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.