Angel Funding

From the most recent Pop City to hit my inbox, what looks like a nice bit of success for Innovation Works and the startup technology community:

May 24, 2006

Over $1 million raised in 'angel' capital for local startups

Eight local technology startups raised more than $1 million in private investment since presenting their business plans at the first-ever Pittsburgh Angel Venture Fair in February. Companies had 90 days to raise a minimum of $100,000 to leverage an additional investment from Innovation Works (IW) of up to $50,000 each. The startups’ successful fundraising efforts motivated IW to increase its "challenge investment" from $250,000 to $400,000.

"These companies represent the exciting transformation occurring in and around the Pittsburgh area," says Matt Harbaugh, director of external finance at IW. The challenge was conceived as an incentive for entrepreneurs and investors to close a round of financing within a short time. "The fact that so many companies raised so much money is evidence of the increasing momentum of the region's early-stage technology economy," says Harbaugh.

Awarded companies are: Carnegie Speech Company, Inc., PetsDx, Inc., ChemDAQ Corp., Proteopure, Inc., FireFly Power Technologies, LLC, StageMark, Inc., Mid-Market America, Inc., and Thorley Industries.

Based on this success, IW now plans to hold its Angel Venture Fair and challenge investment annually. The company invests up to $600,000 yearly in startups, has four sister organizations statewide and is funded by the PA Department of Community Economic Development. "When a local company is launched, we like to be the first people they come to," adds Harbaugh.