State awards $2.5M to new Pittsburgh early-stage venture fund

PITTSBURGH — Draper Triangle Ventures, a venture capital firm founded in downtown Pittsburgh in 1999, has rebranded as Magarac Ventures and received $2.5 million from Pennsylvania’s Department of Community and Economic Development for its first fund.

DCED and the Ben Franklin Technology Development Authority jointly announced the capital infusion on Thursday and said that Magarac is being established to identify and ultimately invest in 15 to 20 early stage technology companies in western Pennsylvania with a focus on diversity and inclusion. The fundraising goal was not disclosed, but Magarac’s initial investments are expected to range between $500,000 and $5 million.

The fund is specifically looking to target companies focused on software, robotics, medical devices and artificial intelligence. At least 33% of the fund’s capital will be targeted at companies founded by individuals of diverse backgrounds, and each potential recipient company must commit to interviewing at least one female and one minority candidate for each senior-level position.

Read more from our news partners at the Pittsburgh Business Times.