Pittsburgh 2014 Startup Investments Surpass Previous Year

Pittsburgh startups are getting noticed. Some of the year's investment events like the 3 Rivers Venture Fair and Steve Case's Rise of the Rest Tour have highlights Pittsburgh's talented entrepreneurs and growing startup community. And now, data collected from Thomas Reuters is showing that 2014 investments in local startups has already surpassed last year's third quarter totals.

A combined $104.3 million was pumped into 26 Pittsburgh-area tech and life sciences companies during the third quarter by investors including venture capital and private equity firms, economic development groups, corporations and high-net-worth individuals. That's according to the MoneyTree Report, released Friday by PriceWaterhouseCoopers LLP and the National Venture Capital Association, based on Thomson Reuters data. 

The dollars were almost double the $54.3 million invested locally during the third quarter of 2013. For the nine-month period, $242.8 million has been raised by 56 young Pittsburgh companies, passing the $130.5 million raised during the entire 12 months of 2013 and passing all full-year totals going back to 2002. In 2001, local companies raised $360.3 million.

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Three Rivers Venture Fair Kick Off

The annual 3 Rivers Venture Fair is kicking off today! The event is taking place until tomorrow and is featuring some of the area's up-and-coming startups. Each year investors from all over come to see the chosen companies pitch their ideas, and featured companies have gone on to raise over $500 million. Many startups from around the Pittsburgh region are showcasing their innovations and pitching to investors, one of RCI's own resident businesses', Diamond Kinetics, Inc. is among this year's presenting companies.

Some 42 tech and life sciences firms, 25 of which hail from the Pittsburgh region, are scheduled to make pitches with the goal of garnering capital commitments at Heinz Field during the Oct. 7-8 event. 

“One in four people will be an investor,” said Kelly Szejko, president of the Pittsburgh Venture Capital Association, which has presented 3RVF every 18 months since 2002. She said about 600 are attending, of which 150 are either venture capitalists or private equity or angel investors from across the country. 

The strong response is due to the large number of presenting companies, which in turn is possible because of how the event is being staged this year, Szejko believes.

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Things to do in Pittsburgh: Free RADical Days

Photo by Anne Oeldorf-Hirsch

If you are on a tight budget or if you are just looking for some fun things to do in Pittsburgh this weekend, you should take advantage of the free RADical days! The Allegheny Regional Asset District (RAD) sponsors RADical days to thank the community for supporting all the locally funded parks, libraries, museums and other recreation organizations and facilities in the region. Until November 9th there will be a line up of exciting events and things to do for free, but for now, here is a look at what you can check out this weekend: 

FRIDAY 

Pittsburgh Glass Center: 10 a.m.-9 p.m. Featuring heat-defying acts of art, including glassblowing, flameworking and s’more-making demonstrations. See the Pittsburgh Biennial at PGC featuring the work of 12 local artists: Bob Beckman, Jeremy Boyle, Melissa Fitzgerald, Jason Forck, Toby Fraley, Vanessa German, Ashley McFarland, Juliet Pusateri, Travis Rohrbaugh, Will Schlough, Kara Skylling and Margaret Spacapan. (5472 Penn Ave., Garfield)
Pittsburgh Center for the Arts: 10 a.m.-1 p.m. Gallery tours and family friendly art activities in the PCA Galleries. (PCA Galleries, 6300 Fifth Ave., Shadyside) 

Pittsburgh Filmmakers: Ann Arbor Film Festival Touring Show — 7:30 p.m. (Program A); 9:15 p.m. (Program B). The Ann Arbor Film Festival offers programs of recent independent and experimental short films across all genres: experimental, documentary, animation, narrative and hybrids. (477 Melwood Ave., Oakland) 

SATURDAY 

National Aviary: 10 a.m.-5 p.m. Discover more than 150 bird species from around the world under one roof. (700 Arch St., North Side) 

Audubon Society of Western Pennsylvania — Beechwood Farms Nature Reserve birding walk or seed collection: 10 a.m. Join Audubon for a naturalist-led walk on the trails. Also: collect native plant and wildflower seeds. Reservation required for both activities. aswp.org or 412-963-6100. (614 Dorseyville Road, Fox Chapel) 

Boyce Mayview Park — The Outdoor Classroom: 2-8 p.m. Guided nature hikes, geocaching, crafts and campfire treats (campfire 5-8 p.m. only). (1531 Mayview Road, Upper St. Clair) 

Allegheny Land Trust — Wingfield Pines Conservation Area: 2-8 p.m. A variety of activities for all ages, from guided nature walks about water and wildlife to self-led fun such as bird watching and crafts. (1550 Mayview Road, Upper St. Clair) 

Pittsburgh Filmmakers: Ann Arbor Film Festival Touring Show — 7:30 p.m. (Program B); 9:15 p.m. (Program A). (477 Melwood Ave., Oakland)

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Now Leasing Office Space

Office space is a hard thing to come by in Pittsburgh these days. In fact, we have one of the lowest office vacancy rates in the U.S. right now according to a recent study by Avison Young. With the tech and other industries making more and more headway in the 'steel city', demand for office space has risen. However, that doesn't mean that it is impossible to find an office for your business within the city.

We are now leasing office space at our RCI location on the Northshore. If you aren't familiar with us yet, here is a brief overview of Riverside Center for Innovation (RCI) and how we act as a business incubator in the region.

"RCI works to create a healthy environment for the region’s entrepreneurs and small businesses to prosper by providing incubation support, training, innovation strategies, and brownfield development."

