1--Confidential

What Makes Boston’s Start-Up Scene Special?

Jeff BussgangGeneral Partner

Flybridge Capital Partners

February 2012

2--Confidential

Intellectual Capital – academia, innovation, diverse industries and ideas

Venture Capital

Advisors, Angels, Accelerators

Successful Companies – to partner, poach and/or sell to

Ingredients for a Vibrant Start-Up Ecosystem

3--Confidential

Historical Leadership

4--Confidential

MIT – Factory of Innovation

33,600 companies, 300

each year, employ 3.3

million people, generate

sales of $2 trillion, 282

patents in 2008

5--Confidential

Harvard – The Business-Side Partner

6--Confidential

Other Colleges and Universities

74 colleges and universities in

Boston-area, 265,000 students, 8 research

universities pump $7 billion into economy, spending

$1.5 billion on

R&D yearly, 264 patents, 280 commercial licenses,

and 41 start-up companies.

7--Confidential

Innovation Leadership: #1 Patents

8--Confidential

Innovation Leadership: #1 NIH Funding

Source: NIH (2008); Center for an Urban Future

9--Confidential

Innovation Economy Is Densely Concentrated

10--Confidential

Geographic ClustersBenefits of High Concentration

495 Corridor

128 Corridor

Cambridge/Boston

11--Confidential

Venture Capital: Regional Comparison

California: $11.1B

New York: $1.3B

Boston: $2.4B

Total VC Investment 2010

Source: NVCA 2009 Yearbook

12--Confidential

Venture Capital Per Capita

California: $388/person

New York: $67/person

Boston: $457/person

VC Investment Per Capita 2010

13--Confidential

Life Sciences Leadership

14--Confidential

Boston’s Energy Sector

15--Confidential

High Technology MicroClusters:For Example, Strength in Mobile

• Hundreds of iPhone developers in MA• Over 50 VC-backed mobile start-ups• Five 9-figure exits:

• Where (PayPal)• Quattro (Apple)• Enpocket (Nokia)• M-Qube (Verisign)• Third Screen (AOL)

• Other mobile leaders• Fiksu• JumpTap• RunKeeper• SavingStar • Skyhook• MocoSpaceiPhone developers using location API

16--Confidential

Other MicroClusters

Robotic

s

Cloud

Computin

g

Online Video

Gaming

E-

CommerceMarketin

g Tech

17--Confidential

Proximity to NYC: A Huge Plus

18--Confidential

Recent Boston-area IPOs

19--Confidential

Future IPO Candidates (not incl. Flybridge portfolio!)

20--Confidential

Expansion of Major Tech Companies

21--Confidential

Start-up Resources

22--Confidential

Conclusion: Boston Ranked #1 City of Global Innovation Economy

#1 Boston

www.massitsallhere.com