120614 MassVentures relaunch presentation
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Transcript of 120614 MassVentures relaunch presentation
JUNE 14, 2012
Secretary Greg Bialecki, Chairman of the Board for MTDC and Jerry Bird, President of MTDC are pleased to announce….
Fueling the Growth of InnovaEve, Technology-‐driven Companies in MassachuseGs
#massventures
Overwhelming consensus that a capital gap exists…
Yes
No
No Responses
86%
10% 3%
Is there a shortage of equity capital in MassachuseGs for start-‐up technology companies?
The Opportunity
32%
36%
25%
6%
1%
$0-‐$500K
$500k-‐$1 million
$1 million -‐ $3 million
$3 million to $5 million
$5 million to $10 million
…and 93% believe the gap is between $0-‐$3M
Other gaps that exist for early-‐stage companies
!"##$%&#'(&%&#)'(&%#*+,&-'+#')#'(&#-*,.'*/#0*,#'(*1#2314.10#*5)31'+6#7-())+&#*//#'(*'#*,,/89###:)/351; !"#$%&&%'($%#)*"()&+%(,-./0-.1(.)2%111All 3, but funding first time entrepreneurs may be the most34!5%.6-768%9*-+9%:9;8%9*-+9%68)("-<$."9=%"2%&>$%.)*%4("#6?@9(%!9ABCDECFDGHCI#&%"2%&'($%.)*%4("#9@9(%!90#-! #&%"2%&'($%.)*%4("#9@9(%!90#-!)911J%96D6K4+2"+167-.6B9(6("!%6%+(.%*.%+%4.9BFLME0IN O)+%(0/-9&-77'"+#.-,2+-,0#-!%P11J%96D6K4+2"+167-.64+2%.9%.Q%26"+249(."%9BBMAI0AN 57-&%@'9R4).%B5)+/0#-!9%.Q"#%111J%96D6K4+2"+167-.64+2%.9%.Q%26ST6.%1"-+9FEIF0AN &"()'!"(0%244+"Q11Initial funding for fields requiring substantial longer-term investment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funding for low tech companiesK4+2"+167-.64+2%.9%.Q%26ST6.%1"-+9IFNZ%(%.S"&)+-S)99)#$49%((96U77"#%6-76Y49"+%996`%Q%&-*!%+(GFLDGFHDBBGCZ%(%.0S"&)+-D?aT'9()(%0!)049 *%(%.0!"&)+-D9%)'9()(%0!)0491-Q(111O#).49-'5)+()!1.-4*0#-!)+1%&11]-$+6K0b-21!)+>47(96c-.2-+6[+9("(4(%MBFDFBHDIMMHO7$-21')-&0#-! O7$-21')-&0#-!4+"Q111])9-+S#<).($@Z.%#"9"-+6?&"*GFLLAMCLBA!##).($@O('1!)"&0#-! !##).($@O('1!)"&0#-!)9*111O%)+'O*$D)99-#")(%90#-!)+1%&111Consumer plays that are not Groupon#$4#/1."195@Sc<<MBF6EICDMIMI6dIIB#1."195@'!)991##0#-! #1."195@'!)991##0#-!1-Q(111Z$"&K"9/%<)!5."21%6T99-#")(%9MBFDAEFDBFMF*7"9/%'#)!5."21%)99-#")(%90#-! *7"9/%'#)!5."21%)99-#")(%90#-!9%.Q"#%11T+-+@!-491-Q(1]-$+UY."%+>$%6Y49"+%996W)&4)("-+6^6<-+94&("+16c.-4*MHCDIAGDEAMGO-5."