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What Makes Boston's Startup Scene Special - fall 2017

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Review of the Boston startup scene and the elements that make it a special innovation ecosystem.

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What Makes Boston's Startup Scene Special - fall 2017

  1. 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 Author, Entering StartUpLand and Mastering the VC Game Fall 2017
  2. 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  Superior Quality of Life Ingredients for a Vibrant Start-Up Ecosystem
  3. 3. CONFIDENTIAL PRESENTATION | PAGE 3 Historical Leadership
  4. 4. CONFIDENTIAL PRESENTATION | PAGE 4 33,600 companies 300 each year Employs 3.3 million Generates $2 trillion of sales 300+ patents each year MIT Factory of Innovation
  5. 5. CONFIDENTIAL PRESENTATION | PAGE 5 Harvard is No Slouch
  6. 6. CONFIDENTIAL PRESENTATION | PAGE 6 Recent HBS Grads Raising Money for their Boston-Based Startups
  7. 7. CONFIDENTIAL PRESENTATION | PAGE 7 Other Colleges and Universities
  8. 8. CONFIDENTIAL PRESENTATION | PAGE 8 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
  9. 9. CONFIDENTIAL PRESENTATION | PAGE 9 Geographic Clusters Benefits of High Concentration 495 Corridor 128 Corridor Cambridge/Boston
  10. 10. CONFIDENTIAL PRESENTATION | PAGE 10 “Highest Density Cluster of Innovation on the Planet” Kendall Square
  11. 11. CONFIDENTIAL PRESENTATION | PAGE 11 Boston’s Innovation District
  12. 12. CONFIDENTIAL PRESENTATION | PAGE 12 Next Up: Harvard - Allston
  13. 13. CONFIDENTIAL PRESENTATION | PAGE 13 VC Funding Has Become Even More Concentrated Over Time: BOS, NY, SF
  14. 14. CONFIDENTIAL PRESENTATION | PAGE 14 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
  15. 15. CONFIDENTIAL PRESENTATION | PAGE 15 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
  16. 16. CONFIDENTIAL PRESENTATION | PAGE 16 StartedAfter 2009 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
  17. 17. CONFIDENTIAL PRESENTATION | PAGE 17 Proximity to NYC: A Huge Plus
  18. 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. 19. CONFIDENTIAL PRESENTATION | PAGE 19 Leading Clusters: Life Sciences Leadership
  20. 20. CONFIDENTIAL PRESENTATION | PAGE 20 Leading Clusters: Boston’s Energy/AgTech Sector
  21. 21. CONFIDENTIAL PRESENTATION | PAGE 21 E-Commerce Cloud Ed Tech Cybersecurity Marketing Tech Health IT Machine Learning Mobile Robotics Boston Technology MicroClusters
  22. 22. CONFIDENTIAL PRESENTATION | PAGE 22 *Platform companies – large, anchor companies you can partner with, poach from, sell to and from, typically . $2B market cap, which many other companies will s Boston-Based Platform Companies*
  23. 23. CONFIDENTIAL PRESENTATION | PAGE 23 And We Also Have Our Unicorns Public Private + + * Founded since 2001 and worth >$1B +Acquired * +
  24. 24. CONFIDENTIAL PRESENTATION | PAGE 24 And We Also Have Our Unicorns Public Private + + * Founded since 2001 and worth >$1B +Acquired * +
  25. 25. CONFIDENTIAL PRESENTATION | PAGE 25 Expansion of Major Tech Companies
  26. 26. CONFIDENTIAL PRESENTATION | PAGE 26 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
  27. 27. CONFIDENTIAL PRESENTATION | PAGE 27 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
  28. 28. CONFIDENTIAL PRESENTATION | PAGE 28 Boston VC Funds Led By Women * Not a fund but rather a trade association of VCs *
  29. 29. CONFIDENTIAL PRESENTATION | PAGE 29 Start-Up Resources Skills / Educational Industry Organizations Co-Working Spaces
  30. 30. CONFIDENTIAL PRESENTATION | PAGE 30 Start-Up Resources News Outlets Accelerators / Incubators For Students
  31. 31. CONFIDENTIAL PRESENTATION | PAGE 31 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
  32. 32. CONFIDENTIAL PRESENTATION | PAGE 32 Conclusion: Top Ranked Innovation City It’s All Here Waiting For You #1 Boston www.massitsallhere.com

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