Ever since Lycos Pittsburgh has been known as the kind of place where companies can get started. ModCloth, Resumator, CloudFab and others have continued (and accelerated the pace of) that trend. The problem for these growing companies is funding. They can find seed money here (often through government programs like AlphaLab and InnovationWorks), but not the millions that it takes to nurture a young company gunning for Google or Facebook. I think that’s about to change, and here are two good reasons why:
I doubt this will result in a more active group of Pittsburgh-based VCs. I expect it will instead come in the form of more frequent visits from firms in NYC or the Valley that are more open to funding companies that aren’t local. Look for the trend over the next year or two.