what makes boston's startup scene special - fall 2017

CONFIDENTIAL PRESENTATION | PAGE 1

What Makes Boston’s Start-Up

Scene Special?

Jeff BussgangGeneral Partner, Flybridge Capital Partners

Senior Lecturer, Harvard Business School

Author, Entering StartUpLand and Mastering the VC

Game

Fall 2017

http://www.jeffbussgang.com/

https://www.amazon.com/gp/product/1591843251/


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

Superior Quality of Life

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


Recent HBS Grads Raising Money

for their Boston-Based Startups


Other Colleges and Universities


Innovation Economy Is Densely Concentrated

Population: 645K Boston, 4.6M Greater Boston Area

• MA named top “innovation economy, for the 4th year in a row,

• Roughly 38% of MA residents work in the innovation economy


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: BOS, NY, SF


Venture Capital: Regional Comparison

California:

$181.3B

New York:

$45.5B

Massachusetts:

$50.2B

VC Capital Under Management - 2016

Source: Pitchbook / NVCA 2017

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 A

fter

20

09

Super Angels Micro VCs Seed VCs

Boston Seed

Companyon Capital

DataPoint Capital

Dorm Room

E14 Fund (MIT)

The Graduate Syndicate

Hyperplane

InTeahouse

Launch Capital

Mass Ave Capital

Material Impact

NextGen

OneWay Ventures

Procyon

Rough Draft Ventures

XFactor Ventures

BioInnovation Capital

Brain Robotics Capital

Converge Ventures

Engine

Flybridge Capital Partners

Founder Collective

G20

Glasswing

NextView Ventures

Pillar

Procyon Ventures

Romulus

Underscore.VC

Michael Baker

Kirstan Barnett

Joe Caruso

David Chang

Wayne Chang

Barbara Clarke

Michael Dornbrook

Diane Hessen

Joi Ito

John Landry

Jennifer Lum

Andy Palmer

Dharmesh Shah

Mike Volpe

Boston Angel Club

Golden Seeds

Launchpad

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

Micro VCs: $0-50m fund, predominantly invest in seeds or pre-seeds

Seed VCs: $50-150m fund, predominantly invest in 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/AgTech

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, typically . $2B market cap, which many other companies will spin out from

Boston-Based Platform Companies*


And We Also Have Our Unicorns

Public Private

+

+

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

*

+


Expansion of Major Tech Companies


Quality of life: Exciting and Comfortable

• Boston ranked 8th best city in the world to live in, top US city

• Best purchasing power in the US

Small town feels with all the perks of city

life


Strong Community of Women Tech Leaders

#2 “Top Cities for Female Entrepreneurs” - Forbes

Zoe Barry

ZappRx

Cynthia Brezeal

Jibo

Sasha Hoffman

Piaggio Fast Forward

Abbie Celniker

Eleven Bio

Michelle Dipp

Ovascience

Helen Greiner

CyPhy/iRobot

Bettina Hein

Pixability

Sheila Marcelo

Care.com

Mary Puma

Axcelis

Reshma Shetty

Ginkgo Bioworks


Boston VC Funds Led By Women

* Not a fund but rather a trade association of VCs

*


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 medium.com/@robgo @robgo

Maia Heymann/ Converge medium.com/@MaiaHeymann_3619

1@maiaheymann

Eric Paley / FC medium.com/@epaley @epaley

David Skok / Matrix forentrepreneurs.com @bostonvc

Bijan Sabet / Spark Capital bijansabet.com @bijan

Sarah Hodges / Pillar medium.com/@sarahhodges @hodges

Mike Troiano / G20 medium.com/@miketrap @miketrap

Entrepreneurs Blog URL Twitter

David Cancel / Drift medium.com/@dcancel @dcancel

David Chang / ex-PayPal medium.com/@davidgchang @changds

Alexandra Drane / Eliza @adrane

Paul English / Lola paulenglish.com @englishpaulm

Linda Henry / HubWeek @linda_pizzuti

Dharmesh Shah / Hubspot medium.com/@dharmesh @dharmesh

Mike Volpe / CyberReason medium.com/@mvolpe @mvolpe

mailto:medium.com/@dharmesh


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/