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

3.
CONFIDENTIAL PRESENTATION | PAGE 3
Historical Leadership

4.
CONFIDENTIAL PRESENTATION | PAGE 4
MIT – Factory of Innovation

5.
CONFIDENTIAL PRESENTATION | PAGE 5
Harvard Is No Slouch

6.
CONFIDENTIAL PRESENTATION | PAGE 6
Recent HBS Grads Raising Money
for their Boston-Based Startups

7.
CONFIDENTIAL PRESENTATION | PAGE 7
Other Colleges and Universities

8.
CONFIDENTIAL PRESENTATION | PAGE 8
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

9.
CONFIDENTIAL PRESENTATION | PAGE 9
Innovation Economy Is Densely Concentrated
Population: 645k Boston, 4.6m Greater Boston Area

10.
CONFIDENTIAL PRESENTATION | PAGE 10
Geographic Clusters Benefits of High Concentration
495 Corridor
128 Corridor
Cambridge/Boston

11.
CONFIDENTIAL PRESENTATION | PAGE 11
“Highest Density Cluster of Innovation on the Planet”
Kendall Square

12.
CONFIDENTIAL PRESENTATION | PAGE 12
Boston’s Innovation District

13.
CONFIDENTIAL PRESENTATION | PAGE 13
Next Up: Harvard - Allston

14.
CONFIDENTIAL PRESENTATION | PAGE 14
VC Funding Has Become Even More
Concentrated Over Time

15.
CONFIDENTIAL PRESENTATION | PAGE 15
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)

17.
CONFIDENTIAL PRESENTATION | PAGE 17
Proximity to NYC: A Huge Plus

18.
CONFIDENTIAL PRESENTATION | PAGE 18
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

19.
CONFIDENTIAL PRESENTATION | PAGE 19
Leading Clusters: Life Sciences Leadership

20.
CONFIDENTIAL PRESENTATION | PAGE 20
Leading Clusters: Boston’s Energy Sector

21.
CONFIDENTIAL PRESENTATION | PAGE 21
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)

22.
CONFIDENTIAL PRESENTATION | PAGE 22
Other MicroClusters
Cloud Computing
Cybersecurity
Health IT
Marketing
Tech
Education

23.
CONFIDENTIAL PRESENTATION | PAGE 23Market caps as of 9/8/2016














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














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



25.
CONFIDENTIAL PRESENTATION | PAGE 25
Emerging Anchors
Market Capitalization $1-5B
$2-5B $1-2B




















$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
+
*

27.
CONFIDENTIAL PRESENTATION | PAGE 27
And We Also Have Our Unicorns
Public Private
+
+
* Founded since 2001 and worth >$1B +Acquired
+
+
*

28.
CONFIDENTIAL PRESENTATION | PAGE 28
Expansion of Major Tech Companies

29.
CONFIDENTIAL PRESENTATION | PAGE 29
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

31.
CONFIDENTIAL PRESENTATION | PAGE 31
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