%+'($%5Q#1.-4*0#-! T+-+@!-499%.Q"#%1Z)4&Y)&&)+("+%MBF6IBI6HFHL*)4&5)&&)+("+%')-&0#-! *)4&5)&&)+("+%')-&0#-!%P*111Worcester%.-5%.(9'!"(0%244+"Q11`)+W-+6V-$-.+Y%)#-+6T+1%&9MBFDGBHDHBGG2)+'Q-+/-$-.+0#-! 2)+'Q/.)0#-!)+1%&1Z$@&&"9?*%%+[+7-3%%29MBFAFICABE*9*%%+0"+7-+%%29'@)$--0#-! T+-+@!-499%.Q#"%11#+"#-&)-4'*)+%&#&),0#-!%P*11118"#$).2S)9(.-!)((%-Z-&@+-Q)6<-!*-9"(%9X6[+#EHL6LLLDHAMI."#$).2'#)*%0#-! ."#$).2'#)*%0#-!%P*111/)("%'*.-O%#(BB0#-!)+1%&111(*)./'&-,%&&!)01-Q1-Q(1*$%&*9'!%1)&"+/0+%(9%.Q"#%111#$."9*')1.-9#"0#-!%P*111,"&&")!e)"/!)+')(."49$%)&($0-.1Q#111S%&"+2)T"&%9S?Y`<EHLDMFCDGFLC!&)"&%9'!952#04!)990%24 !&)"&%9'!952#04!)990%249%.Q"#%111!-!)&&%@'"+7&%#(*-"+(0#-!Q#111T+-+@!-49Q#13%2c-99Z."#%,)(%.$-49%<--*%.9MBFDECHDABMM%2,).201-99'490*,#0#-! %2,).201-99'490*,#0#-!9%.Q"#%111*)4&0(4'9&-)+0!"(0%24%P*1118"#$).2`)Q"9TQ%#(.)X6[+#MBF6GAF6MBGE82)Q"9')Q%#(.)0#-! ."#$).2O2)Q"9BHH'$-(!)"&0#-!%P*1192,@%.'!)99#)*"()&0#-!Q#111K.%2S-.."9Y.--/6W%+(4.%6Z).(+%.9FLBDIGEDAHHH6PIHI!-.."9'5.--/Q%+(4.%0#-! !-.."9'5.--/Q%+(4.%0#-!Q#1112,)1+%.'+%-1.)7("+#0#-!%P*11`)+b)&%@Y.)27-.263%(,-./9EHLDEMMDHGFE2$)&%@'5.)27-.2+%(,-./90#-! T+-+@!-49%P*111?49)+f"+2$)!DY)++"9(%.S)996="7%6?#"%+#%96<%+(%.FLB6CFC6FFBL9,"+2$)!D5)++"9(%.'!)99&"7%9#"%+#%90#-! 9,"+2$)!D5)++"9(%.'!)99&"7%9#"%+#%90#-!1-Q(11)+2.%,'5#Q74+20#-!Q#111T+-+@!-49%P*11T+-+@!-49Q#111a."#?(-%.!%.a+Q".-+!%+()&6U*%.)("+16?-&4("-+9X6[+#0EHLFACLAAH%9(-%.!%.'%-9%+Q".-+!%+()&0#-! %9(-%.!%.'%-9%+Q".-+!%+()&0#-!%P*11funding for companies in Southeastern MA; companies in water treatment sectorT+-+@!-49%P*111S)./`"?)&Q-?%!)*$-.%GFL6FGADCCMM6P6CII!2"9)&Q-'9%!)A49)0#-! T+-+@!-49Q#11T+-+@!-499%.Q"#%111`)Q"2b-.1)+W%.!-+(6K4+26T2Q"9-.9X6[+#0LHI6FFCDGHBI2)$.4(Q('@)$--0#-! T+-+@!-49%P*111%&"\)5%($'!)99(�-.1(.)2%11<$."9Z)&)(4##"Z)&)(4##"6aP%#4("Q%6?%).#$X6==<EHLFEELBIL#$."9'*)&)(4##"9%).#$0#-! T+-+@!-499%.Q"#%11early stage biotechT+-+@!-49%P*11T+-+@!-499%.Q"#%1ca88JY=U`ca>>Y=U`ca>>6^6Y=U`ca>>X6Z0<0EHLDFECDEECC1%..@'5)5&),0#-! T+-+@!-499%.Q"#%111Yes-Funding for inventors who waht to develop and sell their inventions]-+)($)+W-<-!*%P6?-7(,).%EHLDFEADAHLEOQ'#-!*%P9-7(,).%0#-! T+-+@!-49%P*1West of Route 1289(%*$%+,%&&9-g!IHCMIGBMML,%&&9'-*(-+&"+%0+%( T+-+@!