Life Sciences, AI Companies Drive Record VC Investment in Pittsburgh Tech Ecosystem

Pittsburgh’s tech sector saw 182 deals and $999 million in venture funding last year, with total investment reaching $1.89 billion

PITTSBURGH--(BUSINESS WIRE)--Pittsburgh’s technology ecosystem saw a record number of venture capital (VC) deals in 2024, with AI and life sciences companies leading the way, according to a new report released by Ernst & Young LLP (EY US) and Innovation Works. The 13th annual report found that 182 companies secured investments last year, up 33.8% over 2023.

Institutional venture capital investment in the region surged to $999 million, the highest annual VC total on record. While total funding for Pittsburgh tech startups reached $1.89 billion — down from 2023’s $3.12 billion — the report attributes this shift to a decline in corporate investments, which had seen an unusual spike the previous year. Meanwhile, VC-backed startups saw strong growth, particularly in AI and life sciences. The life sciences sector represented 49.3% of total investment in Pittsburgh’s tech economy last year, with software and hardware representing 22.9% and 26.84%, respectively.

“The record deal volume underscores Pittsburgh’s position as a burgeoning hub for AI and life sciences innovation,” said Ven Raju, President and CEO of Innovation Works. “Our research institutions and startup ecosystem continue to produce world-class companies that attract global investment. While this year's report highlights the region’s strength in securing outside capital, we have an opportunity to bolster resident sources of early-stage capital that can further accelerate growth and ensure that more of the economic benefits of Pittsburgh’s tech success stay within the region.”

Pittsburgh’s technology sector continued to draw interest from leading global investors, with 33 firms making their first investment in the region in 2024.

The region’s standing as a tech hub has been bolstered by $13 billion in research funding over the past decade, driven by institutions such as Carnegie Mellon University and the University of Pittsburgh. Their continued leadership in AI, robotics and life sciences innovation has helped establish Pittsburgh as a prime destination for investors looking to capitalize on emerging technologies.

“Venture capital investment in Pittsburgh reached an all-time high, demonstrating the region’s resilience and ability to compete on a national scale,” said Darrell Smalley, Pittsburgh Office Managing Partner, Ernst & Young LLP. “The combination of deep technical talent, cutting-edge research, and a strong pipeline of innovative startups continues to make Pittsburgh a destination for investors looking to capitalize on the next wave of technology-driven growth.”

Read the full report for complete findings on Pittsburgh’s technology investment landscape.

About Innovation Works
Innovation Works is one of the most active early-stage investors in the country and the most active in Pennsylvania. Since its inception of the seed fund in 1999, Innovation Works has invested in over 760 companies that have gone on to raise $3.3 billion in follow-on funding. Portfolio companies have generated and retained over 20,000 jobs in Pennsylvania. Innovation Works is part of the Ben Franklin Technology Partners network, which has catalyzed economic growth over the last 30 years by providing access to capital and networks that help foster innovation and technology-based economic development in Pennsylvania. Learn more at innovationworks.org.

About EY
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