Boston startup scene fall 2016 (final)
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CONFIDENTIAL PRESENTATION | PAGE 1
What Makes Boston’s Start-Up Scene Special?
Jeff BussgangGeneral Partner, Flybridge Capital PartnersSenior Lecturer, Harvard Business School
Fall 2016
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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
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CONFIDENTIAL PRESENTATION | PAGE 3
Historical Leadership
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CONFIDENTIAL PRESENTATION | PAGE 4
MIT – Factory of Innovation
33,600 companies, 300
each year, employ 3.3
million people, generate
sales of $2 trillion,
300+ patents each year
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CONFIDENTIAL PRESENTATION | PAGE 5
Harvard Is No Slouch
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CONFIDENTIAL PRESENTATION | PAGE 6
Recent HBS Grads Raising Money for their Boston-Based Startups
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CONFIDENTIAL PRESENTATION | PAGE 7
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.
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CONFIDENTIAL PRESENTATION | PAGE 8
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
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CONFIDENTIAL PRESENTATION | PAGE 9
Innovation Economy Is Densely ConcentratedPopulation: 645k Boston, 4.6m Greater Boston Area
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CONFIDENTIAL PRESENTATION | PAGE 10
Geographic Clusters Benefits of High Concentration
495 Corridor
128 Corridor
Cambridge/Boston
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CONFIDENTIAL PRESENTATION | PAGE 11
“Highest Density Cluster of Innovation on the Planet”Kendall Square
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CONFIDENTIAL PRESENTATION | PAGE 12
Boston’s Innovation District
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CONFIDENTIAL PRESENTATION | PAGE 13
Next Up: Harvard - Allston
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CONFIDENTIAL PRESENTATION | PAGE 14
VC Funding Has Become Even More Concentrated Over Time
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CONFIDENTIAL PRESENTATION | PAGE 15
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
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CONFIDENTIAL PRESENTATION | PAGE 16
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)
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CONFIDENTIAL PRESENTATION | PAGE 17
Proximity to NYC: A Huge Plus
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CONFIDENTIAL PRESENTATION | PAGE 18
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
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CONFIDENTIAL PRESENTATION | PAGE 19
Leading Clusters: Life Sciences Leadership
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CONFIDENTIAL PRESENTATION | PAGE 20
Leading Clusters: Boston’s Energy Sector
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CONFIDENTIAL PRESENTATION | PAGE 21
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)
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CONFIDENTIAL PRESENTATION | PAGE 22
Other MicroClusters
Robotics
Cloud Computing
Cybersecurity
Health IT
E-Commerce
Marketing Tech
Education
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CONFIDENTIAL PRESENTATION | PAGE 23
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
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CONFIDENTIAL PRESENTATION | PAGE 24
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
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CONFIDENTIAL PRESENTATION | PAGE 25
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
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CONFIDENTIAL PRESENTATION | PAGE 26
And We Also Have Our Unicorns
Public Private
+
+
* Founded since 2001 and worth >$1B +Acquired
+
*
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CONFIDENTIAL PRESENTATION | PAGE 27
And We Also Have Our Unicorns
Public Private
+
+
* Founded since 2001 and worth >$1B +Acquired
+
+
*
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CONFIDENTIAL PRESENTATION | PAGE 28
Expansion of Major Tech Companies
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CONFIDENTIAL PRESENTATION | PAGE 29
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
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CONFIDENTIAL PRESENTATION | PAGE 30
Start-up Resources
News Outlets
Accelerators / Incubators
For Students
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CONFIDENTIAL PRESENTATION | PAGE 31
Start-up Resources (2)
Skills / Educational
Industry Organizations
Co-working Spaces
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CONFIDENTIAL PRESENTATION | PAGE 32
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
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CONFIDENTIAL PRESENTATION | PAGE 33
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
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CONFIDENTIAL PRESENTATION | PAGE 34
Conclusion: Top Ranked Innovation City It’s All Here Waiting For You
#1 Boston
www.massitsallhere.com