Local Ecosystem Leaders React to Pittsburgh’s Rise on Startup Genome’s Just-released Global Startup Ecosystem Report
The Global Startup Ecosystem Report Released Today and Announced by Mayor Ed Gainey in Pittsburgh Highlights Pittsburgh’s Many Points of Tech and Economic Growth
Today, Mayor Ed Gainey announced that Pittsburgh has been highlighted in the world’s most comprehensive report on global startup and economic growth, the Global Startup Ecosystem Report (GSER) as the #13 global “Emerging Ecosystem” overall. Pittsburgh’s jump from #23 in 2021 to #13 in 2022 indicates the significant and dynamic progress that the region has made in just one year.
County Executive Rich Fitzgerald recognizes the significance of the GSER’s findings on not just the City of Pittsburgh, but the entire Pittsburgh region, noting that “The Startup Ecosystem Report underscores what we’ve seen here in the Pittsburgh region over the last few years - we have a growing ecosystem that has access to talent, is affordable, and is increasing in diversity. We are beginning to pull ahead of peer cities, and have moved up the list of the world’s emerging ecosystems from # 23 to # 13 in just one year. That’s due in great part to our outstanding universities and the amount of research happening here which makes us an attractive location for new and growing businesses.”
“Pittsburgh is on the rise among global ecosystems where startups can launch, grow and scale. This rise is not by accident.” Says Mark Anthony Thomas, President of the Pittsburgh Regional Alliance. “ It’s the result of the deliberate care and feeding of an ecosystem that plays to Pittsburgh’s strengths – AI, robotics, advanced manufacturing and life sciences, among others – and that’s committed to serving the entrepreneurial community. Having Pittsburgh recognized again by Startup Genome on its Global Startup Ecosystem Report sends a strong signal that Pittsburgh is the place for entrepreneurs, founders and venture capitalists who want to build something remarkable. They are key to our region’s economic success, and we look forward to welcoming even more of them and supporting them in realizing their goals.”
Pittsburgh’s big jump in ranking can be, in part, explained by “the significant exits we saw in the last year (e.g., Duolingo, Aurora, Cognition Therapeutics, Stronghold Digital Mining) giving our score a huge boost. The way Startup Genome calculates key factors like ecosystem performance, market reach, and even talent and experience are influenced by the number and size of exits in the ecosystem.” Says Jason Griess, Ecosystem Director at InnovatePGH. Even with these big exits, Griess believes that “in the next two years, I think we’ll continue to see our ranking improve. Startup Genome uses data from the previous 2.5 years, so the exits we saw in 2021 will continue to count in our rankings for at least the next two releases of the report. Since our ranking is relative to other Emerging Ecosystems, the big question is whether we are able to capitalize on the exits we’ve seen, accelerate our support for growing companies, and outpace the growth of our peer ecosystems.”
Given the current economic climate, this report emphasizes the resilience of the Pittsburgh tech ecosystem. "This is an incredibly tight labor market and startups need every advantage to attract and retain top talent," said Kelley Benson, VP of Human Resources & Inclusion for Innovation Works. "Pittsburgh's improved ranking among the world's emerging startup ecosystems gives us an edge when our companies are vying for tech talent that can choose to work anywhere. In the same vein, this is a great time to make diverse hiring a practice that is a constant state. Weaving diversity into the fabric of an organization starts by broadening our definition of inclusion. Look within startups, larger companies and departments to identify who is missing and become intentional about filling that gap!"
For now, Pittsburgh is ranked as the 13th “Emerging Ecosystem” globally and 5th North American Emerging Ecosystem in “Talent and Experience”. To be ranked in the top 40 global ecosystems overall, Pittsburgh will need to see improvements in ecosystem value, exits, and startup success on par with the top ecosystems. The report highlights opportunities for even more advancement, like early stage funding. Pittsburgh will continue to stay focused on these opportunities to ensure momentum and continued growth.
The GSER was created in partnership with the Global Entrepreneurship Network, Dealroom and Crunchbase. The 2022 Edition provides insights and guidance to public and private leaders on how to foster thriving startup communities — the #1 engine of job creation and economic growth.
The full report is available here: https://startupgenome.com/report/gser2022
About InnovatePGH Partnership
InnovatePGH is focused on accelerating Pittsburgh’s status as a global leader in the innovation economy through programs and initiatives such as ASTRI, Avenu Workspaces, Pittsburgh Innovation District, the University Talent Alliance and MovePGH. The InnovatePGH partnership is a next generation public-private partnership powered by a coalition of civic institutions representing the regions’ university, business, philanthropic, and government leadership.
About Pittsburgh Regional Alliance
The Pittsburgh Regional Alliance (PRA) is the economic development affiliate of the Allegheny Conference on Community Development. The PRA attracts strategic investment opportunities and talent to the 10-county southwestern Pennsylvania region and supports the growth of existing regional businesses. The PRA assists companies that have an interest in investment in the Pittsburgh region and provides services such as real estate identification, data and information support, and connections to local employers, schools, and government at no cost to the company.
About Innovation Works
Innovation Works (IW) provides investment and assistance to the Pittsburgh region’s most promising technology startups and is the only regional investment fund focused solely on this region, investing more than $113 million in over 600 companies since its formation in 1999. This activity makes Innovation Works the most active seed-stage investor in the region and one of the country’s most active overall. Innovation Works is one of four centers in the statewide Ben Franklin Technology Partners network that helps build PA’s innovative companies, diversify the state’s economic drivers and capitalize on the world-class research conducted at the renowned universities throughout the state. IW is partially funded by the Commonwealth’s Ben Franklin Technology Development Authority. Helping software, hardware and life sciences companies get to their next stage of economic growth, IW provides investment, expert guidance, and access to networks to a wide array of founders. In an anonymous survey self-reported by founders and leaders of portfolio companies to receive IW investment in the past ten years, nearly 60% of those leaders were women and/or people of color. To learn more about Innovation Works, the organization’s commitment to inclusive innovation, and more please visit www.innovationworks.org.
About Startup Genome
Startup Genome is the world-leading policy advisory and research organization for public and private organizations committed to accelerating the success of their startup ecosystem. We have advised more than 125 clients across six continents in 45+ countries to date. Working side-by-side with 300 partner organizations, our frameworks and methodologies have become instrumental to define and execute robust policies and programs that drive lasting change. Many of the world’s leading governments and innovation-focused organizations have joined our knowledge network to cut through the complexities of startup ecosystem development and fuel sustained economic growth. Follow our work at startupgenome.com, and follow us on LinkedIn and Twitter.
Contacts:
Terri Glueck
Innovation Works
412-818-8191
Phil Cynar
Pittsburgh Regional Alliance
412-281-4783, ext. 4573
pcynar@alleghenyconference.org
Jason Griess
InnovatePGH