Massachusetts and its ever-growing IT landscape. A story that never goes old and keeps getting discussed by tech journalists and startup investors.
Recently, Ron Miller in a discussion said;
“To build a startup culture, a city or region needs some key elements in place — like an innovation engine to drive startup ideas. It needs a couple of successful exits, which in turn drives angel investing as entrepreneurs growing increasingly wealthy look to help new founders building companies reach their own goals.
Boston has all of these elements, starting with a long history of innovation, perhaps not surprising when considering the 44 colleges and universities located in the metro Boston area.”
So, does Massachusetts have such an active startup scene backed by exceptional VC firms?
Well, it’s a big yes in both scenarios. Let us help you with a list of the top startup investors in Massachusetts, funding IT startups.
Discover The List of The Top VC Firms in Massachusetts Who Fund IT 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, EdTec | 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 |
Bain Capital
- Contact: support@intralinks.com
- Website: Bain Capital
- Focused Sectors: Tech
- Funding Stages: Early and Growth
- Present in: Massachusetts
- Notable Investments: Venminder, 4moms, and Rubrik.
- Total Investments: 1,314
General Catalyst has established itself as a leader in venture capital by backing some of the world’s most innovative tech startups. Founded in 2000, General Catalyst’s approach is defined by its commitment to empowering visionary founders with disruptive ideas.
Moreover, Bain Capital Ventures, the venture arm of Bain Capital, has funded over 1,000 startups across dozens of sectors. The team of investors focuses on businesses that exhibit high potential for innovation and scalability.
The investment range of Bain Capital lies between $500,000 to $50M.
Matrix VC
- Contact: Matrix
- Website: Matrix
- Focused Sectors: Tech and Healthcare
- Funding Stages: Early and Seed
- Present in: Massachusetts
- Notable Investments: Fivetran, Canva, Afterpay, Oculus, and Zendesk
- Total Investments: 774
Matrix Partners is one of the most prominent venture capital firms in Massachusetts.
Over its decades-long history, Matrix Partners has invested in over 700 startups and seen 154 exits. They have raised multiple funds, with their latest being an $800 million fund dedicated to early-stage companies.
Moreover, Matrix looks for founders who are builders, often with previous startup experience, and aims to provide not just capital but also guidance and support through the concept and scaling phases. The firm typically invests between $100,000 and $1 million in each company.
Spark Capital
- Website: Spark Capital
- Focused Sectors: Tech
- Funding Stages: Early and Seed
- Present in: Massachusetts
- Notable Investments: Twitter, Slack, and Oculus
- Total Investments: 766
Spark Capital was founded in 2005 by Paul Conway, Santo Politi, Todd Dagres, Alex Finkelstein, and Bijan Sabet. It is a prominent venture capital firm with headquarters in San Francisco and additional offices in Boston and New York.
Over the years, Spark Capital has funded around 700 startups, many of which have now achieved unicorn status. The firm has achieved 175 exits, including high-profile buyouts and acquisitions.
They prioritize industries like digital media, fintech, and software-as-a-service (SaaS), but also invest in unique opportunities across other sectors. Spark Capital looks for companies that are early in their growth journey, though they also invest in growth-stage firms.
The average check size of Spark Capital is around $2M.
MassVentures
- Contact: info@mass-ventures.com
- Website: MassVentures - Fueling Early Stage Companies in Massachusetts | MassVentures (mass-ventures.com)
- Focused Sectors: clean energy, biotechnology, AI, and information technology
- Funding Stages: Early/Late
- Present in: Massachusetts
- Notable Investments: Aclarity, Armored Things, Applause, and MachineMetrics
- Total Investments: 505
Founded in 1978, MassVentures is a venture capital firm based in Massachusetts, dedicated to promoting innovation and economic growth in the region. It was initially created as part of the Massachusetts Technology Development Corporation (MTDC), focusing on supporting early-stage startups. Over the years, MassVentures has funded 411 startups across various stages, with 57 successful exits.
The firm typically invests in seed and early-stage companies, with an average round size of $2 million.
Moreover, MassVentures conducts 10-20 pitching competitions every year, investing in over 40 startups. The network actively seeks companies that align with their mission to foster local innovation and economic development.
The investment range of Mass Ventures can range up to several million dollars.
Advanced Technology Ventures
- Contact: info@atvcapital.com
- Website: ATV - Advanced Technology Ventures (atvcapital.com)
- Focused Sectors: information technology, life sciences, healthcare, and cleantech
- Funding Stages: Early and Growth
- Present in: Massachusetts
- Notable Investments: Tech Buzz US, Nuvaira, EndoGastric Solutions, and Gynesonics
- Total Investments: 294:
Advanced Technology Ventures (ATV) is also an active VC firm in Massachusetts. The firm focuses on investing in early to growth-stage companies.
Moreover, the firm usually invests in startups based on their total addressable markets and estimated ROI. The investors highly prefer startups that are at the Series A, and Series B rounds.
The average check size of Advanced Technology Ventures is around $1M.
PJC Investors
- Contact: info@pjc.vc
- Website: Experienced Boston venture firm with a start-up mindset (pjc.vc)
- Focused Sectors: digital media, e-commerce, fintech, healthcare IT, and consumer products
- Funding Stages: Early and Seed
- Present in: Massachusetts
- Notable Investments: Expensify, Nest, BlockFi, Nexamp, Yandex, and GetWell Network
- Total Investments: 195
PJC, formerly known as Point Judith Capital, is an early-stage venture capital firm that was founded in 2001. With headquarters in Boston, Massachusetts, PJC focuses on partnering with innovative entrepreneurs who are driving future technologies.
PJC investors primarily invest in early-stage companies. They target startups that are shaping the future and are led by experienced founders.
Throughout the past, PJC Investors have funded many startups and generated more than $16.5 billion in equity value across its portfolio companies. The firm also arranges many startup incubators and accelerator programs to help founders connect with investors.
The investment range of PJC Investors lies between $500,000 to $3M.
What Should You Have Prepared for Your Investor Meeting?
Even after finding the perfect VC firms to pitch to, the first investor meeting always remains a strong challenge to overcome.
Here are 5 tips that will help you answer all the major questions and secure funding for your startup.
1. Business Overview
During the investor meeting, you should be able to clearly present the key aspects of your business. This includes your company’s mission, the problem you're solving, and how your product or service offers a solution.
2. Financial Projections
A detailed breakdown of your finances is important when explaining your startup idea. Investors expect to see revenue models, cash flow forecasts, and profit margins. Prepare to explain how their funds will be utilized and what return they can expect.
3. Pitch Deck
Your pitch deck is the centerpiece of the meeting, and it should include slides that cover:
- Company Overview:
- Team details:
- Market Opportunity:
- Traction and growth metrics:
- Competition analysis:
- Financial projections :
Be ready to speak about each slide concisely, spending no more than 2 minutes on each.
4. Traction
It’s also important to show revenue growth, customer acquisition, and strategic partnerships. Investors are more inclined to invest if they see evidence that your business has already gained traction
5. Investment Ask
Finally, know exactly how much capital you're asking for and how you will use it. Provide a roadmap that outlines how this investment will help you achieve specific milestones, such as product development or scaling operations.
Wrap-Up:
Summing it up, Massachusetts is home to hundreds of VC firms that are funding startups.
However, to find an investor aligned with your investment interests, it's recommended to do your part by conducting thorough research.