-49%P*1V).%+h(1-77V).%+6=)4(%.6h(1-776<-+94&("+1ABC0IEC0FBHL/&4'4(1-770#-! T+-+@!-499%.Q"#%111T&Z.%9#-((<.%9#%+(6[++-Q)("-+96[+#0GFLDFMADLMHA)&*.%9#-(('#.%9#%+("++-Q)("-+90#-! T+-+@!-49%P*111=)[email protected]!%.a+%[email protected]%9(%.96==<MBFDCIEDGLEI&1.4!%.'%+%.1@$).Q%9(%.90#-! T+-+@!-49%P*1T+-+@!-499%.Q"#%111T+-+@!-49%P*111T+-+@!-499%.Q"#%118)&*$?$%."2)+W)&4%6S)+)1%!%+(6==<FLBDICFDBHBA9$%."2)+'Q)&4%D!1!(0#-! .9$%."2)+'!"+29*."+10#-!)+1%&111T+-+@!-49%P*111funding for proof of concept/techY%.+2])+99%+?#"%+#%6^6S)+)1%!%+(6<-+94&("+1GFLDEHBDEFHM5%.+2O)+99'1!)"&0#-! T+-+@!-499%.Q"#%11T+-+@!-49Q#11V)."+c.%1-.@K4.!)+6c.%1-.@6==<MBFDGBIDEBAH/)."+'712D&),0#-! T+-+@!-499%.Q"#%11194.)O0/)*4.'!&0#-!9%.Q"#%1118-5f$"(%h67-.6="7%X6[+#0FLBDAGIDFHCG.-5'47-.&"7%0#-! T+-+@!-49)9*11Are there other aspects to the gapQuestion 5K".9(63)!%=)9(63)!%<-!*)+@63)!%f-./6Z$-+%a!)"&6T22.%99 NoYes - Funding for underserved MA geographies (i.e. companies located in Western MA)Yes - Funding for first time entrepreneurs (i.e. entrepreneurs who have never started a company before)Yes - Funding for underserved industries (i.e. material sciences, robotics)OtherU*("-+)&066f%6,-4&26&"/%6(-67-&&-,64*6,"($69-!%6.%9*-+2%+(96(-61)"+6!-.%6"+7-.!)("-+066Z&%)9%6%+(%.6($%6"+7-.!)("-+6"+2"#)(%265%&-,0 8%9*-+2%+(?()(49Are there other aspects to the capital gap than funding amounts? (choose all that apply)/5"((%.!)+'*-&)."9Q%+(4.%90#-!Q#1[1-.Y)&/>)9/Z-"+(MBFACBEAAA"5'()9/*-"+(0#-! "5'()9/*-"+(0#-!%P1%&-+'&)4+#$D#)*"()&0#-!Q#1`)+"%&K)+()9")>.%%&"+%X6[+#0FLBDLFMDLBHI7)+()9")'(.%%&"+%D"+#0#-! 7)+()9")'(.%%&"+%D"+#0#-!)91O)#/9(%,).(Q%+(4.%6#)*"()&674+26-76+%,6%+1&)+2FLB6ACB6LAHH6PCILO9(%,).('Q#7+%0#-! O9(%,).('Q#7+%0#-!Q#1`)Q"2V&%"+`<TZ[>T=6==<2)Q"2/'2#)*"()&B0#-! ,-&72/'1!)"&0#-!%P11V".9("+6a&)"+%S@%.9?*).d6<45%2X6[+#0GBF6EIC6GBMC/".9("+'9*).PC0#-! /".9("+'9*).PC0#-!%P11Y"&&8-9%+5%.1hS)99X6<W[ZFFA6AEE6FIFF,.-9%+5%.1'4!)99*0%24 ,.-9%+5%.1'4!)99*0%244+"Q11)2)!99'1(&),0#-!9%.Q"#%15-55"%#).&(-+"++-Q)("-+6+"1$(9FLBDFBLDFMBG.#).&(-+IHHC'@)$--0#-! 5-55"%'#).&(-+*.!)./%("+10#-!9%.Q"#%1O%2%&9-+')5Q&*0#-!%P17.)+/0R"4'Q-/+-,0#-!)91b).-&2?"!)+9/@CMH<$%9(+4(MBFDAMGDGHBL$).-&2'CMH#$%9(+4(0#-! $9"!)+9/@'1.%%+14"&20#-!