boston startup scene fall 2016 (final)

CONFIDENTIAL PRESENTATION | PAGE 1

What Makes Boston’s Start-Up Scene Special?

Jeff BussgangGeneral Partner, Flybridge Capital PartnersSenior Lecturer, Harvard Business School

Fall 2016


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


Historical Leadership


MIT – Factory of Innovation

33,600 companies, 300

each year, employ 3.3

million people, generate

sales of $2 trillion,

300+ patents each year


Harvard Is No Slouch


Recent HBS Grads Raising Money for their Boston-Based Startups


Other Colleges and Universities

74 colleges and universities in Boston-area, 250,000+ students, 8 research universities pump $7 billion into economy, spending $1.5 billion on R&D yearly, 264 patents, 280 commercial licenses.


MA VA WA CA MD TX NC NY0

0.20.40.60.8

11.21.41.61.8

Location Quotient (LQ)

Mass Has Most Concentrated Tech Sector

Source: MassTLC State of Technology Report - 2015


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


Geographic Clusters Benefits of High Concentration

495 Corridor

128 Corridor

Cambridge/Boston


“Highest Density Cluster of Innovation on the Planet”Kendall Square


Boston’s Innovation District


Next Up: Harvard - Allston


VC Funding Has Become Even More Concentrated Over Time


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


Venture Capital Under ManagementPer 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)


Proximity to NYC: A Huge Plus


National Institute of Health: State Rankings

Most NIH awards

Source: Boston Business Journal, March 18th, 2016

Most NIH funding (millions)

Location AwardsCalifornia 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 FundingCalifornia $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


Leading Clusters: Life Sciences Leadership


Leading Clusters: Boston’s Energy Sector


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)


Other MicroClusters

Robotics

Cloud Computing

Cybersecurity

Health IT

E-Commerce

Marketing Tech

Education


Market 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


Market 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


Emerging AnchorsMarket 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

$1.1BMarket caps as of 9/8/2016


And We Also Have Our Unicorns

Public Private

+

+

* Founded since 2001 and worth >$1B +Acquired

+

*


And We Also Have Our Unicorns

Public Private

+

+

* Founded since 2001 and worth >$1B +Acquired

+

+

*


Expansion of Major Tech Companies


Strong Community of Women Tech Leaders#2 “Top Cities for Female Entrepreneurs” - Forbes

Cynthia BrezealJibo

Wendy CebulaEdX

Abbie CelnikerEleven Bio

Michelle Dipp Ovascience

Helen GreinerCyPhy/iRobot

Bettina HeinPixability

Sheila MarceloCare.com

Mary PumaAxcelis


Start-up Resources

News Outlets

Accelerators / Incubators

For Students


Start-up Resources (2)

Skills / Educational

Industry Organizations

Co-working Spaces


Investors and Entrepreneurs to Follow

Investors Blog URL TwitterRob Go / Next View robgo.org @robgoMaia Heymann/ Converge @maiaheymannEric Paley / FC epaley.com @epaleyDavid Skok / Matrix forentrepreneurs.com @bostonvcBijan Sabet /Spark Capital bijansabet.com @bijanEntrepreneurs Blog URL TwitterDavid Cancel/Drift davidcancel.com @dcancelDavid Chang/ex-PayPal @changdsWayne Chang/Twitter waynechang.com @wayneEllen Chisa blog.ellenchisa.com @ellenchisaPaul English paulenglish.com @englishpaulmJennifer Lum @lumSean Lindsay/Tapjoy @rseanlindsayDharmesh Shah/Hubspot onstartups.com @dharmeshMike Troiano/Actifio medium.com/@miketrap @miketrapMike Volpe mikevolpe.com @mvolpe


Harvard Start-up Resources

1. Ajay Agarwal – Bain Capital2. Steve Bonner – Cancer Treatment3. David Chang – Entrepreneur4. Tom Clay – Xtalic5. Sam Clemens – InsightSquared6. Kerry Cooper – Choose Energy7. Chuck Davis – TCV8. Anne Dwane – GSV Acceleration9. David Frankel – Founder Collective10. Rob Go – NextView Ventures11. Janet Kraus – Peach12. Sharon Peyer – MissionBlast13. Jules Pieri – The Grommet14. Ruben Pinchanski – Digitas15. Katie Rae – Project1116. Duke Rohlen - Spirox17. Rudina Seseri – Glasswing Ventures18. Jim Sharpe – HBS/Extrusion Tech19. Martin Sinozich – Venn Capital20. Michael Skok – Underscore.VC21. Jim Southern – Pacific Lake22. Satish Tadikonda –Avigo Solutions23. Russ Wilcox – E Ink/Transatomic

NYC STARTUP TREK

BOSTONTREK

Campus ResourcesHBS EIRs – 2016-17


Conclusion: Top Ranked Innovation City It’s All Here Waiting For You

#1 Boston

www.massitsallhere.com

http://www.massitsallhere.com/