupDraper Triangle VenturesEagle VenturesIdea FoundryiNetworksInnovation WorksMountain State CapitalNewlin Investment CompanyNext Act Fund
Midwest region
Adiuvo Investment (Poland)Advantech Capital (China)Balderton Capital (UK)DENSO (Japan)Edmond de Rothschild Investment
Partners (France)Forward Partners (UK)Greensoil Investments (Canada)H&M CO:LAB (Sweden)Hatcher Plus (Singapore)
HBM Healthcare Investments (Switzerland)
HBM Partners (Switzerland)Hydra Ventures (Netherlands)Hyundai (South Korea)ITIC (Taiwan)JAFCO (Japan)next47 (Germany)Northern Light Venture Capital (China)
Philips (Netherlands)Renewal Partners (Canada)Runa Capital (Russia)Softbank Group (Japan)Tencent (China)Toyota (Japan)TVM Capital (Germany)Volkswagen Group (Germany)
International
Over 180 unique venture capital firms, angel groups and strategic investors have made investments in Pittsburgh companies in the past five years. The chart below contains a sampling of these firms including 31 firms – listed in bold font –that made their first investments in the region in 2018.
Open Fields Entrepreneurs FundPittsburgh Equity PartnersPittsburgh Life Sciences Green
HousePLSG Accelerator FundRiverfront VenturesStartbotSteelbridge LabsThe Robotics HubTNC VenturesTopanga PartnersUPMC EnterprisesVelocity Fund Partners
Pittsburgh ranked 15th in deals per million residents in 2019among the 40 largest Metropolitan Statistical Areas
Source: Pitchbook and US Census
Pittsburgh ranked 21st in investment dollars per capita in 2019among the 40 largest Metropolitan Statistical Areas
Source: Pitchbook and US Census
Note: The data presented above is based on raw data from the Pitchbook database. Pitchbook omits several of the most significant financing events in the past several years, including major financing rounds raised by Argo AI, Uber ATG and Aurora.
Patent generation and licensing at Pittsburgh’s world-class research universities continue to increase
Source: Carnegie Mellon University, Duquesne University and the University of Pittsburgh
197
280
244
322 333
297
334360
406373
6179 82
96
128
122145
186 180 178
2 0 1 0 2 0 1 1 2 0 1 6 2 0 1 8 2 0 1 92 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5
Licenses, Options, and Other Agreements
2 0 1 7
Patents Issued
2019 Pittsburgh investment highlights
AuroraAmazon, Geodesic Capital, Hyundai, Lightspeed VenturePartners, Sequoia Capital, Shell Ventures, T. Rowe Price, Greylock Partnersand Index Ventures
Gecko RoboticsDrive Capital, Founders Fund, Y Combinator, Next47 andMark Cuban
Argo.aiFord, Volkswagen
AstroboticSpace Angels Network, Innovation Works
DuolingoNewView Capital, Drive Capital, Inside Capital, Capital G, Kleiner Perkins, A-Grade Investments and Union Square Ventures
fifth seasonDrive Capital
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