1--Confidential

What Makes Boston’s Start-Up Scene Special?

Jeff BussgangGeneral Partner

Flybridge Capital PartnersFall 2013

2--Confidential

Intellectual Capital – academia, innovation, diverse industries and ideas

Venture Capital Advisors, Angels, Accelerators Successful Companies – to partner, poach

and/or sell to

Ingredients for a Vibrant Start-Up Ecosystem

3--Confidential

Historical Leadership

4--Confidential

MIT – Factory of Innovation

33,600 companies, 300

each year, employ 3.3

million people, generate

sales of $2 trillion,

300+ patents each year

5--Confidential

Harvard – The Business-Side Partner

6--Confidential

Other Colleges and Universities

74 colleges and universities in Boston-area, 265,000 students, 8 research universities pump $7 billion into economy, spending $1.5 billion on R&D yearly, 264 patents, 280 commercial licenses, and 41 start-up companies.

7--Confidential

San Jose BOS/Cambr

SF/Oak LA NYC -

1,000

2,000

3,000

4,000

5,000

6,000

Patents Issued Per Capita (M) - 2011

2011

Innovation Leadership: Patents

Source: US Patent and Trademark Office

8--Confidential

Innovation Leadership: #1 NIH Funding

Source: NIH (2008); Center for an Urban Future

9--Confidential

Innovation Economy Is Densely Concentrated

10--Confidential

Geographic ClustersBenefits of High Concentration

495 Corridor

128 Corridor

Cambridge/Boston

11--Confidential

Boston’s Innovation District

12--Confidential

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

13--Confidential

Next Up: Harvard - Allston

14--Confidential

Venture Capital: Regional Comparison

California: $14.1B

New York: $1.8B

Massachusetts: $3.0B

Total VC Investment 2012

Source: NVCA 2013 Yearbook

15--Confidential

Venture Capital Per Capita

California: $368/person

New York: $92/person

Massachusetts: $454/person

VC Investment Per Capita 2012

16--Confidential

Life Sciences Leadership

17--Confidential

Boston’s Energy Sector

18--Confidential

High Technology MicroClusters:For Example, Strength in Mobile

• Hundreds of iPhone developers in MA• Over 50 VC-backed mobile start-ups• Six 9-figure exits:

• Jumptap (Millenial Media)• Where (PayPal)• Quattro (Apple)• Enpocket (Nokia)• M-Qube (Verisign)• Third Screen (AOL)

• Other mobile leaders• Adelphic Mobile• Fiksu• RunKeeper• SavingStar • SessionM• Skyhook

iPhone developers using location API

19--Confidential

Other MicroClusters

Robotics

Cloud Computing

Online Video

Gaming

E-Commerce

Marketing Tech

Education

20--Confidential

Proximity to NYC: A Huge Plus

21--Confidential

BOSTON–BASED LIQUIDITY IN LAST 24 MONTHS: IPOS

IPOs (17)

Market caps as of 09/5/2013* Indicates IPO filing

$360M*

$815M

$237M*

$580M

$286M

$392M

$1.3B

$848M

$193M

TBD*

$1.8B

$388M

$333M

$1.3B

$6.2M

$11.6B

$363M

22--Confidential

BOSTON–BASED LIQUIDITY IN LAST 24 MONTHS: M&A

Market caps as of 09/5/2013

M&A >$500M (5)

$775M

$700M

$1.1B

$500M

$1.8B

23--Confidential

EMERGING PLATFORM COMPANIESMARKET CAPITALIZATION

Market caps as of 9/5/2013

$54B

$28B

$15B

$12B

$8B

$6B

$4B

$55B

$33B

$18B

$9B

$4B

$3B

24--Confidential

Expansion of Major Tech Companies

25--Confidential

Start-up Resources

26--Confidential

Investors and Entrepreneurs to Follow

Investors Blog URL TwitterFred Destin / Atlas freddestin.com @fdestinRob Go / Next View robgo.org @robgoChip Hazard / Flybridge hazard.typepad.com @chazardBijan Sabet / Spark bijansabet.com @bijanDavid Skok / Matrix forentrepreneurs.com @bostonvcMichael Skok/Northbridge mjskok.com @mjskokEntrepreneurs Blog URL TwitterDavid Cancel/Hubspot davidcancel.com @dcancelWayne Chang/Crashlytics waynechang.com @wayneDiane Hessan/Commun. @CommunispaceCEO

Rob May/Backupify coconutheadsets.com @robmayJules Pieri/DailyGrommet jules.thegrommit.com @julespieriDharmesh Shah onstartups.com @dharmesh

27--Confidential

Harvard Start-up Resources

HBS EIRs2013

Ajay AgarwalGordon BloomChuck DavisDavid Hornik

Eric PaleyJules Pieri

Ruben PinchanskiRudina Seseri

Jim SharpeSteve Sydness

Diego RodriguezRay Rothrock

Tony TjanRuss Wilcox

Campus Resources

NYC STARTUP TREK

BOSTONTREK

28--Confidential

Conclusion: Boston Ranked #1 City of Global Innovation Economy

#1 Boston

www.massitsallhere.com