New Study Finds That 55 Percent of Entrepreneurs Think Boston is Becoming Increasingly Attractive as a Startup Hub Biotech, big data and edtech sectors considered to be the most "vibrant" in Boston
BOSTON, Aug. 15, 2013 /PRNewswire/ -- Ninety-two percent of Boston-area entrepreneurs say that the city's appeal as a startup community is either improving or equally attractive compared to last year, according to a new survey published by the New England Venture Capital Association (NEVCA). The survey of 140 Boston-based entrepreneurs revealed that Boston's reputation as a strong, vibrant and supportive community for entrepreneurs is improving, and that 89 percent said that they're happy with their overall lives. An infographic illustrating what's driving innovation in New England can be viewed at www.facebook.com/newenglandvc.
Access to funding, the lifeblood of startups, is a strong suit for Boston's startup community, according to the survey. Despite persistent talk of a Series A crunch for entrepreneurs, NEVCA's research found that 64 percent of Boston-based entrepreneurs report that early-stage funding (seed and Series A funding) is the most accessible type of funding in Boston. Only 15 percent of entrepreneurs said that Series B and C rounds were the most accessible. Survey respondents praised Boston's VC community as "smart, warm and hard-working."
Overall, Boston-based entrepreneurs are a happy bunch, according to NEVCA's research. Despite coming off several lean years post-recession, 66 percent of entrepreneurs report that they're happy with the performance of their companies. Meanwhile, 89 percent said that they're happy with their overall lives.
"New England is home to hundreds of industry-changing startups that sprout or relocate here from other cities," said C.A. Webb, executive director of the NEVCA in Cambridge. "Boston is such a hotbed of new ideas turning into new companies because local entrepreneurs are supported by a deep and diverse startup ecosystem. In particular, we are fortunate to have a wide variety of local funding options, from seed investors willing to take a risk on disruptive new technologies, to experienced VCs who are constantly searching for the next category leaders."
Other findings in the survey include the fact that the biotechnology cluster is considered to be the most attractive and vibrant sector in Boston (89 percent), with big data (71 percent), education technology (68 percent) and application software (67 percent) following close behind in terms of how attractive Boston is for those industries.
"We could not have imagined launching our startup in any other city besides Boston. The city's unique combination of amazing technology talent and smart and accessible VCs made Boston the perfect city for us," said Sravish Sridhar, founder and CEO of Kinvey, who was also named Rising Star Entrepreneur at the 2013 NEVY Awards, hosted by the New England Venture Capital Association.
The survey also found:
- Seventy-nine percent of entrepreneurs say they do not anticipate moving during the next 12 months.
- Forty-four percent of entrepreneurs say the VC community is very supportive; 37 percent say VCs are somewhat supportive and 19 percent say VCs are not very or not at all supportive.
- Seventy-three percent of the survey's entrepreneur respondents were male; 27 percent were female.
- Fifty-one percent of the entrepreneurs had received venture capital funding; 37 percent had received angel funding and 20 percent were currently not seeking any outside funding.
The New England Venture Capital Association commissioned independent research firm Hawk Partners to create a survey designed to gauge the perception of Boston and its startup community among Boston-area entrepreneurs. Hawk Partners received responses from 140 entrepreneurs, ranging from those who are at the pre-seed funding stage, to VC-backed startups, in May.
About the New England Venture Capital Association
The New England Venture Capital Association (http://www.newenglandvc.org) represents more than 700 venture capital professionals from 90 top firms, collectively managing more than $50 billion in investor capital. Its mission is to help ideas that matter become local businesses that benefit entrepreneurs, investors, and the world. To do so it advances the collective interests of member firms in keeping the region competitive, championing emerging and proven venture-backed companies, maintaining strong connections to local universities and talent, and supporting the region's thriving startup community.
SOURCE New England Venture Capital Association