MassChallenge runs a $1M annual startup competition and accelerator to catalyze the launch and success of high-growth, high-impact new businesses. The competition is open to anyone in the world, with any new startup, in any industry. Every entrant receives training, feedback, PR and networking support via expert volunteers from partner organizations, and the highest-potential startups receive 3 months of intensive mentorship and free services in 22,000 sq ft of premium office space in Boston's Innovation District -- all free of charge, with no strings attached. In 2010, MassChallenge's inaugural year, MassChallenge received 450 applications from 26 countries and 24 states, and supported just over 330 entrepreneurs in their accelerator program. Since the start of the first accelerator in August 2010, MassChallenge teams have secured $20M+ in outside funding, representing leverage of more than 40x on the public grants provided by Governor Deval Patrick to help launch the pilot program in Massachusetts. The startups involved have already produced almost 300 direct jobs, representing less than $2,000 public funding per job created, and their highest-growth stages still lie ahead. New support from the Deshpande Foundation, the Blackstone Charitable Foundation, the Fallon Company, Johnson & Johnson’s Corporate Office of Science & Technology (COSAT), the Microsoft Corporation and others will enable MassChallenge to support 1,000+ entrepreneurs directly in 2011, and provide a platform for significant national expansion in 2012 and beyond. You can learn more at www.masschallenge.org

1. Overview and
2010 metrics
MassChallenge overview
and 2010 metrics
John Harthorne
john@masschallenge.org
Akhil Nigam
akhil@masschallenge.org
Karl Büttner
karl@masschallenge.org
DRAFT January 2011
January 2010

2. MassChallenge is fostering innovation and
growth via a global startup competition
MassChallenge mission
To catalyze a
startup renaissance
MassChallenge startup competition
A global competition designed to
attract, strengthen, filter, and enable funding
for the best startups to launch immediately
Copyright © 2011, MassChallenge, Inc. All Rights Reserved. 1

3. The startup competition connects innovators
with supporters and resources throughout
2011 Competition Dates Annual $1M Startup
Jan 2011
Competition and Accelerator
Prepare MassChallenge
March 8 • Anyone can enter, from
Accept applications anywhere, with any startup
& prepare entrants
April 11 • Everyone gets training and
2 rounds of judging access to networks & resources
May 24
Prepare finalists • Expert judges identify highest
for accelerator impact, most viable startups
June 20
• Finalists are matched with
Accelerate mentors and free resources
finalists
Oct 1 • Highest impact, most viable
Final Judging startups win awards
Oct 20 Final ceremony
• Sponsors, partners, alumni
are integrated into all stages
Engage all participants
and alumni
Copyright © 2011, MassChallenge, Inc. All Rights Reserved. 2

4. In year 1, MassChallenge was largest competition
& accelerator ever: 446 entrants and 111 finalists
MassChallenge launch event with Governor Deval Patrick, Boston Mayor Thomas Menino, and passionate innovators.
• Largest-ever startup competition and accelerator
• 446 applicant startups from 26 countries and 24 states
• Over 250 different judges and mentors participated
• Concierge-like support for 111 startups
• Office space, mentorship, press/media support and much more
• Satisfaction rates among finalists higher than for Apple customers
• Millions of dollars in funding facilitated
• $1M in cash prizes across 16 winners
• Connections resulting in significant angel and VC financing
Copyright © 2011, MassChallenge, Inc. All Rights Reserved. 3

5. In first year, MassChallenge secured support from
leaders in each area of MA innovation ecosystem
• MA Governor Deval Patrick
• BOS Mayor Thomas Menino
• Core Sponsors/Advisors:
• Desh Deshpande Government • 40+ VC and Angel funds
• Josh Boger involved as mentors/judges
• Ken Morse Entrepreneurs Angels & VCs • 20 of top 100 VC funds
• 446 applications • Dozens of individual angels
111 startups as finalists MassChallenge
Startup Catalyst
• 250+ events including Businesses & • Microsoft, Blackstone,
People
training and job fairs Foundations Verizon and 15+ more
• Media coverage on • Desphande Foundation
Universities
Fox Business, CNBC etc.
• Kauffman Foundation
• 30+ Universities engaged to provide funding,
research, students and mentors
• Direct support from Presidents of Umass, MIT
Babson, WPI, BU, Northeastern, and Tufts
• Strong support via entrepreneurship centers at
Harvard, Dartmouth & many more
Copyright © 2011, MassChallenge, Inc. All Rights Reserved. 4

6. MassChallenge Accelerator: 111 startups, 22K+ ft2
office space, 200+ mentors, $1M in grants
446 applications received
Aug-Oct • 22,000+ ft2 shared office space
Accelerator
• 330+ people in 111 startups
111 startups mentored
• 5,000+ hours of mentoring
Oct. 21 • 200+ mentors
Final Ceremony
• 10+ new companies incorporated
$1M awarded
• 300+ judges & mentors engaged
April 2011 • $20M+ external funding secured
6 month review by startups by Jan 31, 2011
Updated metrics TBD • ~300 jobs created by startups
by Jan 31, 2011
Copyright © 2011, MassChallenge, Inc. All Rights Reserved. 5

7. 446 teams applied to enter MassChallenge,
representing 26 countries and 24 states
446 startups = world’s largest Startup Competition
Notes: All values self-reported based on “primary industry” and “current headquarters”.
Copyright © 2011, MassChallenge, Inc. All Rights Reserved. 6

8. Expert judges selected 111 finalists to participate in
the 3 month MassChallenge accelerator program
111 startups = world’s largest Startup Accelerator
Notes: All values self-reported based on “primary industry” and “current headquarters”.
Copyright © 2011, MassChallenge, Inc. All Rights Reserved. 7

9. Feedback from startups very positive, with finalist
satisfaction exceeding Apple customer enthusiasm
Net Promoter Score = % promoters - % detractors
"How likely would you be to recommend Net Promoter Score (NPS)
MassChallenge to a friend?" US leaders (2010)
(10 = most likely)
N=46
• USAA 81%
78.3%
• Apple 78%
• Amazon 71%
• Trader Joe’s 68%
• Wegman’s 67%
Notes: MassChallenge NPS calculated from data collected in Jan 2011 finalist survey
Comparative NPS data from: http://www.netpromoter.com/np/compare.jsp
Copyright © 2011, MassChallenge, Inc. All Rights Reserved. 8

10. MassChallenge organized 250+ events in 2010,
fostering connections and educating 5,000+ people
Events Organized How satisfied are you with
by MassChallenge your current ACCESS to each of
in 2010 the following? (10 most satisfied)
Notes: Before data from April 2010 (N=86),
after data from November 2010 (N=49) Copyright © 2011, MassChallenge, Inc. All Rights Reserved. 9

11. Finalists indicate improved access to key
resources, especially to peers and funding sources
How satisfied are you with your current ACCESS
to each of the following? (10 most satisfied)
+32%
+34%
+16% +22%
Notes: Before data from April 2010 (N=86),
after data from November 2010 (N=49) Copyright © 2011, MassChallenge, Inc. All Rights Reserved. 10

12. Finalists credit MassChallenge with increasing their
access, especially those that engaged actively
To what extent has MassChallenge
improved your access to key resources? ~30% better
(10 being very significantly) improvement for
engaged teams
Notes: Before data from April 2010 (N=65),
after data from November 2010 (N=48) Copyright © 2011, MassChallenge, Inc. All Rights Reserved. 11