Next on the Mic: Liam Krut, Reinforced Ventures
In this episode of "Next on the Mic," Charles Mansfield, Ecosystem Community & Research Manager at InnovatePGH, sits down with Liam Krut, investment partner at Reinforced Ventures. Liam shares about his journey into venture capital, his return to Pittsburgh, and his insights into investing in overlooked, cutting-edge technologies. They explore the importance of fostering a strong startup ecosystem, Pittsburgh's unique innovation potential, and Reinforced Ventures' approach to supporting groundbreaking companies. Tune in for a candid discussion about the future of tech, investment, and the evolving venture capital landscape.
Investing in the Unseen Future
Navigating the Niche
At the core of Reinforced Ventures' strategy is a bold investment thesis, betting on technologies that might seem unconventional or “weird” today, but could redefine industries tomorrow. Liam highlights how his team zeroes in on niche innovations that, while often overlooked, have the potential to break into mainstream markets. These types of advancements frequently emerge from deep research in hard tech sectors like robotics, software, and life sciences—areas in which Pittsburgh has naturally built a strong foundation. Although Reinforced Ventures invests across the English-speaking world, their proximity to Pittsburgh’s thriving research ecosystem offers unique advantages.
A Global Investment Perspective with Local Connections
While Reinforced Ventures doesn’t confine its investments to a single geography, the firm remains focused on identifying transformative technologies globally. From breakthroughs in 3D printing to advancements in laser confinement, their portfolio spans a wide range of sectors and regions, always seeking innovations that can reshape entire industries.
However, being rooted in Pittsburgh provides a strategic edge. The city’s ecosystem, fueled by leading research universities, engineering talent, and corporate innovation, serves as a vital resource for the firm, particularly when conducting due diligence on complex, technical investments. Access to top researchers and experts in fields like robotics and AI allows Reinforced Ventures to thoroughly vet potential deals, enabling them to invest with confidence in cutting-edge technologies.
Tips for Entrepreneurs on Raising Capital
Leverage Local Investors for National Connections
Liam emphasized that local investors can be powerful connectors to a wider national and international network. Founders should prioritize developing relationships with one or two local venture capitalists who are aligned with their vision. These investors can act as champions for the startup, introducing the company to their co-investors in major hubs like New York, San Francisco, or London.
By having a local investor who believes in your vision and is willing to advocate for your business, entrepreneurs can tap into broader investment opportunities and gain exposure in more competitive markets. This can often lead to co-investment opportunities from VCs outside your immediate geography.
Focus on a “Tribe” That Fits Your Vibe
Another critical point Liam shared is the importance of finding investors who align with the specific trend or industry your startup fits into. Venture capital is highly influenced by market trends, with certain sectors gaining more attention at any given time—whether it's large language models, defense tech, or battery innovations.
Entrepreneurs should focus on identifying VCs who are excited about the space they operate in and build relationships within that “tribe” of investors. Once you connect with a VC who is passionate about your work, they can open doors to other investors who share that interest, creating a ripple effect that expands your network.
Build Relationships Early and Maintain Them Long-Term
While reaching out to VCs in other regions is critical, Liam stressed the importance of starting those relationships well in advance of needing to raise significant rounds. Founders should aim to build connections with investors early on—even if they aren’t actively fundraising—so that when the time comes, those relationships are well-established.
Liam noted that later-stage investors often prefer to back founders they’ve known for a long time, having watched their progress and gotten to know them personally. Making regular trips to major venture hubs or maintaining ongoing communication with investors can help build this trust over time. Establishing these long-term relationships can make all the difference when it’s time to raise a larger round, as investors will feel more confident in your trajectory.
What’s Next for Venture Capital?
Focus on Fundamentals
As venture capital shifts in response to broader economic conditions, Reinforced Ventures remains committed to its strategy of backing companies with irreplaceable expertise in underfunded areas. While some may focus on trends or hype cycles, Liam stressed that the real opportunity lies in identifying the people who are the best in the world at what they do—whether they’re building new classes of materials, improving industrial processes, or tackling healthcare challenges.
This long-term approach is well-suited to a place like Pittsburgh, where innovation tends to happen in highly specialized fields with longer development cycles. The city’s blend of academic research, corporate engagement, and startup activity provides fertile ground for these kinds of investments, making it an ideal setting for ventures that are playing the long game.
Next on the Mic is a YouTube series that spotlights key players from Pittsburgh's vibrant tech ecosystem. Each episode features candid conversations with founders, investors, and innovators driving the city’s cutting-edge advancements in sectors like robotics, AI, life sciences, and more. Hosted by InnovatePGH, the series offers insider perspectives on the challenges and opportunities shaping Pittsburgh's growing role as a hub for transformative technology and entrepreneurship. Subscribe here.