In July 2021, Innovation Works, the region’s largest seed-stage investor, named Ven Raju to serve as the organization’s new chief investment officer as well as managing director of Riverfront Ventures, a $24 million fund from IW that invests alongside venture capital firms. While working remotely for IW out of Philadelphia over the past several months, Raju has grown fond of the Pittsburgh startup ecosystem from a distance. Now, he is looking forward to immersing himself into the scene after having officially moved to the region in December alongside his wife and two children.
What is a typical day like for the chief investment officer at Innovation Works?
Like many investors, about a third of my day is spent talking with entrepreneurs in terms of their plans — in terms of upcoming capital raises or where they’re at in terms of the funding life cycle — and getting a better understanding of what their capital needs are, or, if they have other needs, then rerouting those within the context of Innovation Works or beyond. The other third of my day is spent talking with investors, both ones we have relationships with as well as new investors here in the region and beyond who are very much interested in what’s happening in the Pittsburgh ecosystem and furthering those relationships. Then the other third of my day is looking at deal flow that’s coming into Innovation Works and helping to deploy funds on part of our Innovation Investment Fund (IIF), which makes seed to early stage investments into companies in the region.
What do you enjoy most about what you do?
I love working with entrepreneurs. That drive, that determination, that grit — they are on the ground really making it happen and their excitement and enthusiasm, it’s pervasive, and just to be around that energy is really what I enjoy the most about being in venture.
In your opinion, what is the best way for a startup to attract the interest of an investor?
Wow, that is the I was going to say million-dollar question, but now I think billion is the more apt term in this day and age. It depends on the stage, but essentially VCs are looking for product, market, fit — is there a reception (from) part of the market in terms of the offering that is provided by the company. That reception can be characterized in many ways. For early-stage companies, it could come in the form of pilots. For more growth-stage companies, that could come in the form of revenue traction. By and large, most investors look to see what kind of market feedback the company is getting because, ultimately, the market drives commercial viability and commercial success, and so we are looking for early indicators of that. … Certainly we look at other attributes, which are of equal importance in terms of the team, in terms of past successes of the team or founding members, their ability to grow and scale organizations, as well as the support faculties that they built around them, including their board and advisory network, which is really the company’s support system as they evolve.
What types of capital do you see as a challenge for startups to attract in Pittsburgh?
In terms of growth equity capital, the region has, I wouldn’t say a shortage of growth equity capital, but I think there’s a need for more growth equity capital and that stems from a number of things, one being that it’s a positive indicator that companies are being started here and opting to stay here and grow in the region, which precipitates the need for that type of growth equity capital. Anecdotally, I’ve heard stories of companies that were started here and then subsequently moved out to the West Coast or East Coast in search of capital or in search of that cluster that they thought would help them grow. … I think growth equity capital is something that the region could use more of and we’re certainly seeing an inflow of that from outside of the region, but I think bolstering that in terms of local investment capital would be a huge step forward for us.
You’ve had more than 20 years of experience in venture capital. What stands out as a defining moment for you?
The pace of technological innovation, just in my 15-20 year tenure within venture, has far exceeded my expectations. That goes in all realms, whether it’s health tech, whether it’s enterprise B2B software, whether it’s AI, robotics. The pace of innovation, the rate of technological change is beyond anything I could have expected when I started my career in venture.
Where’s your ideal place to grab something to eat or drink?
Well, in Pittsburgh, I am still a newbie but (Innovation Works is) at 2 Allegheny Center, so there’s the Federal Galley there, which I’ve frequented. I’m very partial to the restaurants in there. I really want to explore the restaurant scene (in Pittsburgh). Philadelphia has a very vibrant restaurant and BYOB scene, and my wife and I love nothing more than to go out to a nice restaurant and have a bottle of wine.
What observations have you made about Pittsburgh during your time here?
People are just nice, they’re good people, I don’t know how else to put it. There is a genuineness and authenticity to the people that I’ve met, both in my personal and professional capacities that it’s really refreshing. Even in an off-hand or spontaneous conversation, you’re able to really connect, and that level of authenticity I find refreshing particularly coming from the Northeast Corridor where it’s a little more, let’s just say, how do I put it, a little more hubbub.
What type of music do you enjoy?
I’m a big fan of the 80s. I like The Police, I like Led Zeppelin.
BIOBOX
Title: Chief investment officer, Innovation Works; managing director, Riverfront Ventures
Age: 42
First job: Clerk at a public library
Education: MBA, University of Pennsylvania; M.S., University of Oxford; B.S., George Washington University
Current residence: Wexford
Family: Carolyn, wife; two daughters, ages 2.5 and 1
Hobbies: Traveling, tennis and reading
Causes: “Carolyn and I are partial to children’s causes and volunteer/support children’s hospitals in the New York and Philadelphia area. We are looking forward to getting involved in the Pittsburgh community.”
