A review of what makes the Boston Start-Up scene special

1. CONFIDENTIAL PRESENTATION | PAGE 1
What Makes Boston’s Start-Up
Scene Special?
Jeff Bussgang
General Partner, Flybridge Capital Partners
Senior Lecturer, Harvard Business School
Fall 2015

2. CONFIDENTIAL PRESENTATION | PAGE 2
 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

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Historical Leadership

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MIT – Factory of Innovation

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Harvard Is No Slouch

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Other Colleges and Universities

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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 Tech Sector - Most Concentrated in US
Source: MassTLC State of Technology Report – 2015
LQ is a way of defining how concentrated an industry cluster is compared to the national average

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Innovation Economy Is Densely Concentrated
Population: 640k Boston, 4.5m Greater Boston Area
40% of workforce in an innovation economy sector

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Geographic Clusters Benefits of High Concentration
495 Corridor
128 Corridor
Cambridge/Boston

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

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Boston’s Innovation District

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Next Up: Harvard - Allston

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Venture Capital: Regional Comparison
California:
$85B
New York:
$20B
Massachusetts:
$20B
VC Capital Under Management - 2014
Source: NVCA 2015 Yearbook
80% of total VC $ in these 3 regions

14. CONFIDENTIAL PRESENTATION | PAGE 14
Venture Capital Per Capita
California:
$3.7k/person
New York:
$1.0k/person
Massachusetts:
$4.3k/person
VC Capital Under Management Per Capita - 2014
Source: NVCA 2015 Yearbook, US Census, CA is counted as four MSAs (LA, SF, San Jose, San Diego)

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Proximity to NYC: A Huge Plus

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Leading Clusters: Life Sciences Leadership

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Leading Clusters: Boston’s Energy Sector

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MicroClusters Matter:
For Example, Mobile
• Over 100 VC-backed mobile start-ups
• Seven >$100M exits:
• Crashlytics (Twitter)
• Enpocket (Nokia)
• Jumptap (Millenial Media)
• M-Qube (Verisign)
• Quattro (Apple)
• Third Screen (AOL)
• Where (PayPal)

19. CONFIDENTIAL PRESENTATION | PAGE 19
Other MicroClusters
Cloud Computing
Cybersecurity
Health IT
Marketing
Tech
Education

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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
Gail Goodman
Constant Contact
Helen Greiner
CyPhy/iRobot
Bettina Hein
Pixability
Sheila Marcelo
Care.com

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Market caps as of 9/8/2015
$47B
$38B
$17B
$13B
$10B
$5B
$5B
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

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$71B
$49B
$31B
$11B
$10B
$8B
$5B
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

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
Tech Life Sciences
Boston-Based Platform Companies
Market Capitalization >$5B

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Expansion of Major Tech Companies

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Start-up Resources

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HubWeek Example: October 3-10
• Register: http://ow.ly/RSnmh
Michael Sandel’s MasterClass at Fenway
http://www.harvard.edu/hubweek

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Harvard Start-up Resources
1. Ajay Agarwal – Bain Capital
2. Julia Austin – Austinfish
3. Steve Bonner – Cancer Treatment
4. David Chang – Paypal
5. Sam Clemens – InsightSquared
6. Chuck Davis – TCV
7. David Frankel – Founder Collective
8. Janet Kraus – Peach/Circles
9. Sharon Peyer – Hitbliss
10. Jules Pieri – The Grommet
11. Ruben Pinchanski – Digitas
12. Katie Rae – Techstars Boston
13. Duke Rohlen - Spirox
14. Rudina Seseri – Fairhaven Capital
15. Martin Sinozich – Venn Capital
16. Jim Sharpe – HBS/Extrusion Tech
17. Michael Skok – Assemble
18. Jim Southern – Pacific Lake
19. Russ Wilcox – E Ink/Transatomic
NYC STARTUP TREK
Campus ResourcesHBS EIRs – 2015-16

26. CONFIDENTIAL PRESENTATION | PAGE 26
Investors and Entrepreneurs to Follow
Investors Blog URL Twitter
Rob Go / Next View robgo.org @robgo
Chip Hazard / Flybridge hazard.typepad.com @chazard
Bijan Sabet / Spark bijansabet.com @bijan
David Skok / Matrix forentrepreneurs.com @bostonvc
Michael Skok / Assemble mjskok.com @mjskok
Entrepreneurs Blog URL Twitter
David Cancel/Drifft davidcancel.com @dcancel
David Chang/ex-PayPal @changds
Wayne Chang/Twitter waynechang.com @wayne
Diane Hessan/StartUp Inst @DianeHessan
Sean Lindsay/Tapjoy @rseanlindsay
Jules Pieri/DailyGrommet jules.thegrommit.com @julespieri
Dharmesh Shah/Hubspot onstartups.com @dharmesh
Mike Troiano/Actifio medium.com/@miketrap @miketrap

27. CONFIDENTIAL PRESENTATION | PAGE 27
Conclusion: Top Ranked Innovation City
It’s All Here Waiting For You