Innovation Works Makes 100th New Investment in Seed-Stage Technology Companies

Portfolio Reaches Other Critical Milestone:

$100 Million in Follow-on Funding in 2007

Jan 17, 2008, 00:00 ET from Innovation Works, Inc.

    PITTSBURGH, Jan. 17 /PRNewswire-USNewswire/ -- Innovation Works, the
 Pittsburgh region's most active and largest seed-stage investor in
 technology start-ups, invested in its 100th company since the inception of
 the organization's seed fund in late 1999. The portfolio companies also
 reached an unprecedented single-year milestone of attracting more than $100
 million in follow-on investment from private and other sources in 2007.
     In total, Innovation Works (IW) has invested more than $35 million
 since 1999, with portfolio companies going on to raise more than $425
 million in follow-on financing in the same period. Some of the earliest IW
 investments are now paying off in terms of additional venture capital,
 company growth, product sales, and local employment.
     Innovation Works made more first-time investments in 2007 than any
 other single year since its inception, adding 17 new companies to the
 state-sponsored organization's investment portfolio and surpassing the
 100-company mark. "With 17 new companies added to the investment portfolio
 in 2007 -- and more than 100 since its inception -- Innovation Works has
 proven to be a statewide leader in early-stage technology investment," said
 Dennis Yablonsky, Secretary of Pennsylvania's Department of Community &
 Economic Development. "The milestones reached by Innovation Works and their
 portfolio companies demonstrate the organization's ability to develop
 companies that affect the most innovative industry sectors in the world."
     One of those innovative companies is Aethon, Inc., maker of the robotic
 "Tug" that automates supply chain logistics in hospitals. Aethon received
 one of IW's first investments in 2000. Since then, the company has doubled
 revenues every year, employs over 100 people (75 employed at the company's
 headquarters in Robinson Township), has more than 100 client hospitals
 throughout the country and has raised $20 million in venture capital. "The
 entire start-up community has grown substantially since our first
 investment from Innovation Works," says Aldo Zini, President and CEO of
 Aethon. "It's fantastic that 100 start-ups have received investment from
 Innovation Works and that those companies have hit a milestone like
 attracting $100 million in outside money in a single year. It really speaks
 to the growing strength of our technology community in every way -- the
 research, entrepreneurial growth, availability of capital and the talent
 that is here."
     In 2007, Innovation Works added the following companies to the
 investment portfolio:
     -- Accipiter Systems, Inc.
     -- Alertek, LLC
     -- BIOSAFE, Inc.
     -- Bossa Nova Concepts, LLC
     -- CastGrabber, LLC
     -- Ciespace Corporation
     -- Cognition Therapeutics, Inc.
     -- Concurrent Electronic Design Automation, LLC
     -- Coventina Healthcare Enterprises, Inc.
     -- ImpactGames, LLC.
     -- MobileFusion, Inc.
     -- Pertuity, Inc.
     -- RedPack Logistics, Inc.
     -- ShowClix LLC
     -- Sim Ops Studios, Inc.
     -- SMASH
     -- ThermalTherapeutic Systems, Inc.
     In addition, Innovation Works re-invested in the following portfolio
 companies to continue fueling their growth in 2007:
     -- ClearCount Medical Solutions, Inc.
     -- DesignAdvance Systems, Inc.
     -- Knopp Neurosciences Inc.
     -- Proteopure, Inc.
     -- Cellatope Corporation (formerly StageMark, Inc.)
     -- TowerCare Technologies, LLC
     "2007 was a banner year for Innovation Works; but more importantly, it
 was a strong year for the young technology companies here that hit
 extraordinary milestones of their own," said Rich Lunak, President & CEO of
 Innovation Works. "In previous years, IW invested in seed-stage companies
 that became the region's technology powerhouses: FORE Systems, Automated
 HealthCare, VoCollect, Precision Therapeutics, and others. These companies
 have had a significant impact on the region's economy and talent pool. Now
 there are strong signs of growth in the current portfolio of start-up
 companies -- one of the best indicators being that the majority of local
 companies that received venture capital in the past two years have been
 Innovation Works portfolio companies. This bodes well for their future
 growth and solidifies Pittsburgh as an area for additional private

SOURCE Innovation Works, Inc.