%P1pre-revenue seedf)&(%.b-,).2i%D1%+MBF6MFA6IAAC,$-,).2'\%D1%+0#-! ,$-,).2'\%D1%+0#-!%Pc.%1-.@K.@%.W%.."&&6`)+)MBFDCHGDIMHH17.@%.'Q%.."&&2)+)0#-! 17.@%.'Q%.."&&2)+)0#-!9%.Q"#%inexperience of entrepreneurs in seeking start-up capitalK.%2]-9%*$T!%."#)j96c.-,($6<)*"()&MBFDIMBDABEH7O-9%*$')!%."#)91#0#-! 7O-9%*$')!%."#)91#0#-!9%.Q"#%1`4+#)+=%++-Pk9(.%)!FLBDELCDBEHC&%++-P'!@R9(.%)!0#-! &%++-P'R9(.%)!0!%%P1S)((]-$+9-+U!+"?(.)(MBFDEHBDGCCC!O-$+9-+'-!+"9(.)(0#-! !O-$+9-+'-!+"9(.)(0#-!%P1older, first-time entrepreneurs<$."98%1)+8KQ%+4%MBFDEHHDGHGM#$."9'8KQ%+4%0#-! #$."9'.7Q%+4%0#-!%P1New hardware tech is having a hard time in the face of softwareS)./K."%.@3%,54.@*-.(6<&%)+>%#$6<%+(%.GFLDMBLDFHMM!)./7'+%,54.@*-.(#&%)+(%#$0#-! 7."%.@'#-!#)9(0+%((.)2%Lack of Timely Answers, Time is MoneyY"&&<-+(%+(%c%9!%.6h*2%1.-Q%6==ZMBFDCEHDMLHH5"&&0#-+(%+(%'1%9!%.0#-! #-+(%+(%'&140#-!9%.Q"#%11%-.1%'2%.5@!)+)1%!%+(0#-!%P&&%,"+')($%+)#)*"()&0#-!9%.19%)+01"&&"1)+'1%9!%.0#-!9%.1Funding for companies with cash flow that need a recap(#-++-.9'%1)+#)*"()&0#-!Q#1b-&&@K&%(#$%.GFLDCGLDLLII$-&&@27&%(#$%.'1!)"&0#-! $27&%(#$%.IHHA'@)$--0#-!9%.Q"#%1Middle market companies seeking expansion capital.7)+2.)9#-'%1)+#)*"()&0#-!Q#11]"!T@&,).2U*%+8"9/X6==<MBFDICCDLAIAO"!)@&,).2'-*%+."9/&�#-! O"!)@&,).2'1!)"&0#-!)+1%&1S"#$)%&V-&-2+%.c--9%6b"&&6a+%.1@6Z).(+%.96==<MCB0AIC0AIGH!/-&-2+%.'1--9%$"&&0+%( !/-&-2+%.'1--9%$"&&0+%()+1%&Yes- intermediate rounds(-!)90$)Q.2)'9-&"2)##%990#-!%P1=%%?(%%&%>)(4!X6==<MBFDGHBDBBHB&%%09(%%&%'()(4!&�#-! &%%09(%%&%'()(4!&�#-!9%.11Access to "smart" seed capital that will help emerging cos. find first revenue!1-&25%.1'5"-Q%+(4.%9"+Q%9(-.90#-!Q#1funding to find key market information1-@)&$59'1!)"&0#-!%P11Transportation, University Spin-Outs`)+S#14".%?V[33J6*."#%96[+#FLBDEBHDGBLI2!#14".%'9/"++@*."#%90#-! 2!#14".%'9/"++@*."#%90#-!)9*12.)4/(@9'Q%+(4.%D)2Q"9-.90#-!9%.11Q"+"('540%244+"Q11`)Q%U.%##$"-c)(%8-#/%(X6[+#EHLDCGEDHIFG2)Q%-'-.%##$"-0+%( 2)Q%'1)(%.-#/%(0#-!%P11O5".2'!(2#0#-!Q#11/+-,&%9'$%)&($!%(."#90-.1)+1%&1(.@2%+'Q1-#-!0#-!%P1a."/Z%2%.9%+Y%)#-+6T+1%&9CCGDIIEDHHEM%*'5%)#-+)+1%&90#-! %*'5%)#-+)+1%&90#-!)+1%&11]%77.%@6S0?(-&%.S#<).(%.6^6a+1&"9$6DD)+26DD6=)4+#$*)2MBFDAAGDMEBBO!9(-&%.'9()+7-.2)&4!