Guide to the Boston Startup Scene - the ingredients, the micro-clusters and other local entrepreneurial leaders to follow.

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
Summer 2017

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

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33,600 companies
300 each year
Employs 3.3
million
Generates $2
trillion of sales
300+ patents each
year
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 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:
$181.3B
New York:
$45.5B
Massachusetts:
$50.2B
VC Capital Under Management - 2016
Source: Pitchbook / NVCA Yearbook
80% of total VC $ in these 3 regions

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. CONFIDENTIAL PRESENTATION | PAGE 16
StartedBefore
2008
StartedAfter
2009
Super Angels Micro VCs Seed VCs
Golden Seeds
Launch Capital
Launchpad
Michael Baker
David Chang
Wayne Chang
Semyon Dukach
Joi Ito
Jennifer Lum
Andy Palmer
Mike Volpe
Boston Seed
Hyperplane
Project11
Assemble.vc
DataPoint Capital
Dorm Room
Founder Collective
NextView Ventures
Pillar
Procyon Ventures
Romulus
RoughDraft Ventures
Converge VenturesJoe Caruso
Michael Dornbrook
John Landry
Dharmesh Shah
Italics – Flybridge Advisor or portfolio company CEO
Super Angels: Make > 10 investments, typically listed on AngelList
Seed VCs: $30-100m fund, predominantly invest in seeds
Micro VCs: $0-30m fund, predominantly invest in seeds or pre-seeds
Pre-Seed / Seed Capital Is More Available Now

17. CONFIDENTIAL PRESENTATION | PAGE 17
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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E-Commerce
Cloud
Ed Tech
Cybersecurity
Marketing Tech
Health IT
Machine Learning
Mobile
Robotics
Boston Technology Microclusters

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*Platform companies – large, anchor companies you can partner with, poach from, sell to and from
which many other companies will spin out
Boston-Based Platform Companies*

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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

27. CONFIDENTIAL PRESENTATION | PAGE 27
Start-Up Resources
Skills /
Educational
Industry
Organizations
Co-Working
Spaces

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Start-Up Resources
News
Outlets
Accelerators
/ Incubators
For
Students

29. CONFIDENTIAL PRESENTATION | PAGE 29
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/Project Dark blog.ellenchisa.com @ellenchisa
Paul English/Lola paulenglish.com @englishpaulm
Jennifer Lum/ForgeAI @lum
Sean Lindsay/Eager Labs @rseanlindsay
Dharmesh Shah/Hubspot onstartups.com @dharmesh
Mike Volpe/Cyberreason mikevolpe.com @mvolpe

30. CONFIDENTIAL PRESENTATION | PAGE 30
Conclusion: Top Ranked Innovation City
It’s All Here Waiting For You
#1 Boston
www.massitsallhere.com