Some of our graduate tenants include companies like: WebKite, BusinessWise, LLC, YourTalentsAgents, McGuire Anderson and HeadRightGames.

If you'd like more information about leasing space at RCI, then feel free to visit our website or give us a call at 412-322-3523.

Pittsburgh Listed in the U.S. Top 25 Metro GDPs

Pittsburgh has been named the 23rd U.S. metro area with the highest gross domestic product (GDP), according to the latest report from the Bureau of Economic Analysis. The report lists Pittsburgh's GDP at $131.265 billion in 2013, a 3.3% increase from 2012. Since 2001, the city's economy has been growing pretty steadily overall. The rising rank could signal a growing business climate in the region. The Pittsburgh Business Times', Paul J. Gough, weighed in on the report saying:

The gross domestic product, also known as the gross national product, is the dollar amount of all goods and services within a national border. The Pittsburgh region's share of the GDP has been growing steadily from $88.75 billion in 2001 until the most recent figures. It only declined one year, in 2009, due to the impact of the recession.

But the region lags when it comes to change since 2010, according to a Buffalo Business First analysis of the federal data. It's 12.6 percent growth since 2010 puts it only at No. 124 in terms of three-year change.

Pittsburgh's GDP is higher than any other metro region in Pennsylvania except Philadelphia (No. 8, $383.4 billion). It's ahead of neighboring big cities including Columbus, Ohio (No. 30, $114.25 billion), Cleveland (No. 26, $122.88 billion) and Buffalo, N.Y. ($51.63 billion, No. 56).

The largest part of Pittsburgh's GDP is in the financial category, which contributed $24.735 billion in 2013, up slightly from 2012. That includes finance, insurance, real estate, rental and leasing activity. Professional and business services were the second highest at $21.189 billion.

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Is Pittsburgh the Future of Tech?

Pittsburgh used to be known as the city of steel, but in recent years, it has been more commonly associated with something else-technology. Technology startups and the entrepreneurs that fuel them are being mentioned more frequently in media and the business world. In a recent Forbes article, the Young Entrepreneur Council pointed to Pittsburgh's renaissance as a source of learning for entrepreneurs. From Steve Case's Rise of the Rest Tour to Peduto's tech roundtables, Pittsburgh is getting some major attention from both the tech industry and the entrepreneur community. Just this week, tech leaders gathered in Pittsburgh at the Thrival Festival and discussed, "what's next for tech?" Here's what they had to say:

Hardware and software coming together. Women. CEO-level talent. More venture capital.

These are some of the things that will make Pittsburgh's tech future, according to a group of local entrepreneurs who gathered on Thursday night at AlphaLab Gear to talk about technology in Pittsburgh and how it will transform the city.

Dennis Yablonsky, chief executive officer of the Allegheny Conference on Community Development, moderated the event.

Yablonsky said there are two things he thinks will solidify Pittsburgh as a tech hub. One is local venture capital. There's not enough, he said, and when Pittsburgh companies are funded from the outside, he believes they tend to leave. 

“If the lead investor is in Pittsburgh, the company will stay in Pittsburgh,” he said. 

Yablonsky said the area also needs more executive talent and a great source is “boomerangers” like him, people who left the city in their youth, and now, because of a low cost of living and opportunities to succeed, see the right reason to return.

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What are your thoughts? Can Pittsburgh really be the future hot spot for technology?

Are Collaborative Workspaces Good for Startups?

A newer trend in office design has been to create either open or collaborative workspaces. Collaborative workspaces are offices design to emit a free-flowing and sharing environment. Sometimes they are reserved to one company and other places may be a central hub for a group of like-minded professionals to gather and do work together. Some of the benefits listed in favor of collaborative workspaces is that is foster collaboration and productivity. On the other hand, they are also criticized for impeding productivity with noise and chatter. What do you think about collaborative workspaces? 

A recent Forbes article had a few thoughts for them:

There’s more to innovation than finding clever people and throwing them into a conference room in hopes that game-changing collaboration will follow. Today, to drive innovation and attract the best talent, it’s crucial to create workspaces that cater to diverse forms of collaboration.

In the same article, writer Sarah Miller listed four collaborative office qualities and how they foster innovation and teamwork.

- Space that is flexible: Workspace that is movable and reconfigurable supports spontaneity. Flexibility can come in the form of mobile furnishings, roving white boards, or even architectural elements like sculpture that allow users to configure the space to their immediate needs. Example: Google. 

- Space that inspires: Natural lighting and exterior views stimulate and sustain creative thinking. One factor linked to innovation edge is an ability to imagine and visualize the future. Spaces that contain fantastical images and access to technology tools help employees construct new scenarios for markets, products, and services are key in this endeavor. Example: Facebook. 

- Space for small teams: The best collaborative work is done by teams of 2 – 8 people. Cozy spaces located near an individual’s dedicated work area are ideal for small team gatherings, and encourage frequent use. These spaces need to offer full connectivity, too. Example: Groupon

- Space that reflects culture and brand: In a global economy, recalling that the work you’re doing in one geography impacts customers in other geographies is paramount. Connecting employee efforts to pride in past success creates engagement and a willingness to drive future change. Displays of existing products or collective achievements also inspires pride and risk-taking. Read the full article here.

In Pittsburgh, there are a few collaborative workspaces that are not central to a particular company. One of those is called The Hardware Store, a co-working office space where professionals can work with other professionals. The group is holding a Fall Picnic and Pitch Fest at its headquarters on September 18 that entrepreneurs may want to check out.