Having over 18 unicorns, the Massachusetts software market has witnessed explosive growth in the last 2 decades. Tech hubs like Boston have been featured in the list of the highest number of unicorns in a city (globally).
However, Massachusetts didn’t achieve this growth alone. In fact, quite a hundred notable names aka VC firms were constantly backing the startup landscape.
Want to know who these investment firms are that have invested trillions of dollars in the previous decade?
Let us help you with the list of top software startup investors in Massachusetts.
Find Out The List Of Top 6 VC Firms in Massachusetts Who Fund Software Startups
| Firm Name | Focused Sectors | Funding Stages | Notable Investments | Total Investments |
|---|---|---|---|---|
| General Catalyst | Enterprise Software, Consumer Internet, Healthcare Technology, Fintech, Education | Early/Growth | Airbnb, Stripe, Snap, HubSpot, Warby Parker | 1,550 |
| CRV (Charles River Ventures) | Software, Consumer Internet, Biotechnology, Financial Technology | Early | HubSpot, Zendesk, Twitter, Yammer, Airtable | 870 |
| Highland Capital Partners | Software, Consumer Tech, Healthcare, EdTech | Early, Late | Lyft, Lululemon, Vistaprint, Baidu, 2U | 650+ |
| Flybridge Capital Partners | SaaS, Consumer Internet, Healthcare IT, FinTech, Deep Tech | Early, Seed | MongoDB, Firebase, Open English, Bowery Farming | 296 |
| NextView Ventures | Tech | Early | ThredUp, Attentive, TripleLift, DraftKings | 293 |
| Underscore VC | Tech | Early, Seed | Soofa, Pando | 102 |
General Catalyst
- Contact: info@generalcatalyst.com
- Website: General Catalyst
- Focused Sectors: enterprise software, consumer internet, healthcare technology, fintech, and education
- Funding Stages: Early and Growth
- Present in: London, Berlin, Boston, Cambridge, San Francisco, Bangalore
- Notable Investments: Airbnb, Stripe, Snap, HubSpot, and Warby Parker.
- Total Investments: 1,550
General Catalyst is a venture capital firm founded in 2000 by Joel Cutler, David Fialkow, David Orfao, and John Simon. It is headquartered in Cambridge, Massachusetts, with offices in San Francisco, New York, and London.
As of 2023, General Catalyst has funded over 600 startups and has participated in more than 150 exits. Their investment strategy focuses on early-stage, growth-stage, and later-stage companies. They are sector-agnostic but tend to focus on modern tech/software startups that are solving problems in data efficiency.
Moreover, the investors from General Catalyst prefer to invest in visionary founders with disruptive ideas who are creating solutions with significant long-term impact.
The investment range of General Catalyst lies between $500,00 to $50M.
CRV (Charles River Ventures)
- Contact: info@crv.com
- Website: CRV | Home
- Focused Sectors: software, consumer internet, biotechnology, and financial technology
- Funding Stages: Early
- Present in: Massachusetts and California
- Notable Investments: HubSpot, Zendesk, Twitter, Yammer, and Airtable
- Total Investments: 870
CRV, one of the oldest venture capital firms in the U.S., has remained a steadfast supporter of early-stage startups since its founding in 1970. Named after the Charles River in Boston, CRV has grown to support both the East and West Coast startup ecosystems.
CRV focuses on early-stage companies, often at the seed or Series A stage. Every year, they arrange 5-8 pitching competitions, selecting over 40 startups that have the potential to grow and generate at least 10x ROI within the next 4 years.
The investment range of CRV lies between 250,000 to several million dollars, depending upon the startup’s target market and estimated ROI.
Highland Capital Partners
- Contact: info@hcp.com
- Website: Highland Capital Partners (hcp.com)
- Focused Sectors: software, internet and consumer tech, healthcare, and education technology.
- Funding Stages: Early and Late
- Present in: US
- Notable Investments: Lyft, Lululemon, Vistaprint, Baidu, and 2U
- Total Investments: 650+
Since 1987, Highland Capital Partners has been a prominent player in the venture capital world, particularly in software, consumer tech, and healthcare. Highland has a track record of backing companies that become industry leaders, including household names like Lyft and Lululemon
Highland Capital prefers to invest in startups that have a strong revenue stream, and experienced founders, and deal in large addressable markets. They select companies that can guarantee huge returns, around 8-15x ROI.
