I’m from Philadelphia and to us Philadelphians the little town of Pittsburgh, if we think about it at all, is an afterthought, a city somewhere west in the wilds of Pennsylvania. Where the Pittsburgh Pirates used to terrorize the Philadelphia Phillies. And something about steel and glass and Andy Warhol.
Andy Grew Up in Pittsburgh. They named a bridge after him.
But there’s something remarkable happening in Pittsburgh and the entire east-coast venture community would do well to take notice. 3 Rivers Venture Fair is putting Pittsburgh on the map (oh, and so is the G-20 Summit, but that’s no big deal).
I’ve been coaching companies for the 3 Rivers Venture Fair (”3RVF”) since early July, sponsored by my pals at the law firm Morgan Lewis & Bockius. Of all of the venture fairs I’ve coached for, this is the strongest batch of companies I’ve seen. Every one is solid. Big markets, strong teams, many with significant revenue, differentiated technology. Usually when I work with a whole batch of companies at least a couple are clearly duds. Not this batch.
About half are from the Pittsburgh area, nurtured by the area’s surplus of brainy engineers and scientists (Carnegie Mellon, University of Pittsburgh). Many are from Ohio. And a high percentage–more than half–are life sciences companies with roots in research technology from places like the Cleveland Clinic and the Mayo Clinic.
I shared my discovery with 3 Rivers’ Executive Director, Pittsburgh icon Kelly Szejko. We puzzled together about what’s going on because she’s also seeing signs of a ground swell of venture goodness. Despite the sharp downturn in the venture industry, she said, sponsorship for 3RVF is up–including more VC firms than ever. Investor registrations are up, and attendee registration is on track to be the best ever. She’s expecting more than 500 people to attend the event.
I think Pittsburgh has finer architecture than Philly. I took this pic.
I have a few theories as to what’s going on. 3RVF is benefiting from a curious “all the tourists have gone home” effect of the current recession–i.e. only the strongest companies are still in business. But I hear other venture events are struggling to attract good companies, sponsorship dollars, and all the real investors are hiding under the bed. So why is Pittsburgh partying like it’s 1999?
My theory, based on personal observation, is that 3RVF has got the attitude right. I worked with 3RVF last year and constantly remarked to anybody who would listen that something different. It seems that the whole Pittsburgh venture community was pitching in and pulling together. The event exploded with positive energy. But what really stuck with me was the way they all went out of their way to make the entrepreneurs feel like royalty.
There it is. The secret that most other venture fairs I know don’t get. The entrepreneurs are the reason for the season. They aren’t product. They aren’t snot-nosed kids. They’re the wealth creators that all the rest of the ecosystem–service providers, investors, economic development–depend on.
It’s my theory that entrepreneurs sense this and spread the word. They spread the word that 3RVF is worth going to. The quality of the companies gets better each year, more deals are done, investors come back for more, service providers do business and line up to support the next one. The friendly cohesion in the Pittsburgh community amplifies the positive feedback loop.
So the 3 Rivers Venture Fair, a bloom amidst the desert of economic calamity, isn’t a freak. It’s the result of right attitude.
I’m convinced that attitude toward entrepreneurs is the key to venture fairs, economic development, and venture coaching. I’ll come back to it again in future posts.
And stay tuned. I’ll be blogging more about 3RVF leading up to, and during, the event. As I discover more of the secrets of the Pittsburgh Surprise I’ll post them here.
3 Rivers Venture Fair happens September 15, 16, 2009 at PNC Park (of all places) on the banks of one of the 3 rivers that flow through Pittsburgh.
(Fun fact: Pittsburgh has more bridges than any other city in the U.S.)
(Quiz: Can you name the 3 rivers? Answer in my next post.)
Steve,
I am honored that you think so highly of our event. I speak on behalf of the Pittsburgh Venture Capital Association Board, the Co-Chairs of the Fair as well as over 225 committee members when I say thank you. A lot of energy, talent and heart goes into this Fair. It truly is a regional effort with a lot of great people – you being one of them. The companies truly are taken to another level with your assistance and knowledge. I would be remiss if I did not thank Morgan, Lewis & Bockius for allowing the entrepreneurs (at their expense) to utilize your talent.
Our primary goal is for the entrepreneurs to be successful – if they are not – what is the sense of having a 3 Rivers Venture Fair. We, along with the entrepreneurs work hard to make that happen.
Thank you again for taking the time to write about the 3 Rivers Venture Fair.
Kelly
Steve:
A great story and very accurate based on our experience with the fair over the past several years. This event continuously has an aura about it that speaks volumes to both the entrepreneurial spirit and the investor community in our region.
What this event has had since its inception is a director who has more passion for her responsibilities than anyone you’ll meet. It takes a lot of great efforts by many companies and many people to make an event like this so popular, however, Kelly Szejko is the centerpiece on the table that keeps the spirit of this particular event so high. Her passion for success is unmatched.
There is no stone left unturned for this 2-day event, every committee is staffed with a who’s-who in the business community and the participation levels bring out the highest quality individuals. Our company has been honored to participate in this event for the past several years, there is no reason to believe it cannot continue to grow and become “the model” for other venture fairs in the future.
Go Pirates!
Kelly M.
Steve:
Great post and thanks for the tremendous value you have added by helping presenting companies fine tune their presentations. I am a native Philadelphian who made the treck across the Allegheny mountains nearly 30 years ago and I have had the pleasure of seeing the Pittsburgh and Ohio venture community hit the inflection point you have articulated. The quality of startups has increased dramatically over the years and the Three Rivers Venture Fair is a great showcase for these emerging technology / health science companies. I encourage all of your readers to come and see first hand what is happening.
Paul
Steve,
Welcome to the ‘Burgh, as those of us here call it when we’re kidding around. What you described is not just within the entrepreneurial community – it’s the entire community. We pull together to make our region an even better place to live.
Having been a presenting entrepreneur at numerous venture fairs (including in Philadelphia!), I agree with your observation of how the entrepreneurs are treated. The other events seem to be conducted for the pleasure and enjoyment of the VC community, with the startup companies being the ‘comic relief’ in between all their socializing and networking.
Kelly ‘gets it’ though and never misses an opportunity to let everyone know WHY the 3RVF is being conducted and WHO it is really for. Doing that has ensured the success of the event by making it attractive to both entrepreneurs AND investors. The latter group wants to be there because they know there WILL be good deals and some potentially great companies on display.
Oh, and your involvement is truly priceless! All of the participating companies benefit greatly from your assistance in honing their message.
Thanks for the post, Steve! Glad you are finding the pool water warm as you dive into Pittsburgh…
3RVF is a good event, but it is only the tip of the iceberg of interesting things going on in our fair city. I wrote a post a few months back about other ways to get plugged into the ecosystem here in Pittsburgh – you can find it at (beware: shameless plug) http://www.pittsburghventures.com/2009/04/tapping-into-the-pittsburgh-entrepreneurial-ecosystem/.
We are still at step 2 of 10 – but given enough time and continued hard work, we will live up to the entrepreneurial history that has been a part of Pittsburgh ever since Frick, Carnegie, and Mellon gave birth to businesses here.
Thanks for taking note. See you in September!