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bioBioEnterprise, the Cleveland-based biomedical business formation initiative published their Midwest Health Care Venture Investment Report on Friday. The health care venture field is beginning to pick up. In terms of number of companies funded, Pittsburgh leads the pack with twenty-four totally almost $40 million in funding.

This high concentration stands out. In comparison the deals are smaller than the top city (in terms of amount funded) but the number of seed type funding provided is a good sign for Pittsburgh.

Comprising the report were mainly biopharmaceutical (48%) and medical device (38%). The larger Pittsburgh deals included Foundation Radiology Group, ALung Technologies, ClearCount and BodyMedia. The seed deals are hopefully companies to look for, including Almedtrac, Blacktown NC and Flexicath.

[via Pittsburgh Business Times]

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245b98dMalia Spencer has a new article up on Pittsburgh Business Times about ITSqc spinning out of CMU. While it isn’t exactly your typical sin-off, it does bode well for CMU and Pittsburgh. ITSqc works with companies such as IBM and Accenture to create models around the IT service sector.

“The research was done and the models were created and focus shifted from creating and gathering, which universities are great at, we produced the models and now it’s a more commercial adoption issue,” said company director Jeff Perdue of the decision to spin-off.

Now that the shift has moved from research to commercialization, Jeff thinks it’s time to spread their wings and fly. IT services is a maturing industry, it was only a short amount of time until a network of companies that support it was created. Not surprisingly, it came out of CMU. Good luck, ITSqc.

[Pittsburgh Business Times: IT service company ITSqc spins out from CMU]

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385776-200x300 The iBurgh app is coming to the Android Market the third week of January, at the latest, so says Pittsburgh City Councilman Bill Peduto. “iBurgh started as a conversation between Priya Narasimhan and I. I approached her because of our shared interest in hockey, and once I saw what she could do with YinzCam I wanted to hear her thoughts on opening up government.”

Peduto isn’t stopping with the Droid or just iBurgh. The Blackberry iBurgh app is next. And in 2010 Peduto hopes to follow in the footsteps of San Francisco and New York City in providing citizens with an “open data dump.” Pittsburgh has been on the cutting edge of open city government with iBurgh, Open Book Pittsburgh and other initiatives.

Also, be on the look out for a fantastic new tool for political bloggers of Pittsburgh. Monday, January 4th will be the first embed-able webcast of City Council meetings. They tested the software last week and expect an on-time launch.

This isn’t just a hours long YouTube style video. It is going to be search-able by speaker, bill or issue. If you’re interested in what Councilman Burgess said about an issue you can search for the issue and speaker to jump to their comments.

Peduto sees this as another way to keep people accountable. As a Pittsburgh City resident, I appreciate his efforts.

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The following is a press release that was sent to me by the SBDC. I didn’t have time to develop my own take on this information so I am publishing it how they send it to me. I usually don’t like to do that since this is a blog and not a newspaper, but he information is timely and interesting.

sbdcLOGO_bkPittsburgh, PA, November 4, 2009 — Organizations in Pennsylvania appear slow to adopt new emarketing technologies to build their brands, but are inching along in the right direction according to an October 2009 survey of 300 regional professionals from businesses, nonprofits and educational institutions.

The First Annual Pennsylvania Technology Use Survey — sponsored by Duquesne University’s Small Business Development Center (SBDC) and Ennect, a Pittsburgh-based emarketing software firm — was conducted in preparation for the 4th Annual Pennsylvania Business Technology Conference, scheduled for November 12th at Duquesne University. The Conference was created in 2005 to help small- to medium-sized businesses utilize the latest emarketing practices and information technology tools to drive sales, cut costs, expand outreach and build their brands.

The SBDC survey was coordinated to measure the impact and status of technology on regional organizations. According to its findings, only 42% of the region’s organizations have social media marketing strategies in place and only 9% plan a move into social media channels. This is in comparison with a recent Equation Research report that shows a small business social media adoption rate of 59% and a “planning to implement” rate of 28%. (A separate survey, conducted by Babson Executive Education and Mzinga across a variety of industries nationwide, reported that 86% have adopted social technologies.)

Of the 42% of Pennsylvania companies using social media, only 12% identified it as a “tremendous asset” with 21% indicating an impact on brand awareness, 16% reporting results in generating leads, 10% indicating increased sales, and 9% reducing marketing costs. In contrast, the September 2009 McKinsey Quarterly Global Survey found 52% of respondents used Web 2.0 tools because of increased marketing effectiveness, 43% reported higher customer satisfaction, and 38% reduced marketing costs.

LinkedIn was the clear winner among regional organizations for promoting products and services with 22% maintaining a presence on the fast-growing professional social networking site, followed by Facebook (18%), and Twitter (12%). Interestingly, Twitter has grown to become the most adopted social media tool nationally, with 54% of Fortune 100 companies having a Twitter presence, according to a July 2009 Burson-Marsteller survey.

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Also, despite the fact that online video sharing is exploding — with 144 million online viewers in the U.S. this year alone and projected growth to 154 million in 2010 — regional organizations appear to be less inclined to use sites like YouTube than their national counterparts. The McKinsey Quarterly Global Survey reported 48% of respondents felt that video sharing sites had customer-related benefits.

Regional businesses do appear to be tracking national trends1 in keeping investments flat in traditional marketing channels (print, radio, TV, direct mail, and even email marketing), while increasing – albeit slightly – investments in interactive online and search engine marketing.

While increased globalization is driving adoption of videoconferencing elsewhere, the technology hasn’t seemed to penetrate Pennsylvania businesses. Only 20% of respondents reported using audio-video teleconferencing, 24% use voice-only teleconferencing, and 34% have not adopted this technology.

Ironically, when asked about whether they were keeping up with changing technology, most survey respondents indicated they “felt like they were on track with keeping up with changing technology and online marketing.”

More information about the survey will be made available over coming weeks in the Ennect blog.

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modcloth_logo Congratulations to ModCloth founders Susan Gregg & Eric Koger, they are number 2 and 3 on this year’s Inc. 30 Under 30 list. While not a company one would expect out of Pittsburgh given the recent fascination with “eds and meds” in the news, ModCloth goes against the grain selling retro-inspired and true vintage clothing.

Started out of a dorm room at Carnegie Mellon (like many other Pittsburgh start-ups), ModCloth has grown to almost 100 employees and 2009 projected revenues of $15 million. They hit an accord with shoppers offering an easy way to avoid the hit-or-miss vintage shops such as Hey, Betty on Ellsworth in Shadyside.

The trend toward vintage clothing is becoming more popular everyday especially as the popularity of Mad Men increases. To meet the needs of their customers, ModCloth hires women in their 20s, their exact target demographic. So far, its paid off.

The duo of Susan and Eric works well – Eric runs the site while Susan manages the merchandise. A match made in heaven. Going forward they plan to offer a new experience to shoppers – that of an online “rack.” While I don’t know specifies, I see this being similar to Pittsburgh’s other big retailer American Eagle. Their Martin+Osa brand uses a flash based site to offer shoppers the opportunity to see a number of different outfits and comb through many possibilities.

Startup Pittsburgh congrats Susan & Eric on their accomplishment – well deserved!

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