A SKILLED VENTURE TEAM
the RIGHT EXPERIENCE, PASSION and CAPITAL to FUEL YOUR SUCCESS
ABOUT US
ABOUT US
MassVentures is a venture capital firm focused on fueling the Massachusetts innovation economy by funding early-stage, high-growth Massachusetts startups as they move from concept to commercialization.
MassVentures focuses on Series A investments and considers occasional and opportunistic seed rounds. We provide capital for first-time CEOs and/or founders and consider industry segments not adequately served by the venture community.
Our track record of success combined with our expertise, contacts and support for entrepreneurs makes MassVentures an attractive venture partner for early-stage companies in Massachusetts.
HISTORY
Formerly known as the Massachusetts Technology Development Corporation (MTDC), MassVentures was formed in 1978 as a quasi-public corporation by the Commonwealth of Massachusetts to address the capital gap for start-up companies and to encourage the growth of early-stage technology firms. MassVentures’ enabling and governing legislation is Chapter 40G of Massachusetts General Laws as amended in 1993 and 2002.
INITIAL FUNDING
Initial funding for MassVentures came from a $2 million grant awarded by the Economic Development Administration (“EDA”), a division of the U.S. Department of Commerce, in 1979. These funds were used to establish a revolving loan fund for Massachusetts companies with operations involving a significant amount of technology. These companies also were required to be located in an “EDA” eligible area. In 1981, the EDA awarded MassVentures an additional $1 million for a second revolving loan fund to assist in the creation and development of small, innovative, high-technology companies in Massachusetts, and the Commonwealth of Massachusetts provided $1 million in matching funds. After that, each year, from 1982 to 1988, the Commonwealth appropriated additional funds totaling $4.2 million, which allowed MassVentures to create its first venture capital fund, called the Traditional Fund. This Fund is operated as an “evergreen fund” which uses gains realized from past investments as the primary source of funds for its operations and for investments. The legislature appropriated $5 million to MassVentures as part of the 2004 Economic Stimulus Bill and $2.5 million as part of the 2006 Economic Stimulus Bill.
Investment Team
The members of the MassVentures investment team are skilled professionals from the venture and finance industries. Our goal is to be patient, supportive advisors, providing you the right amount of support and guidance to grow your company here in the Commonwealth.
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BOARD OF DIRECTORS
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FAQS
What is MassVentures typical investment size?
MassVentures first investment in a company is typically a $250,000 -$500,000 investment in a Series A round. MassVentures will maintain sufficient reserves to be able to fund its share of follow-on financings. Occasionally MassVentures will make seed investments. This investment is typically up to $100,000 in the form of a convertible note.
At what stage of a company’s life will MassVentures invest?
MassVentures typically invests in a company that is pre-revenue but has developed software or a prototype product.
What kinds of investment vehicles does MassVentures use?
MassVentures uses traditional venture capital instruments such as preferred stock or convertible notes.
Does MassVentures lead investment rounds?
Yes.
What industries does MassVentures invest in?
MassVentures will invest in technology-driven companies across a broad range of industries. In recent years, MassVentures has invested in healthcare IT, industrial automation & robotics, internet & digital media, green tech, mobile, security and systems & software. Because the Commonwealth of Massachusetts has a clean energy center and a life science center, it will not invest in those two sectors.
How much prior capital does a company need to have raised?
There is no minimum amount of capital that the company needs to have raised. However, MassVentures always looks for co-investors to participate in the syndicate and prefers to invest less than 50% of the money raised.
Does a company need to have a complete management team?
It is not reasonable to expect seed and early-stage companies to have a complete management team. For example, a Series A company does not need a full-time CFO. The company needs a management team that brings relevant domain expertise, a strong marketing focus, and the skill set in developing and growing the required technologies that the company will depend upon.
What materials do I need to provide MassVentures for them to assess its interest in a possible investment?
MassVentures requires a pitch deck and/or an executive summary. A submission form can be found here.
Will MassVentures invest into LLCs or partnerships?
No, not as a general rule. MassVentures always seeks to leverage its capital along with other investors, many of whom explicitly avoid investing in LLCs or partnerships.
Does MassVentures require board participation or observation rights?
Generally, yes.
How long is the typical MassVentures diligence process?
As long as it takes to get comfortable with the technology, the market opportunity, and the management team. If this can be conveyed and verified cleanly and quickly, the due diligence process can take as little as two months. In many cases, due diligence raises further questions and uncertainties that need to be resolved before MassVentures is prepared to make an investment decision.
How does MassVentures add value to early-stage companies?
MassVentures has worked with over 130 established companies in Massachusetts. Our team is experienced with the growing pains and challenges that startup companies face and have a broad network of support to help young companies get established. MassVentures also works hard to help its portfolio companies access its subsequent rounds of capital and investments.
Does MassVentures have a geographic requirement or limitation?
MassVentures investments must have and maintain a significant portion of their operations in Massachusetts.
Does MassVentures sign NDAs as part of the investment process?
No, MassVentures will not sign an NDA. We advise applicants not to disclose anything proprietary or confidential. Under state statute, confidential information submitted by portfolio companies to MassVentures is not subject to freedom of information requests and remain confidential.