Officially known as the Commonwealth of Massachusetts, the state is located in the North-Eastern part of the U.S. and spans an area of 10,554 sq. mi (27,336 sq. km). Massachusetts shares its border with New Hampshire, Rhode Island, Connecticut, Vermont, and New York. The state’s economy is primarily driven by high technology, communications and electronics, while agriculture plays a limited role. Education is woven into Massachusetts’ social and cultural life as its home to many of the country’s oldest and most prestigious educational institutions like Harvard University, Massachusetts Institute of Technology, and Boston University. From startups that are revolutionising cell and gene therapy to those that are digitally transforming factories, Massachusetts is home to some of the most exciting startups the U.S. has to offer.
The analysis is based on data from Crunchbase, and overall, 124 startups have been analysed. Startups considered for this analysis are private entities that were founded in 2009 or later and have raised more than US$ 100 million of capital to date.
The startups have been classified according to various industries based on data from Pitchbook, and the sector classification is based on the Global Industry Classification Standard (GICS). The sector classification is subjective. Around 44% of the startups were founded between 2009 and 2014, while the rest were founded between 2015 and 2020.
Close to 50% of the funding or US$17.87 billion has flowed towards the health care sector. The sector is home to 60% of the startups. Prominent industries within this sector include drug discovery (US$8.23 billion) and biotechnology (US$3.15 billion).
Founded in 2017, ElevateBio is a Cambridge, Massachusetts-based startup that is a creator and operator of a portfolio of cell and gene therapy companies. It offers an environment where scientific inventors can transform their visions for cell and gene therapies into reality for patients with life-threatening diseases. Sitting at the heart of ElevateBio’s vision is BaseCamp, a centralised state-of-the-art innovation and manufacturing centre that provides fully integrated capabilities, including clinical development, process development, among others. The startup has raised US$845 million to date, and its latest funding round was in Mar 2021, where it raised US$525 million.
Backed by Khosla Ventures, Scipher Medicine is a precision medicine platform that determines which drug will work best for each patient. Powered by AI and network science, the company’s platform identifies a patient’s unique disease signature, predicts drug response to approved drugs and identifies novel drug targets for patients not responding to existing therapies. The startup has raised US$117 million in five funding rounds between 2016 and 2021.
The information technology sector has attracted US$8.44 billion in funds, or 23.5% of the total. The sector is home to 21% of the startups. Prominent industries within this sector include network management software (US$3.79 billion) and business productivity software (US$2.57 billion).
Founded in 2014, Tulip is a manufacturing development platform that is designed to digitally transform factories. The Somerville, Massachusetts-based startup connects people, machines, devices, and the systems used in a production or logistics process in a physical location. Tulip has various use cases, including providing real-time production visibility, training new employees, and digitising lean manufacturing practices. The startup has raised around US$153 million to date and has the backing of investors like Insight Partners and New Enterprise Associates.
Backed by SoftBank’s Vision Fund, Formlabs is a 3D printing platform that specialises in printing parts with complex geometries. The startup offers a range of 3D printers, materials and serves multiple industries, including engineering, entertainment, dental and jewellery. The startup has raised US$254 million in nine funding rounds.
Around 5.1% of the funds or US$1.83 billion has flowed to the industrial sector. The sector is home to 6% of the startups. Prominent industries within this sector include environmental services (B2B) (US$430 million) and other commercial services (US$354.6 million).
Locus Robotics is a Wilmington, Massachusetts-based developer of autonomous mobile robots that simplify and automate warehouse and e-commerce operations. The robots work with human workers to improve piece-handling productivity, helping clients manage both labour costs and fluctuating order volume. The startup has raised US$299 million in the last five years, of which US$200 million was from this year alone. It is backed by investors such as Tiger Global Management and Scale Venture Partners.
Founded in 2014, SmartLabs is a Boston, Massachusetts-based startup that provides Labs-as-a-Service for pharmaceutical scientists. It is the first enterprise-grade lab platform that supports workflows at every stage of development. It is a lab where one can do any type of research on-demand without being burdened by lease, build-out, or infrastructure requirements. The startup has raised US$354 million from investors such as Winslow Capital and ArrowMark Partners.
Overall, 124 startups have raised a staggering US$35.89 billion. A majority (63%) of the startups have raised funds within one to five rounds, and only 7% of the startups have raised 10+ rounds. Health care and information technology were the two largest sectors accounting for 73% of the funds and 81% of the startups. For 28% of the startups, Series B was their latest funding round, followed by Series C with 18% and unknown venture series with 14%. The median total funding amount was US$177 million, and the median number of funding rounds were five.
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