What Makes the Boston Startup Scene Special?

CONFIDENTIAL PRESENTATION | PAGE 1

What Makes Boston’s Start-Up

Scene Special?

Jeff BussgangGeneral Partner, Flybridge Capital Partners

Senior Lecturer, Harvard Business School

Summer 2017


Intellectual Capital – academia, innovation,

diverse industries and ideas

Advisors, Angels, Accelerators- seed $

Venture Capital – scale $, mentorship

Successful Companies – to partner, poach

and/or sell to

Ingredients for a Vibrant Start-Up Ecosystem


Historical Leadership


33,600 companies

300 each year

Employs 3.3

million

Generates $2

trillion of sales

300+ patents each

year

MIT Factory of Innovation


Harvard is No Slouch


Other Colleges and Universities


0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

MA VA WA CA MD TX NC NY

Location Quotient (LQ)

Mass Has Most Concentrated Tech Sector

Source: MassTLC State of Technology Report - 2015


Innovation Economy Is Densely Concentrated

Population: 645K Boston, 4.6M Greater Boston Area


Geographic Clusters Benefits of High Concentration

495 Corridor

128 Corridor

Cambridge/Boston


“Highest Density Cluster of Innovation on the Planet”Kendall Square


Boston’s Innovation District


Next Up: Harvard - Allston


VC Funding Has Become Even More

Concentrated Over Time


Venture Capital: Regional Comparison

California:

$181.3B

New York:

$45.5B

Massachusetts:

$50.2B

VC Capital Under Management - 2016

Source: Pitchbook / NVCA Yearbook

80% of total VC $ in these 3 regions


Venture Capital Under Management

Per Capita

California:

$4.6K/person

New York:

$2.3K/person

Massachusetts:

$7.7K/person

VC Capital Under Management Per Capita - 2016

Source: NVCA 2017 Yearbook, US Census


Sta

rted B

efo

re

20

08

Sta

rted A

fter

20

09

Super Angels Micro VCs Seed VCs

Golden Seeds

Launch Capital

Launchpad

Michael Baker

David Chang

Wayne Chang

Semyon Dukach

Joi Ito

Jennifer Lum

Andy Palmer

Mike Volpe

Boston Seed

Hyperplane

Project11

Assemble.vc

DataPoint Capital

Dorm Room

Founder Collective

NextView Ventures

Pillar

Procyon Ventures

Romulus

RoughDraft Ventures

Converge Ventures Joe Caruso

Michael Dornbrook

John Landry

Dharmesh Shah

Italics – Flybridge Advisor or portfolio company CEO

Super Angels: Make > 10 investments, typically listed on AngelList

Seed VCs: $30-100m fund, predominantly invest in seeds

Micro VCs: $0-30m fund, predominantly invest in seeds or pre-seeds

Pre-Seed / Seed Capital Is More Available Now


Proximity to NYC: A Huge Plus


National Institute of Health: State Rankings

Most NIH awards

Source: Boston Business Journal, March 18th, 2016

Most NIH funding (millions)

Location Awards

California 7,765

Massachusetts 4,914

New York 4,880

Pennsylvania 3,380

Maryland 2,542

Texas 2,524

North Carolina 2,193

Illinois 1,920

Ohio 1,657

Location Funding

California $3,553

Massachusetts $2,507

New York $2,097

Maryland $1,735

Pennsylvania $1,535

North Carolina $1,148

Texas $1,040

Washington $916

Illinois $753


Leading Clusters: Life Sciences Leadership


Leading Clusters: Boston’s Energy Sector


E-Commerce

Cloud

Ed Tech

Cybersecurity

Marketing Tech

Health IT

Machine Learning

Mobile

Robotics

Boston Technology Microclusters


*Platform companies – large, anchor companies you can partner with, poach from, sell to and from

which many other companies will spin out

Boston-Based Platform Companies*


And We Also Have Our Unicorns

Public Private

+

+

* Founded since 2001 and worth >$1B +Acquired

+

*

+


And We Also Have Our Unicorns

Public Private

+

+

* Founded since 2001 and worth >$1B +Acquired

+

*

+


Expansion of Major Tech Companies


Strong Community of Women Tech Leaders

#2 “Top Cities for Female Entrepreneurs” - Forbes

Cynthia Brezeal

Jibo

Wendy Cebula

EdX

Abbie Celniker

Eleven Bio

Michelle Dipp

Ovascience

Helen Greiner

CyPhy/iRobot

Bettina Hein

Pixability

Sheila Marcelo

Care.com

Mary Puma

Axcelis


Start-Up Resources

Skills /

Educational

Industry

Organizations

Co-Working

Spaces


Start-Up Resources

News

Outlets

Accelerators

/ IncubatorsFor

Students


Investors and Entrepreneurs to Follow

Investors Blog URL Twitter

Rob Go / Next View robgo.org @robgo

Maia Heymann/ Converge @maiaheymann

Eric Paley / FC epaley.com @epaley

David Skok / Matrix forentrepreneurs.com @bostonvc

Bijan Sabet /Spark Capital bijansabet.com @bijan

Entrepreneurs Blog URL Twitter

David Cancel/Drift davidcancel.com @dcancel

David Chang/ex-PayPal @changds

Wayne Chang/Twitter waynechang.com @wayne

Ellen Chisa/Project Dark blog.ellenchisa.com @ellenchisa

Paul English/Lola paulenglish.com @englishpaulm

Jennifer Lum/ForgeAI @lum

Sean Lindsay/Eager Labs @rseanlindsay

Dharmesh Shah/Hubspot onstartups.com @dharmesh

Mike Volpe/Cyberreason mikevolpe.com @mvolpe


Conclusion: Top Ranked Innovation City

It’s All Here Waiting For You

#1 Boston

www.massitsallhere.com

http://www.massitsallhere.com/

http://www.massitsallhere.com/