Innovation Works Inc., one of Pittsburgh's most active and largest seed-stage investors for startup companies, has announced the appointment of its new CEO and president.
A promotion from within, Ven Raju has now been tasked with leading the organization effective Oct. 6 after previously serving as IW's chief investment officer as well as the managing director of Riverfront Ventures, which maintains a $24 million fund from IW that invests in startups alongside venture capital firms. He first joined IW to take on those roles in July 2021.
Raju succeeds outgoing CEO and president Rich Lunak, who held the post for 17 years after announcing plans to retire by year's end in February. IW said Raju bested over 135 applicants who applied for the role following a national search, which IW hired global consulting firm Korn Ferry to conduct.
"It is incredibly exciting to be a part of an organization that is so integral to the startup ecosystem, integral to the regional economy where we're able to really think about and execute on how we can better support these companies and how we can better support the region in these changing dynamics and backdrop," Raju said. "I step into this role focused on our ability to effectively deploy resources, capital and otherwise to our companies and our founders so as the ecosystem evolves, we're going to strive and work hard to ensure that our service delivery model is meeting the needs of our companies and our stakeholders and our partners so that we can derive the greatest impact for our companies and derive the greatest impact for the region."
Among the many hindrances facing Pittsburgh startups seeking investment, Raju said a challenge that he has top of mind is the lack of local dollars available to these burgeoning companies. He said he'll be drafting up potential solutions to this obstacle as one of his first priorities on the job but it's a problem that will take cooperation across the local startup ecosystem to solve.
"How do we bolster local sources of capital; whether it be on the angel side, whether it be on the early side, whether it be on the growth side? That is something that's near and dear to me," Raju said. "It's not to say that IW will be the one to provide that kind of indigenous capital bolstering or increase, but rather how do we think about catalyzing private sector capital, how do we think about channeling that to our startups."
With more than 25 years of experience in venture capital and startup investment funding, Raju said this appointment is the most significant of his career. He'll immediately be tasked with overseeing the recent fresh infusions of significant capital into the organization, including over $19.6 million from Pennsylvania's Direct Venture Investment program and $14.2 million as part of the Build Back Better challenge the region won in September, among other recent funding scores.
He declined to characterize his planned leadership style as being either similar or different to that of Lunak's. Instead, he said he plans to lead IW through an evolving ecosystem — one he described as robust and vibrant compared to other cities — to ensure IW's relevance in the local startup scene remains.
"To that end, one of the things that we're really thinking about is our service delivery model," Raju said. "How do we ensure that we are appropriately supporting companies at all stages of the business and development lifecycle? I think that that evolution is going to be what's distinct in terms of IW and how it supports these companies and not so much the difference between Rich and me."
In a statement, Lunak praised the appointment of Raju as his successor.
"Ven has vast investment experience and connections as well as a hands-on background working with startups and entrepreneurs at every level of development," Lunak said. "Not every worthwhile company will go on to attain follow-on funding – and that’s OK. Ven has the right experience, empathy and know-how to support our entire portfolio. I cannot be more excited about what the future holds for Ven and his vision for IW."
Catherine Mott, chair of IW's board of directors, also expressed her optimism for Raju's appointment.
"The board is confident that Ven’s combination of skills and experience will continue to drive the IW legacy of nurturing and growing the entrepreneurial ecosystem built over the last 40 years," Mott said in a statement. "Ven is going to be a tremendous advocate for our portfolio companies and our regional partners who are committed to supporting our thriving startup ecosystem."
Prior to joining IW, Raju served as the vice president and managing director of Northwell Ventures, a corporate venture group of New York-based health care provider Northwell Health. He also held roles as a partner at Choate Capital Partners and Chestnut Ventures.
Raju holds an MBA from the University of Pennsylvania, a master's from the University of Oxford and a bachelor's from George Washington University. He resides in Wexford with his wife and two daughters.
