This presentation discusses what makes Boston's startup scene special, including its intellectual capital from top universities like MIT and Harvard, its venture capital funding, and successful companies. It notes the dense concentration of innovation in Boston's tech sector and life sciences industry, as well as the many resources that support startups like accelerators, investors, and entrepreneurial leaders. The conclusion is that Boston is a top ranked city for innovation.

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 2016

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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Recent HBS Grads Raising Money
for their Boston-Based Startups

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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 Has Most Concentrated Tech Sector
Source: MassTLC State of Technology Report - 2015

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Innovation Economy Is Densely Concentrated
Population: 645k Boston, 4.6m Greater Boston Area

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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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VC Funding Has Become Even More
Concentrated Over Time

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Venture Capital: Regional Comparison
California:
$91B
New York:
$22B
Massachusetts:
$24B
VC Capital Under Management - 2015
Source: NVCA 2016 Yearbook
80% of total VC $ in these 3 regions

16. CONFIDENTIAL PRESENTATION | PAGE 16
Venture Capital Under Management
Per Capita
California:
$2.3k/person
New York:
$1.1k/person
Massachusetts:
$3.5k/person
VC Capital Under Management Per Capita - 2015
Source: NVCA 2016 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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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

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Leading Clusters: Life Sciences Leadership

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Leading Clusters: Boston’s Energy Sector

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Technology MicroClusters:
Strength in Mobile
• Over 100 VC-backed mobile start-ups
• Eight >$100M exits:
• Crashlytics (Twitter)
• Enpocket (Nokia)
• Jumptap (Millenial Media)
• M-Qube (Verisign)
• Quattro (Apple)
•RunKeeper (ASIC)
• Third Screen (AOL)
• Where (PayPal)

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Other MicroClusters
Cloud Computing
Cybersecurity
Health IT
Marketing
Tech
Education

23. CONFIDENTIAL PRESENTATION | PAGE 23Market caps as of 9/8/2016
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Tech Life Sciences
Boston-Based Platform Companies
Market Capitalization >$5B

$277B
$5B
$9B
$13B
$19B
$41B
$50B
$56B
 $9B
? $68B
$5B
$6B
$11B
$13B
$24B
$33B
$59B
$6B



24. CONFIDENTIAL PRESENTATION | PAGE 24Market caps as of 9/8/2016
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Tech Life Sciences
Boston-Based Platform Companies
Market Capitalization >$5B

$277B
$5B
$9B
$13B
$19B
$41B
$50B
$56B
 $9B
$68B
$5B
$6B
$11B
$13B
$24B
$33B
$59B
$6B
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25. CONFIDENTIAL PRESENTATION | PAGE 25
Emerging Anchors
Market Capitalization $1-5B
$2-5B $1-2B
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$4.9B
$4.6B
$4.3B
$4.3B
$4.2B
$3.9B
$3.6B
$3.5B
$2.7B
$2.5B
$2.1B
$2.1B
$2.0B
$1.9B
$1.5B
$1.4B
$1.2B
$1.2B
$1.1B
$1.1B
Market caps as of 9/8/2016

26. CONFIDENTIAL PRESENTATION | PAGE 26
And We Also Have Our Unicorns
Public Private
+
+
* Founded since 2001 and worth >$1B +Acquired
+
*

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And We Also Have Our Unicorns
Public Private
+
+
* Founded since 2001 and worth >$1B +Acquired
+
+
*

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Expansion of Major Tech Companies

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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
Helen Greiner
CyPhy/iRobot
Bettina Hein
Pixability
Sheila Marcelo
Care.com
Mary Puma
Axcelis

30. CONFIDENTIAL PRESENTATION | PAGE 30
Start-up Resources
News
Outlets
Accelerators
/ Incubators
For
Students

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Start-up Resources (2)
Skills /
Educational
Industry
Organizations
Co-working
Spaces

32. CONFIDENTIAL PRESENTATION | PAGE 32
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 blog.ellenchisa.com @ellenchisa
Paul English paulenglish.com @englishpaulm
Jennifer Lum @lum
Sean Lindsay/Tapjoy @rseanlindsay
Dharmesh Shah/Hubspot onstartups.com @dharmesh
Mike Troiano/Actifio medium.com/@miketrap @miketrap
Mike Volpe mikevolpe.com @mvolpe

33. CONFIDENTIAL PRESENTATION | PAGE 33
Harvard Start-up Resources
1. Ajay Agarwal – Bain Capital
2. Steve Bonner – Cancer Treatment
3. David Chang – Entrepreneur
4. Tom Clay – Xtalic
5. Sam Clemens – InsightSquared
6. Kerry Cooper – Choose Energy
7. Chuck Davis – TCV
8. Anne Dwane – GSV Acceleration
9. David Frankel – Founder Collective
10. Rob Go – NextView Ventures
11. Janet Kraus – Peach
12. Sharon Peyer – MissionBlast
13. Jules Pieri – The Grommet
14. Ruben Pinchanski – Digitas
15. Katie Rae – Project11
16. Duke Rohlen - Spirox
17. Rudina Seseri – Glasswing Ventures
18. Jim Sharpe – HBS/Extrusion Tech
19. Martin Sinozich – Venn Capital
20. Michael Skok – Underscore.VC
21. Jim Southern – Pacific Lake
22. Satish Tadikonda –Avigo Solutions
23. Russ Wilcox – E Ink/Transatomic
NYC STARTUP TREK
Campus ResourcesHBS EIRs – 2016-17

34. CONFIDENTIAL PRESENTATION | PAGE 34
Conclusion: Top Ranked Innovation City
It’s All Here Waiting For You
#1 Boston
www.massitsallhere.com