1--Confidential

What Makes Boston’s Technology Start-Up Scene

Special?

Jeff BussgangGeneral Partner

Flybridge Capital Partners

December 2010

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, 282

patents in 2008

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

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Innovation Economy Is Densely Concentrated

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Geographic ClustersBenefits of High Concentration

495 Corridor

128 Corridor

Cambridge/Boston

11--Confidential

Venture Capital: Regional Comparison

California: $14.3B

New York: $1.3B

Boston: $3.0B

Total VC Investment 2008

Source: NVCA 2009 Yearbook

12--Confidential

Venture Capital Per Capita

California: $388/person

New York: $67/person

Boston: $457/person

VC Investment Per Capita 2008

13--Confidential

Boston vs. Silicon Valley

Silicon Valley Boston

14--Confidential

Life Sciences Leadership

15--Confidential

Boston’s Energy Sector

16--Confidential

High Technology MicroClusters:For Example, Strength in Mobile

• Hundreds of iPhone developers in MA• Over 50 VC-backed mobile start-ups• Four 9-figure exits:

• Quattro Enpocket, M-Qube, Third Screen• Other mobile leaders

• JumpTap, Skyhook

iPhone developers using location API

17--Confidential

Other MicroClusters

Robotic

s

Cloud

Computin

g

Online Video

Gaming

E-

CommerceMarketin

g Tech

18--Confidential

Proximity to NYC

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Recent Boston-area IPOs

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2010Rank Company Market Value (M) 2009 Revenue (M)

1 EMC $44,960 $14,026

2 American Tower Corp. $20,730 $1,724

3 Thermo Fisher Scientific $20,350 $10,110

4 Genzyme Corp. $18,470 $4,495

5 Biogen Idec $15,470 $4,377

6 Analog Devices $10,490 $2,015

7 Boston Scientific Corp. $10,290 $8,188

8 Akamai Technologies $9,030 $860

9 Waters Corp. $7,190 $1,499

10 Vertex Pharmaceuticals $6,960 $102

11 Nuance Communications $4,940 $950

12 Iron Mountain $4,470 $3,014

13 Skyworks Solutions $4,310 $1,072

14 Hologic $4,190 $1,680

15 Monster Worldwide $3,010 $905

16 Acme Packet $2,800 $141

17 Bruker Corp $2,540 $1,110

18 Parametric Technologies Corp. $2,480 $1,010

Public Company Ecosystem33 Innovation companies with market cap > $1B

21--Confidential

2010Rank Company Market Value (M) 2009 Revenue (M)

19 Varian Semiconductor $2,400 $832

20 Novell $1,960 $862

21 Charles River Laboratories Int’l $1,920 $1,203

22 VistaPrint Ltd. $1,770 $670

23 Progress Software Corp. $1,680 $494

24 Sapient Corp. $1,660 $667

25 American Superconductor $1,530 $316

26 Haemonetics Corp. $1,450 $629

27 athenahealth $1,400 $189

28 Cubist Pharmaceuticals $1,370 $560

29 Parexel International Corp. $1,170 $1,336

30 Pegasystems $1,110 $264

31 GT Solar $1,090 $733

32 Alkermes $1,030 $178

33 LogMeIn $1,050 $79

Public Company Ecosystem (2)33 Innovation companies with market cap > $1B

22--Confidential

Future IPO Candidates (not incl. Flybridge portfolio!)

23--Confidential

Expansion of Major Tech Companies

24--Confidential

Expansion of Major Tech Companies (2) (new: Mouse Ears!)

25--Confidential

Start-up Resources

More resources can be found at: http://dondodge.typepad.com/the_next_big_thing/2009/10/boston-startup-events-resources-people-you-need-to-know.html

26--Confidential

Conclusion: Boston Ranked #1 City of Global Innovation Economy

#1 Boston

www.massitsallhere.com