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$-21')-&0#-! 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T+-+@!-499%.Q#"%11#+"#-&)-4'*)+%&#&),0#-!%P*11118"#$).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%($'!)99(&#0-.1(.)2%11<$."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(%*$%+,%&&9-g!IHCMIGBMML,%&&9'-*(-+&"+%0+%( T+-+@!-49%P*1V).%+h(1-77V).%+6=)4(%.6h(1-776<-+94&("+1ABC0IEC0FBHL/&4'4(1-770#-! T+-+@!-499%.Q"#%111T&Z.%9#-((<.%9#%+(6[++-Q)("-+96[+#0GFLDFMADLMHA)&*.%9#-(('#.%9#%+("++-Q)("-+90#-! T+-+@!-49%P*111=)..@c.4!%.a+%.1@6b9.Q%9(%.96==<MBFDCIEDGLEI&1.4!%.'%+%.1@$).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+#$D#)*"()&0#-!Q#1`)+"%&K)+()9")>.%%&"+%X6[+#0FLBDLFMDLBHI7)+()9")'(.%%&"+%D"+#0#-! 7)+()9")'(.%%&"+%D"+#0#-!)91O)#/9(%,).(Q%+(4.%6#)*"()&674+26-76+%,6%+1&)+2FLB6ACB6LAHH6PCILO9(%,).('Q#7+%0#-! 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T+-+@!-49%P*11c.%1V"+1S)996SaZEHL6LCBDFHIH1.%1-.@/'!)99!%*0-.1 T+-+@!-499%.Q"#%18-5%.(<$-,Z%**%.6b)!"&(-+MBFDIHADEBIB#$-,.'*%**%.&),0#-! T+-+@!-499%.Q"#%11T+-+@!-49%P*11

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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