Ven Raju, CEO of Innovation Works – Interview Series

Ven Raju, CEO of Innovation Works, is a seasoned venture investor and ecosystem builder with deep experience across early-stage and growth equity investing. He has led Innovation Works since October 2022 while also serving as Chief Investment Officer and Chair of the Investment Committee, overseeing strategy and capital deployment for one of the most active early-stage investors in the United States. He is also the Managing Director at Riverfront Ventures, investing across SaaS, robotics, IoT, health tech, AI and life sciences, and earlier served as Managing Director and Vice President at Northwell Ventures, where he developed technology investment theses and led diligence resulting in multiple successful investments and acquisitions. His background also includes a partnership at Chestnut Street Ventures, where he led growth equity investments that produced several IPOs and acquisitions, along with years of experience as a guest lecturer at the University of Pennsylvania.

Innovation Works is a Pittsburgh-based venture capital firm and startup support organization focused on accelerating the growth of high-potential technology companies. It provides early-stage funding, hands-on mentorship, and structured accelerator programs designed to help founders move from idea to scalable business. Through initiatives such as AlphaLab, AlphaLab Gear, and sector-focused programs spanning software, robotics, life sciences, and advanced manufacturing, Innovation Works plays a central role in building and sustaining the regional innovation economy while helping startups access capital, customers, and long-term growth opportunities.

You’ve worked across VC, private equity, and strategic investing. How has your experience shaped your approach to funding AI and robotics companies today?

My experience across investment types has reinforced the importance of remaining disciplined when evaluating emerging technologies. In markets like AI and robotics, initial excitement can create inflated expectations. It’s essential to stay grounded in whether a solution addresses a clear need, delivers value to the end customer, and can support a sustainable business model. Avoiding overexuberance and focusing on fundamentals is key. That approach has become even more important as interest in these sectors continues to grow.

What are Pittsburgh’s biggest advantages for startups compared to other tech hubs like Silicon Valley or New York, and how has the influx of entrepreneurs and investors impacted the local economy?

Pittsburgh offers strong technical talent, proximity to world-class research institutions, and a capital-efficient environment to start and scale companies. Carnegie Mellon remains the top-ranked AI university globally, contributing significantly to the depth of talent in the region. In 2024, Pittsburgh companies secured a record 182 venture deals. The growth in activity reflects a shift in the region’s economy—moving from traditional industries to one increasingly driven by technology and startup formation.

Given Pittsburgh’s strong industrial automation background, what future trends do you anticipate in AI and robotics integration, particularly in areas like manufacturing and autonomous systems?

While the long-term potential remains significant, broader adoption will take time. Ongoing volatility has created hesitation around large-scale automation investments. At the same time, workforce shortages and labor costs are driving interest in targeted technologies that improve productivity and can be deployed efficiently. Pittsburgh is well-positioned, both because of its industrial foundation and its research ecosystem. Over the next several years, we may see greater momentum, particularly if incentives, capital, and applied research continue to move in the same direction.

What are the biggest hurdles to commercialization for robotics startups, and how important are physical prototyping spaces like those provided by the Robotics Factory in accelerating product development?

For robotics startups, access to prototyping infrastructure is often a constraint. Equipment is capital-intensive and not readily available outside of university settings. The Robotics Factory helps bridge that gap with access to prototyping facilities and connections to over 600 local suppliers and manufacturers. It provides early-stage companies with the ability to build, test, and refine products in a cost-effective and timely way. While other similar programs may exist, these types of resources are still uncommon. Having them available in Pittsburgh strengthens the region’s ability to support product development and commercialization at the earliest stages.

With AI investment at an all-time high, do you foresee a shift toward other emerging technologies like quantum computing or biotech AI in the near future?

AI is already being applied in biotech, particularly in areas such as drug development and discovery. There is some expectation that AI may help compress the timeline required to move from molecule to market, though it remains to be seen whether that will prove out at scale. Over the next one to three years, we may begin to see early indicators of whether AI is materially advancing that process. As for quantum computing, it’s still in the research phase, and at this point, we’re not seeing clear commercial applications that would suggest an immediate shift in investment focus.

When evaluating early-stage AI and robotics startups, what key qualities do you look for in founders, and how do those traits correlate with long-term success?

The core attributes we look for have remained consistent across software, hardware, robotics, and life sciences sector areas. We evaluate whether the founding team has relevant experience, a clear understanding of the product and its use case, and the ability to move from idea to execution. In AI and robotics, we also look for signs that the technology addresses a real need and whether the market is responding. Early indicators—such as pilots or initial revenue—can help validate that. Adaptability is also critical, particularly as companies assess how AI can be integrated into their workflows and offerings in a practical way.

Beyond technical innovation, what business fundamentals do you prioritize when assessing investment opportunities in AI and robotics companies?

Our focus is on whether the product addresses a validated need and whether there is early market traction. This might come in the form of pilot programs, early adoption, or revenue. We also look at the scale of the opportunity and the team’s ability to build toward it. The use of AI can support development and execution, but it does not determine market viability on its own. A company must be able to demonstrate that its offering adds value for its target customers, and that there is a clear path to growth.

What role does Innovation Works play in supporting AI and robotics startups, and how has the organization evolved to meet the needs of today’s entrepreneurs?

Innovation Works has taken a more rigorous approach to assessing how AI is being used by early-stage companies. We place greater emphasis on understanding the customer’s experience with the product and whether the technology is delivering tangible results. Our team includes operators with domain experience, which allows us to support founders beyond capital, offering guidance on product development, go-to-market strategy, and scaling. Pittsburgh saw 182 companies secure funding in 2024, with AI and life sciences companies representing a growing share of that activity. Our goal is to continue supporting that momentum through early-stage capital and advisory support.

What advice would you give to AI and robotics founders looking to secure investment while also ensuring they build companies with lasting impact?

Founders should begin with a clearly defined problem and a product that addresses that need in a meaningful way. From there, the focus should be on validating the solution with the market and demonstrating that the opportunity is large enough to support growth. The use of AI or robotics should support those efforts, not drive them. The fundamentals of company-building still apply, from —understanding the customer, defining the market, and executing with discipline. That remains true regardless of the sector.

How do you see Pittsburgh’s AI and robotics ecosystem evolving over the next five years, and what role will it play in the broader AI revolution?

Pittsburgh’s robotics cluster is well-established, built over several decades with Carnegie Mellon as a central anchor. CMU is the top-ranked AI program in the country and produces more AI engineers than nearly any other institution. The ecosystem includes not only talent but also infrastructure and institutional knowledge. In 2024, Pittsburgh saw record venture deal volume, driven in part by AI companies. The foundation is strong, and over the next several years, we expect to see continued growth in both company formation and investment activity.