The average check size of Highland Capital Partners is around $5M.
Flybridge Capital Partners
- Contact: info@flybridge.com
- Website: Flybridge | Early-Stage Venture Capital For Ambitious AI Founders
- Focused Sectors: SaaS, consumer internet, healthcare IT, FinTech, and deep tech
- Funding Stages: Early and Seed
- Present in: Boston and New York
- Notable Investments: MongoDB, Firebase (acquired by Google), Open English, and Bowery Farming
- Total Investments: 296
Flybridge Capital Partners is a Boston-based venture capital firm founded in 2001 by Jeff Bussgang, David Aronoff, and Michael Greeley. The firm focuses primarily on early-stage investments, aiming to support startups during their critical growth phases.
Flybridge Capital Partners has funded over 200 startups since its inception, focusing mostly on tech related. The firm has seen over 60 exits, including notable IPOs and acquisitions of companies they have backed.
Flybridge specializes in seed and early-stage investments, typically in industries with high growth potential and innovative business models. The firm seeks out passionate founders who are solving large, impactful problems through software.
The investment range of Flybridge Capital Partners lies between $200,000 to $4M.
NextView Ventures
- Contact: contact@nextviewventures.com
- Website: NextView Ventures - Home
- Focused Sectors: Tech
- Funding Stages: Early
- Present in: Boston and NY
- Notable Investments: ThredUp, Attentive, TripleLift, and DraftKings
- Total Investments: 293
NextView Ventures is an early-stage venture capital firm founded in 2010 by David Beisel, Rob Go, and Lee Hower. The firm is based in Boston, Massachusetts, with a presence in New York City. NextView Ventures is known for its focus on seed-stage investments, particularly in startups that aim to improve the everyday lives of individuals through technology.
NextView Ventures is highly selective, focusing on startups that are building products to enhance everyday experiences in e-commerce, healthcare technology, and FinTech.
The average check size is around $1M.
Underscore VC
- Contact: contact@underscore.vc
- Website: Home | Underscore VC
- Focused Sectors: Tech
- Funding Stages: Early and Seed
- Present in: Boston
- Notable Investments: Soofa and Pando
- Total Investments: 102
Underscore VC is a Boston-based venture capital firm founded in 2015 by Michael Skok, John Pearce and Lily Lyman. The firm focuses on early-stage investments and is known for its unique model that leverages a 'Core Community' of experienced entrepreneurs, investors, and industry experts to provide startup capital and mentorship
The investors at Underscore VC focus on seed and Series A rounds, with a strong preference for startups located in the Boston area and other tech hubs across the U.S. They seek out founders who are building enterprise technology, developer tools, and consumer-facing platforms.
The average check size of Underscore VC lies between $300,000 to $3M.
What Are The Best Ways to Pitch to a VC Firm?
Almost every other startup founder tries to pitch in the same conventional way. Waiting for a pitching competition, submitting a pitch deck online and waiting to get listed.
But! If you want to get ahead of your competitors, let us help by giving 3 ways you can pitch to a VC firm and approach differently.
1. Use Warm Introductions
A warm introduction is the most effective way to approach venture capital.
In most startup competitions, VCs are bombarded with pitches. However, as soon as your startup is introduced by someone they trust, it increases your chances of securing a meeting. This could come through other entrepreneurs they’ve backed, mentors, or industry connections.
2. Change Your Outreach
Personalization is important. Avoid mass emailing or generic pitches.
Research the VC firm and understand their portfolio, investment thesis, and areas of interest. Reference companies they’ve invested in and explain why your startup aligns with their strategy. A brief, engaging email outlining key achievements, your business model, and funding goals can help spark interest.
3. Engage VCs Online
VCs often share thoughts through blogs, LinkedIn posts, and other platforms.
Well, these posts are meant for founders to engage with the content. Although the approach doesn’t guarantee immediate results, consistent engagement will lead to meaningful connections and conversations with the right people.
Wrap-Up:
In a nutshell, Massachusetts has a huge range of VC firms that can invest in your startup and get things kicking.
But, the important thing is, can you present your startup in the right way and prepare a pitch deck that captivates attention?
If not, then we would recommend doing strong research on preparing killer-pitch decks and reading online examples. Good luck pitching to your favorite VC firm.