+"0-.1 O9(-&%.'!##).(%.0#-!9%.115&)+2%.'9%1(%..)0#-!%P1T+-+@!-494+"Qlack of business expertise of entrepreneursS%&Z.%+-Q"(\a+2-?*$%.%6?4.1"#)&X6[+#0MBFDFCLDMEGG!%&'!%&*.%+0#-! !%&'!%&*.%+0#-!%P8%+%%="+W%+(4.%6<)7%.%+%%0&"+'Q%+(4.%#)7%0+%( .%+%%0&"+'Q%+(4.%#)7%0+%((.)2%19$%.@&'9.9)99-#")(%90#-!)+1%&12"&%,"9'5)D2910+%()+1%&1`.%,b%99"-+DV4+\"D3)&@9"9GFLDEHEDFLHC2.%,'"D+)&@9"90#-! $%99"-+)'5#0%24%P12.-5%.(9-+'\%D1%+0#-!%P1OO%'!"(0%244+"Q1W)41$+Z%(.)1&")34)1%63"+%X6[+#0EHLDMBIDEEGEQ)41$+'+4)1%+"+%0#-! 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0% 10% 20% 30% 40% 50% 60% 70%
Funding for 1st Eme entrepreneurs
Funding for underserved industries
Funding for underserved MA
regions
% that believe a gap exists in particular areas
MassVentures’ Recommitment We are recommiGed to nurturing, funding, and growing innovaEve companies across all technologies in the Commonwealth. – Re-‐energized board – ¾ of the board is new within the year
– New leadership – SEmulaEng private investment – Focus on responding to the gap which is holding back the technology entrepreneur
Leveraging our Past Success • Invested $82M in 131 companies • Leveraged 10x of private capital resulEng in $800M+ of investment in MA companies
• Produced $115M in realized and unrealized proceeds at 14.8% gross IRR, 16 IPOs
• Created over 7,000 jobs @ a cost of $2K per job
Our future success…
• $5 million tradiEonal investment capital from MassDevelopment’s Emerging Technology Fund
• $3 million from recent porjolio exits
• $6 million START program
Capital
• Taking the lead in investments
• 4-‐7 new investment per year
• Work closely with the angels and angel groups for iniEal financing
• Broaden networks with VCs for later stage growth
Commitment
• The MassVentures’ Seed program -‐ early stage equity or converEble debt funding of up to $50K
• The MassVentures’ First Round program -‐ iniEal investments of $250K -‐ $500K in Series A equity capital and follow-‐on funding
• START: grants for SBIR phase II recipients
Programs
Thank you!
Follow us @massventures
Fueling the Growth of InnovaEve, Technology-‐driven Companies in MassachuseGs
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