The past year has been a tumultuous time to run a tech startup.
A previous decade-long showering of venture capital dollars has turned into an apparent drought, while pandemic-induced demand that led to rapid payroll growth has since subsided, leading to widespread layoffs and even complete shutdowns of companies. And just a few weeks ago, a bank that almost exclusively courted and catered to many of the nation’s startups collapsed in a matter of 36 hours.
Yet, Pittsburgh's startup scene appears, at least for now, to be avoiding much of this fallout. While securing significant local venture capital remains a challenge for many, outside investment in the region's startups grew last year. And despite Pittsburgh's share of shutdowns and layoffs, local experts report the sector's overall health remains strong and that many individuals who have been affected by job losses have since rebounded and taken on new work in the region.
It's anyone's guess as to what might come next for this sector, but a select group of Pittsburgh startups are poised to see significant gains in the coming year.
Listed below are 10 Startups to Watch in 2023 from Pittsburgh Inno. These budding enterprises have been selected following suggestions made by experts in the startup community and an editorial evaluation by staff at Pittsburgh Inno and the Pittsburgh Business Times.
To qualify, these startups had to demonstrate exceptional potential in the year ahead, be that through planned employee growth, significant product launches, the obtaining of outside investment or something else that highlights an extraordinary future to come. They also must have started operations within the past five years and cannot have closed on a Series B or higher funding round.
This year's cohort, which builds on the inaugural group from 2022, is innovating in unique ways. Some are working in health care as others build platforms for businesses or products for people. About half are already generating revenue and on a path to profitability, while others have indicated plans that they’ll start doing the same soon.
Follow the links below to see these startups' visions for the year ahead, hear from their founders and learn more about them in their profiles.
Abridge AI
Why we're watching: CB Insights named Abridge to its Digital Health 150 list of the most promising medical startups in the country. Abridge is looking to disrupt a significant cause of burnout in a medical field that relies on traditional documentation solutions, which the startup has said tends to be too expensive or too slow to keep up with the needs of modern health care organizations. With Abridge’s platform, clinicians and patients can benefit from real-time summaries and structured documentation. In March, the startup also announced its largest rollout to date of its tech via a partnership with The University of Kansas Health System, which will see Abridge’s platform deployed at up to 140 locations to be used by up to 1,500 practicing physicians across the Kansas City, Kansas-based health system.
[Read Abridge's full profile.]
Allvision IO
Why we're watching: The use of AI and machine learning are increasingly popular topics across industries, and Allvision’s processing software is positioning itself to aid businesses with little to no AI or ML knowledge. Additionally, many future technologies — like autonomous vehicles, robotics, augmented reality and smart cities — cannot exist without a digital representation of physical infrastructure, and Allvision is trying to address and solve this problem, landing paying customers in the process and generating over $1 million in annual revenue.
[Read Allvision's full profile.]
Culturora
Why we're watching: Previously, the startup has placed as a finalist in the McGinnis Venture Competition at Carnegie Mellon University’s Swartz Center for Entrepreneurship, and it also has participated in CMU’s prestigious VentureBridge program. It’s considered to be one of the more promising active startups to come out of CMU in the past few years.
[Read Culturora's full profile.]
DisSolves
Why we're watching: The startup is finalizing the commercial manufacturing of its packaging this year. It also has food and beverage brands signed up to use the packaging, and people will be able to see products on store shelves using DisSolves packaging soon.
[Read DisSolves' full profile.]
Farm to Flame Energy
Why we're watching: The startup said it has corporate partners lined up for large-scale, carbon-neutral energy generation to be deployed soon. It’s looking to onboard several employees in the coming year to try and deliver over 1 megawatt of carbon-neutral energy.
[Read Farm to Flame's full profile.]
Kloopify
Why we're watching: Kloopify’s unique procurement solution addresses a growing need for businesses that are looking to become more sustainable. With its recent funding round of $1.5 million, Kloopify has the potential to become a significant player in the budding sustainability industry. The revenue-producing company is looking to hire additional employees throughout the year so it can keep up with its growing customer demand.
[Read Kloopify's full profile.]
Korion Health
Why we’re watching: With their current funding round and plans to grow, Korion Health is well-positioned to make a significant impact in the industry and possesses the potential to improve the lives of millions of people worldwide. The startup already has participated in several local programs including those from Ascender and LifeX. It also has filed a provisional patent for its affordable electronic stethoscope and is one of the University of Pittsburgh’s Big Idea Advantage Fund recipients.
[Read Korion Health's full profile.]
MindTrace Technologies
Why we’re watching: Like its Startups to Watch peer Abridge AI Inc., CB Insights named MindTrace to its Digital Health 150 list of the most promising medical startups in the country. MindTrace has created a unique tool for the medical field that has the potential to greatly benefit neurosurgery patients. The startup said its focus on pre-operative planning and cognitive outcome prediction aligns with a rising trend of personalized medicine and precision surgery. With its recent funding from the RK Mellon Foundation, MindTrace can continue to expand its reach and partnerships, particularly with an upcoming consortium of seven hospitals.
[Read MindTrace Technologies' full profile.]
Resilient Lifescience
Why we're watching: With opioid-related deaths on the rise over the past decade, the need for innovative solutions that address the crisis remain pressing. Resilient Lifescience’s wearable device has the potential to save countless lives given its ability to automatically detect and administer naloxone, which will likely make it a novel response to the fight against opioid overdose deaths. The company is in the process of raising a $1.5 million seed round, which will enable it to take the early forms of the device from proof-of-concept to production-ready and to execute early trials to demonstrate its effectiveness.
[Read Resilient Lifescience's full profile.]
VELO.AI
Why we’re watching: VELO.AI’s mission to improve road safety through the use of smart sensors and autonomous vehicle technology is particularly relevant in today’s world, where the number of accidents caused by distracted driving and other factors remains an ongoing issue. The startup’s Copilot product has the potential to significantly reduce the number of bicycle accidents on roads and make commuting safer for all. The startup is currently conducting a preseed round and has received investment from the Richard King Mellon Foundation’s social impact fund, as well as Reinforced Ventures.
