Carnegie Mellon Startups: Building & Retaining Tech in Pittsburgh

Pittsburgh's Rising Startup Scene: A Look Inside CMU's Entrepreneurial Engine

The correlation between leading research institutions and successful startups is well-established. Pittsburgh benefits from the presence of two globally recognized universities – Carnegie Mellon University and the University of Pittsburgh – providing a strong foundation for innovation.

Historically, a challenge for Pittsburgh-based startups involved retaining talent and capital, with many ventures relocating to established hubs like New York City and San Francisco in pursuit of greater investment opportunities.

Following discussions with Pittsburgh’s mayor, Bill Peduto, regarding the city’s efforts to cultivate a local startup ecosystem, a conversation was held with Dave Mawhinney, the executive director of CMU’s Swartz Center for Entrepreneurship.

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This interview is part of TechCrunch’s City Spotlight series focusing on Pittsburgh. Join us on Tuesday, June 29 for a complimentary online event featuring Mayor Peduto, Karin Tsai, Director of Engineering at Duolingo, and Carnegie Mellon University President Farnam Jahanian. Register for the event here.

CMU's Startup Evolution: A Historical Perspective

TechCrunch: Could you provide a brief overview of CMU’s development of startups throughout the years?

Dave Mawhinney: As a CMU alumnus, my background differs from the typical academic. Prior to returning to Carnegie Mellon a decade ago, I spent 30 years in entrepreneurial ventures and venture capital. My goal was to elevate CMU to the level of Stanford, MIT, Berkeley, and other leading entrepreneurial universities.

When I joined CMU in 2011-2012, entrepreneurial activities were fragmented across different departments. Each – computer science, engineering, and the business school – operated independently, hindering potential synergies.

I accepted the role of running the Don Jones Center at the business school only on the condition that I be granted the authority to consolidate all entrepreneurial initiatives under a unified structure.

The Importance of a Well-Rounded Team and Curriculum

You can develop groundbreaking technology, but successfully commercializing it requires different skills. How does CMU integrate this into its curriculum, and how much collaboration exists between departments?

We emphasize the importance of a diverse team, encapsulated in our motto: “the ideal startup team is hacker, hustler, designer.” The ‘hackers’ are the technical experts, the ‘hustlers’ drive business development, and ‘designers’ are crucial for creating user-friendly products and services.

This philosophy is deeply ingrained in our educational approach. Whether through four-credit courses or workshops, we prioritize design thinking – understanding customer needs and developing solutions they are willing to pay for – as essential for a successful launch.

We also strongly advocate for mentorship, pairing startups with experienced mentors from relevant industries. Furthermore, our teams have access to a network of several hundred experts in areas like law, accounting, marketing, and manufacturing, providing guidance and support.

Access and Vetting for Startup Opportunities

What is the process for startups to access these resources? Is there a specific threshold they must meet?

Our doors are open to all. While access is generally unrestricted, dedicated workspace is earned. Teams that consistently participate in our programs, demonstrate daily and weekly progress, are awarded a dedicated table for branding and equipment storage.

The most successful teams, those gaining traction with customers and securing pre-seed or seed funding, are granted access to our ten “Startup Garages” – private office spaces. This system incorporates a degree of meritocracy, but opportunities are available to everyone. Ultimately, the entrepreneurs themselves must drive success; we provide support, but do not guarantee outcomes.

The Changing Landscape and Capital Challenges

Historically, schools outside major metropolitan areas have experienced talent drain. Has this been the case for CMU?

This was previously true, but the situation has evolved. A pivotal moment was Google’s establishment of a Pittsburgh office in 2006, now employing over 1,000 people. Major tech companies – Amazon, Facebook, and Apple – have also significantly expanded their presence in the city, contributing to rapid growth.

Carnegie Mellon is recognized as the birthplace of artificial intelligence, sparking the robotics revolution. Currently, Pittsburgh is a leading hub for automated vehicle technology, with companies like Aurora, Argo, and Aptiv co-located here. We are actively working to further expand this vibrant community.

However, attracting capital remains a challenge. Companies like Uber ATG, Argo AI, and Aurora have collectively secured over $7 billion in funding, much of which will be invested locally. But ensuring that this capital trickles down to early-stage AI startups raising their first $3 million requires maintaining strong connections to financial centers in the Bay Area and New York.