1--Confidential

What Makes Boston’s Start-Up Scene Special?

Jeff BussgangGeneral Partner

Flybridge Capital PartnersFall 2012

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

Innovation Leadership: #1 Patents

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

Venture Capital: Regional Comparison

California: $14.6B

New York: $2.7B

Massachusetts: $2.9B

Total VC Investment 2011

Source: NVCA 2012 Yearbook

12--Confidential

Venture Capital Per Capita

California: $391/person

New York: $142/person

Massachusetts: $446/person

VC Investment Per Capita 2011

13--Confidential

Life Sciences Leadership

14--Confidential

Boston’s Energy Sector

15--Confidential

High Technology MicroClusters:For Example, Strength in Mobile

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

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

• Other mobile leaders• Fiksu• JumpTap• MocoSpace• RunKeeper• SavingStar • SessionM• Skyhook

iPhone developers using location API

16--Confidential

Other MicroClusters

Robotics

Cloud Computing

Online Video

Gaming

E-Commerce

Marketing Tech

17--Confidential

Proximity to NYC: A Huge Plus

18--Confidential

BOSTON–BASED LIQUIDITY IN LAST 18 MONTHS

IPOs (12)

Market caps as of 10/4/2012

M&A >$500M (3)

$775M

$700M

$1.1B

$362M

$178M

$976M

$159M

$739M

$1.3B

$776M

$1.3B

$404M

$4.75B

$198M

$486M

19--Confidential

Expansion of Major Tech Companies

20--Confidential

Start-up Resources

21--Confidential

Investors and Entrepreneurs to Follow

Investors Blog URL TwitterBijan Sabet / Spark bijansabet.com @bijanDavid Skok / Matrix forentrepreneurs.com @bostonvc

Rob Go / Next View robgo.org @robgoFred Destin / Atlas freddestin.com @fdestinScott Maxwell / Openview blog.openviewpartners.com/

author/scott-maxwell@scottsnews

Entrepreneurs Blog URL TwitterBill Warner billwarner.posterous.com @billwarnerDavid Cancel davidcancel.com @dcancelDharmesh Shah onstartups.com @dharmeshRob May coconutheadsets.com @robmayWayne Chang waynechang.com @wayne

22--Confidential

Harvard Start-up Resources

HBS EIRs2012

Kent DautenChuck Davis

Dayna GraysonSteve HalmosDavid HornikTerry Kramer

Eric PaleyJules PieriEric Ries

Diego RodriguezRay RothrockCristian Shea

Steve SydnessTony Tjan

Lauri UnionRuss Wilcox

Gwill York

Campus Resources

NYC STARTUP TREK

BOSTONTREK

23--Confidential

Conclusion: Boston Ranked #1 City of Global Innovation Economy

#1 Boston

www.massitsallhere.com