Pittsburgh tech companies raised $3.12B in 2023

Tech economy fundraising in Pittsburgh resulted in $3.12 billion in aggregate funding in 2023, a 203.3 percent spike from the year before, according to a recent report released by Ernst & Young LLP and Innovation Works.

The investment was second only to 2021’s $3.59 billion. Growth was driven by a nearly 800 percent increase in corporate investments.

More than 130 companies attracted investments, especially robotics and autonomous vehicle companies. The average disclosed deal was $27.1 million, a 300 percent increase from 2022.

Nationwide, fundraising decreased 29.6 percent year-over-year.

“The strength and resiliency of the regional tech ecosystem was reaffirmed in 2023, despite macro headwinds and significant contraction in venture funding nationally,” Ven Raju, Innovation Works president and CEO, said. “Almost every indicator related to the local fundraising environment saw a material uptick,” While we saw some outsized investments in robotics and autonomous vehicle companies in 2023, the three-year rolling averages suggest sustained and broad-based growth for the region. The 2023 data also suggests emerging trends in automation and AI, key regional clusters, are helping to catapult investment in Pittsburgh to Tier 1 levels.”

Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Ltd.

Innovation Works is the most active early-stage investor in Pennsylvania.