Pittsburgh Breaks Into Top 10 U.S. Markets for AI, Autonomous Vehicle Venture Investment

PITTSBURGH--(BUSINESS WIRE)--Artificial intelligence is commanding the venture market with more than half of nationwide VC activity, and Pittsburgh has emerged as one of the leading markets for startups in the field. Pittsburgh ranked seventh nationally last year in AI and autonomous vehicle venture funding on a per capita basis and 12th in deal count in those sectors, despite ranking 25th in population, according to the 14th annual investment report released today by Ernst & Young LLP (EY US) and Innovation Works.

The report finds that 124 unique Pittsburgh companies raised approximately $2.29 billion in 2025, the third-highest annual total on record for the region and the fifth straight year surpassing $1 billion. Institutional venture capital investment reached a record $2.06 billion, more than doubling 2024’s total.

Sector mix further underscores what is driving the region’s growth. Hardware and robotics accounted for 51.8% of total dollars invested in Pittsburgh’s tech economy in 2025, followed by life sciences (34.3%) and software (13.6%). By deal count, the split was more balanced: 27.4% in hardware and robotics, 30.7% in life sciences, and 37.1% in software.

Major rounds in robotics, deep tech, and AI validated the region’s ability to produce companies that can attract and absorb large-scale capital. Ten startups exited in 2025, all through acquisitions, reinforcing the region’s reputation as a pipeline for strategic buyers. The average disclosed VC deal size in Pittsburgh was $32.7 million in 2025, nearly double the 2023 average of $16.9 million. Notable financings included a $500 million Series B for Skild AI, $565 million across two raises for Abridge, a $400 million Series C for Agility Robotics, and a $122 million Series D for Gecko Robotics.

“Pittsburgh has established itself as a global leader in robotics and artificial intelligence, built on decades of world-class research, talent development, and innovation. We are now beginning to see those long-term investments translate into meaningful commercial opportunities and significant institutional capital,” said Ven Raju, President and CEO of Innovation Works. “As global demand for these technologies accelerates, our region is uniquely positioned to lead. Sustaining this momentum will ultimately depend on our ability to deliver measurable outcomes and strong returns.”

The report notes that, despite record VC totals and 56 first-time investors in the region last year, the estimated supply of uncommitted local venture capital in Southwestern Pennsylvania is only $23.2 million, a 10-year low shaped by constrained fundraising and national capital concentration.

“2025 marked a rebound in U.S. venture activity, but the capital was increasingly concentrated, particularly in AI,” said Darrell Smalley, Pittsburgh Office Managing Partner, Ernst & Young LLP. “Pittsburgh’s ability to earn a Top 10 position in advanced technology investment speaks to the strength of its research engine, technical talent, and companies that are scaling to meet the moment.”

The report also highlights the region’s deep research base, citing more than $14 billion in research funding attracted by local universities over the past decade. In 2025, the University of Pittsburgh’s total research budget surpassed $1.2 billion, and Carnegie Mellon University’s research budget totaled $551.2 million.

Read the full report for complete findings on Pittsburgh’s technology investment landscape.

About Innovation Works

Innovation Works is one of the most active early-stage investors in the country and the most active in Pennsylvania. Since its inception of the seed fund in 1999, Innovation Works has invested in over 780 companies that have gone on to raise $3.3 billion in follow-on funding. Portfolio companies have generated and retained over 20,000 jobs in Pennsylvania. Innovation Works is part of the Ben Franklin Technology Partners network, which has catalyzed economic growth over the last 30 years by providing access to capital and networks that help foster innovation and technology-based economic development in Pennsylvania. Learn more at innovationworks.org.

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