Innovation Works details investments

BYLINE: Jennifer Curry

Innovation Works directly invested $5.1 million in 52 companies in 2006 and assisted 230 companies with business expertise, the organization said Tuesday in releasing its annual report.

The number of new companies applying for funding rose from 76 in 2005 to 111 in 2006, the economic development organization said in its second annual meeting, held at Vivisimo's headquarters in Squirrel Hill.

Over the past seven years, Innovation Works has invested $31 million into 91 companies.

"I think the local entrepreneur community is showing great momentum," said Rich Lunak, president and CEO of Innovation Works. "We think the companies that make up our portfolio are the future engines of growth for our region."

The group also announced that follow on-investment, defined as further funding, such as venture capital, raised by Innovation Works seed fund companies, was $92 million, up from $69 million in 2005.

"The follow-on funding shows these are investment-worthy companies that are growing," Lunak said. "2006 was a great venture year for our region. Almost every metric was up year over year."

Eric Close, president and CEO of RedZone Robotics, which has received $600,000 in Innovation Works funding, said he's found Innovation Works' internship program, business assistance and new human resources program to be valuable for RedZone.

"I realized to get further funding in this city, ... you had to become an Innovation Works company," he said. "I found them to be valuable after initially being a skeptic. ... I think it's a true asset to the community."