Early Signs of Growth

In a recent Pittsblog post, Mike Madison challenged the Pittsburgh tech community to identify local companies that have the potential to reach 100 employees and achieve at least $10 million in revenue.

Of course, predicting future growth with any certainty is impossible, so we may be better served to look for leading indicators – such as companies that are attracting significant private investment (indicating that their investors recognize their growth potential), and/or which have grown their employment ranks on a track that could enable them to surpass Mike’s 100-employee hurdle sometime in the not-too-distant future.

So, here’s a list for starters… The following 20 tech companies either: (1) have raised at least $10 million in venture capital during the past five years; or (2) currently employ at least 50 people.

• Aethon*
• Akustica
• BodyMedia
• BPL Global*
• Cellumen*
• CombineNet
• HyperActive Technologies*
• Inspired Technologies
• Invivodata
• KCRS*
• Knopp Neurosciences*
• Landslide Technologies*
• Millennium Pharmacy Systems
• Netronome Systems
• Plextronics*
• Precision Therapeutics*
• RedPath Integrated Pathology*
• Renal Solutions
• True Commerce*
• Vivisimo*

*Note: Companies with an asterisk received seed funding from Innovation Works.

The above list is not exhaustive, and only reflects a quick scan of venture funding data from the PWC MoneyTree Survey, plus employment figures published on the web or in recent press articles. IW is also aware of a handful of additional companies that fit the criteria which haven’t been disclosed publicly.

Of course, venture funding and current employment levels aren’t the only ways to identify companies that are on a strong growth trajectory. To find other high-potential tech companies in Pittsburgh, we might also consider companies that have recently announced large customer deals or strategic partnerships. For example, last Friday, Thorley Industries (another IW company), a local startup with seven employees, announced a $215 million licensing and development deal with Hasbro. Undoubtedly, this is a good indication of the future growth potential of this young company.

For more discussion on this topic, take a look at Pop City's Companies to Watch in 2008 article.

New Blog

There are some great conversations going on in the Pittsburgh blogosphere about startup tech companies and Pittsburgh’s entrepreneurial environment. In particular, I’ve read with great interest the posts of Mike Madison at Pittsblog, and Harold Miller at Pittsburgh’s Future. With this blog, I’ll try to add another perspective to the conversation, from the point of view of someone who, for the past seven years at Innovation Works, has had the privilege of working with a large number of our region’s most talented tech entrepreneurs.

The blog’s name, “Pittsburgh Ventures,” does not refer to a specific initiative or fund, but rather is meant to indicate that the discussion on this blog will focus on new (primarily tech related) ventures in the Southwestern PA region, as well as on the act of “venturing,” as it applies to entrepreneurs, investors and the region as a whole.

I’ll try to post as frequently as possible, and I welcome input, suggestions and ideas from all sources.