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
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