1. What Makes Boston’s Start-Up
Scene Special?
Jeff Bussgang
General Partner, Flybridge Capital Partners
Senior Lecturer, Harvard Business School
Fall 2014
1--Confidential

2.  Intellectual Capital – academia, innovation,
diverse industries and ideas
 Advisors, Angels, Accelerators- seed $
 Venture Capital – scale $, mentorship
 Successful Companies – to partner, poach
2--Confidential
and/or sell to
Ingredients for a Vibrant
Start-Up Ecosystem

3. 3--Confidential
Historical Leadership

4. 4--Confidential
MIT – Factory of Innovation

5. 5--Confidential
Harvard Is No Slouch

6. Other Colleges and Universities
6--Confidential

7. Innovation Leadership: Patents
7--Confidential
6,000
5,000
4,000
3,000
2,000
1,000
-
Patents Issued Per Capita (M) - 2011
2011
Source: US Patent and Trademark Office

8. Innovation Leadership: #1 NIH Funding
8--Confidential
Source: NIH and Boston Redevelopment Authority (2013)

9. Innovation Economy is Densely Concentrated
Population: 640k Boston, 4.5m Greater Boston Area
9--Confidential

10. 10--Confidential
Geographic Clusters
Benefits of High Concentration
495 Corridor
128 Corridor
Cambridge/Boston

11. 11--Confidential
Kendall Square
“Highest Density Cluster of Innovation on the Planet”

12. 12--Confidential
Boston’s Innovation District

13. 13--Confidential
Next Up: Harvard - Allston

14. Venture Capital: Regional Comparison
14--Confidential
California:
$94B
Massachusetts:
$33B
New York:
$20B
Total VC Capital Under Management
Source: NVCA 2014 Yearbook
76% of total VC $ in these 3 regions

15. VC Capital Under Management Per Capita 2013
15--Confidential
Venture Capital Per Capita
California:
$2.5k/person
Massachusetts:
$4.9k/person
New York:
$1.0k/person
Source: NVCA 2014 Yearbook, US Census

16. Proximity to NYC: A Huge Plus
16--Confidential

17. Leading Clusters: Life Sciences Leadership
17--Confidential

18. Leading Clusters: Boston’s Energy Sector
18--Confidential

19. High Technology MicroClusters:
For Example, Strength in Mobile
• Hundreds of iPhone developers in MA
• Over 50 VC-backed mobile start-ups
• Seven 9-figure exits:
• Crashlytics (Twitter)
• Enpocket (Nokia)
• Jumptap (Millenial Media)
• M-Qube (Verisign)
• Quattro (Apple)
• Third Screen (AOL)
• Where (PayPal)
• Other mobile leaders
• Adelphic Mobile
• Drizly
• Fiksu
• RunKeeper
• SavingStar
• SessionM
19--Confidential
iPhone developers using location API

20. 20--Confidential
Other MicroClusters
Cloud Computing
Online
Video
Health IT
Marketing
Tech
Education

21. Strong Community of Women Tech Leaders
21--Confidential
Gail Goodman
Constant Contact
Abbie Celniker
Eleven
Biotherapeutics
Nicole Stata
Boston Seed
Michelle Dipp
Ovascience
C.A. Webb
N.E.V.C.A
Katie Rae
Project II
Helen Greiner
CyPhy

22. IPOs (17)
BioTech Tech
Market caps as of 9/16/2014
22--Confidential














$276M
$309M
TBD
TBD



$139M
$27M
$370M
$312M
$241M
$426M
$207M
$336M
$340M
$80M
$188M
$739M
$448M
Boston-Based IPOs in 2014

23. Recent Boston-Based Liquidity
M&A >$500M (5)

$1.8B

$1.1B

$775M

$700M

$500M
23--Confidential Market caps as of 09/5/2013

24. Boston-Based Platform Companies
Market caps as of 9/16/2014
24--Confidential
$60B
$38B
$15B
$14B
$11B
$5B
$5B




Market Capitalization



$77B
$49B
$22B
$9B
$5B
$3B







25. Expansion of Major Tech Companies
25--Confidential

26. 26--Confidential
Start-up Resources

27. Investors and Entrepreneurs to Follow
Investors Blog URL Twitter
Rob Go / Next View robgo.org @robgo
Chip Hazard / Flybridge hazard.typepad.com @chazard
Antonio Rodriguez/Matrix an.ton.io @antrod
Bijan Sabet / Spark bijansabet.com @bijan
David Skok / Matrix forentrepreneurs.com @bostonvc
Michael Skok/Northbridge mjskok.com @mjskok
Entrepreneurs Blog URL Twitter
David Cancel/Hubspot davidcancel.com @dcancel
Wayne Chang/Crashlytics waynechang.com @wayne
Diane Hessan/Commun. @CommunispaceCEO
Jules Pieri/DailyGrommet jules.thegrommit.com @julespieri
Dharmesh Shah onstartups.com @dharmesh
Mike Troiano/Actifio medium.com/@miketrap @miketrap
27--Confidential

28. 28--Confidential
Harvard Start-up Resources
HBS EIRs
2014
Ajay Agarwal
Marla Malcolm Black
Stephen Bonner
Sam Clemens
Chuck Davis
David Hornik
Janet Kraus
Eric Paley
Jules Pieri
Ruben Pinchanksi
Diego Rodriguez
Rudina Seseri
Jim Sharpe
Steven Sinofsky
Jim Southern
Russ Wilcox
Campus Resources
NYC STARTUP TREK

29. Conclusion: Boston Ranked #1
City of Global Innovation Economy
29--Confidential
#1 Boston
www.massitsallhere.com