What Makes the Boston Start-Up Scene Special?

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Notes on slide 1

Nod to Fred Wilson, who did a similar presentation for NYC.Note that when I refer to Boston, I’m really referring to the Boston metro area, which includes all of MA and parts of New England.

MIT, in particular, has been a start-up company factory33,600 companies founded by MIT affiliates; 25,800 are currently activeEmploy 3.3M people and generate $2T in sales250-300 new companies started each year by students and alumniEnduring giants: Campbell Soup, Gillette, Bose, HP, Intel, TI, Genentech, Raytheon, Qualcomm, iRobot, AkamaiMIT Technology Licensing Office (TLO) 2008:282 patents filed, 122 issued20 companies started with VC or $50k of other funding$89.1M in revenues from royalties and equity

Harvard University and Harvard Business School have also been factories for innovation.HBS graduates have started companies like Open Market, PTC, Staples, Transnational Group, Upromise Many of these companies have been in partnership with MIT talent, such as Avid, DEC, Open Market and Teradyne

On a per capita basis, Massachusetts has a significant advantage over other leading technology states, with 76 engineering degrees awarded per 100,000 residents, compared to 51 in Virginia.

Education and university research leads to patent leadership.

Education and university research leads to NIH funding – with over $2 billion in NIH funding pouring into basic research into the region.

VC Investments are very, very concetrated in the US. 70% of all VC $ flows into 3 states.Massachusetts has always been a strong #2 to California. But when you look at the numbers on a per capita basis (which is what entrepreneurs care more about – after all, it’s not very relevant how much capital is invested in China, what’s relevant is how concentrated that capital is)…

…you can see that Boston is the top region of the three major markets. Per capita is, after all, a proxy for how capital is available PER ENTREPRENEUR

Many similarities in the environment between Silicon Valley and Massachusetts; One area of distinction beyond the weather (which, three months out of the year, quite honestly sucks) is a well-functioning government; Even in these difficult economic times, The Governor and the Legislature have worked together to deliver on-time, balanced budgets every year, which translates to sustained high quality schools and communities for the future.

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What Makes the Boston Start-Up Scene Special? - Presentation Transcript

What Makes Boston’s Technology Start-Up Scene Special?
Jeff Bussgang
General Partner
Flybridge Capital Partners
Ingredients for a Vibrant
Start-Up Ecosystem
- Intellectual Capital – academia, innovation, diverse industries and ideas
- Venture Capital
- Advisors, Angels, Accelerators
- Successful Companies – to partner, poach and/or sell to
Historical Leadership
MIT – Factory of Innovation
33,600 companies, 300 each year, employ 3.3 million people, generate sales of $2 trillion, 282 patents in 2008
Harvard – The Business-Side Partner
Other Colleges and Universities
74colleges and universities in Boston-area, 265,000 students, 8 research universities pump $7 billioninto economy, spending $1.5 billion on R&D yearly, 264patents, 280 commercial licenses, and 41 start-up companies.
Innovation Leadership: #1 Patents
Innovation Leadership: #1 NIH Funding
Source: NIH (2008); Center for an Urban Future
Innovation Economy Is Densely Concentrated
Geographic Clusters
128 Corridor
Cambridge/Boston
495 Corridor
Venture Capital in Comparison
Total VC Investment 2008
Boston: $3.0B
New York: $1.3B
California: $14.3B
Source: NVCA 2009 Yearbook
Venture Capital Per Capita
VC Investment Per Capita 2008
Boston: $457/person
New York: $67/person
California: $388/person
Boston vs. Silicon Valley
Life Sciences Leadership
Boston’s Energy Sector
High Technology MicroClusters:
For Example, Strength in Mobile
- Hundreds of iPhone developers in MA
- Over 50 VC-backed mobile start-ups
- Three 9-figure exits:
- Enpocket, M-Qube, Third Screen
- Mobile advertising leaders
- Quattro Wireless, JumpTap
iPhone developers using location API
Other MicroClusters
Cloud Computing
Robotics
Gaming
Marketing Technology
Online Video
E-Commerce
Proximity to NYC
Recent Boston-area IPOs
Expansion of Major Tech Companies
Start-up Resources
More resources can be found at: http://dondodge.typepad.com/the_next_big_thing/2009/10/boston-startup-events-resources-people-you-need-to-know.html
Conclusion
#1 Boston
www.massitsallhere.com