Rich people would never want to live in Pittsburgh for many reasons, including that the culture of the place is in some ways morally opposed to the concept of rich people, the infrastructure is poor, the weather is always terrible, there is never any sun, and the food is terrible (often self-righteously so).

In other words, the cost of living is low because rent is low because there's no demand because no one wants to live here.

On top of all that, SV already exists, so if you were going to start a startup, there would be no reason not to start it there. And, once you exited there, you would have no reason to leave, and especially not in favor of Pittsburgh, of all places.

Thus, good investors, also known as angels, will never cluster here.

More on-topic, it seems like the CMU fund is going to have a committee of bureaucrats decide who to fund. Why would that ever be a good idea? I graduated from CMU and work there now, and if I started a startup and were offered money by said fund, I would reject it. They'd want me to go to an 'OFEF business workshop.'