Startup funding this year hit some significant peaks: the year’s not done yet, but in August, according to Crunchbase, Boston was set to overtake venture capital investment in New York City with $5.2 billion. With that amount, Boston is second only to Silicon Valley. Statistically, biotech and health care lead as the most well-funded industries, but the city’s diversity means the funding’s also going to AI, consumer apps and other industries.
The numbers show that the VC startup environment is shifting to fewer deals with higher amounts. The 15 startups below raised a total of $2.17 billion, all from venture capital firms and investors outside Massachusetts. The big winner, local “unicorn” Moderna Therapeutics, raised $625 million all on its own. We’re highlighting some high performers, some well-known local companies and some rising stars—and each raised $50 million or more in VC funding this year.
Algorand HQ: Boston, MA Launched: 2017
MIT spinout Algorand works to fulfill the promise of blockchain for businesses through “decentralization, scalability and security.” In October, they raised $62 million in a new round of funding led by a consortium of global investors from Asia, South America and Silicon Valley. Existing investors including Union Square Ventures (New York) also participated.
Cambridge Innovation Center (CIC) HQ: Cambridge, MA Launched: 1999
The CIC serves as a coworking campus for startups and innovators, and they’ve expanded beyond Kendall Square to include Boston, St. Louis, and even as far as the Netherlands and ultimately Poland in 2020. They raised $58 million in an equity investment from HB Reavis (Luxembourg), a European real estate developer, which it will use to expand its campuses.
Circle HQ: Boston, MA Launched: 2013
This local fintech and cryptocurrency company helps clients to send and receive money around the globe. They recently announced a partnership with Bitmain, the China-based bitcoin miner, which led a Series E funding for $110 million. The funds will support development of new “tokenized US dollar coins.” Existing investors plus new ones Blockchain Capital (California) and Tusk Ventures (New York) participated.
Desktop Metal HQ: Burlington, MA Launched: 2015
Desktop Metal makes and sells metal 3D printing devices so that they can be more accessible. In March, the company raised $65 million to help bring their printers to more manufacturers: investors included Ford Motor Company (headquarted in Michigan), BMW (headquartered in Germany) and Future Fund (Australia). It’s total fundraising has now reached $277 million, and it became a unicorn in 2017.
Devoted Health HQ: Waltham, MA Launched: 2017
Devoted Health pairs with providers to offer seniors with Medicare Advantage plans individualized assistance with personal guides and technology support. In a Series B funding, which was led by Andreessen Horowitz (California), the company raised $300 million. Investors included PremjiInvest (India) and Uprising (California). Devoted Health raised $62 million in 2017.
Fuze HQ: Boston, MA Launched: 2006
This cloud-based communications platform provider enables easy transitions between voice, video, messaging and content sharing for workforces. Following a new platform launch, Fuze raised $150 million in a funding round. The company saw support from new investor Bessemer Venture Partners (California) as well as existing investors.
Hopper HQ: Cambridge, MA/Montreal, Canada Launched: 2007
Hopper’s a travel booking app that uses machine learning and tons of data to predict airfare, hotels and more and help customers get the best deals. In October, they closed $100 million in Series D financing—one of the biggest in Canada’s history—led by OMERS Ventures (Canada). New investor Citi Ventures (New York) joined existing investors including Brightspark Ventures (Canada) and CDPQ (Canada).
Indigo Agriculture HQ: Boston, MA Launched: 2013
This agtech company based in Charlestown is hoping to reorganize the agricultural industry by focusing on sustainable, healthy, and natural farming, particularly by using plant microbes to improve the health and productivity of crops. In 2017, they raised $156 million in a Series D, becoming a unicorn; in September, it launched a Series E round. They raised $250 million with investors Baillie Gifford (United Kingdom), Investment Corporation of Dubai (Dubai) and the Alaska Permanent Fund (Alaska).
Moderna Therapeutics HQ: Cambridge, MA Launched: 2010
Valued at $7 billion, Moderna Therapeutics is the most valuable startup in Massachusetts, according to Pitchbook, and a local unicorn. They’re a leader in developing mRNA therapeutics and vaccines, a new class of medicine that will actually be able to direct human cells to produce proteins. They raised $625 million across two late-stage rounds; in February 2018, they closed a $500 million Series G round from investors that included Viking Global Investors (Connecticut) and Sequoia Capital China (China). Moderna also recently went public in the biggest biotech IPO in history.
Starry HQ: Boston, MA Launched: 2014
50OnFire winner Starry is all about providing fast, cheap Wi-Fi without bad service or expensive plans by using high-frequency radio technology. It’s had two funding rounds since its launch, the latest in 2018. Their Series C raised $100 million and their investors include KKR (New York), FirstMark Capital (New York) and Tiger Global (New York). The money will help them work to be competitive against cellular giants like Verizon.
TCR2 Therapeutics HQ: Cambridge, MA Launched: 2015
TCR2 is a pharma company that is developing new, innovative T cell therapies to treat cancer by recognizing and killing those cells. It’s had three rounds of funding so far since it launched; in March 2018, they closed a $125 million Series B funding that included lead investors 6 Dimensions Capital (Shanghai) and Curative Ventures (Texas).
Toast HQ: Boston, MA Launched: 2011
The point-of-sale and restaurant management platform boasts a single platform for all restaurant operations needs. It became a local unicorn in July by raising $115 in a Series D round. The round was led by T. Rowe Price Associates, Inc. (headquartered in Maryland), and participation from new investor Tiger Global Management, LLC (New York).
True Fit HQ: Boston, MA Launched: 2011
True Fit helps retailers provide personalized experiences for shoppers using AI. They have hundreds of clients worldwide, including big names like Nordstrom and Ralph Lauren. In total, they’ve had six rounds of funding, but the latest was a $55 million Series C round in January led by Georgian Partners (Canada). Investors included new Cross Creek Capital (Utah) and existing investors Jump Capital (Illinois), Signal Peak Ventures (Utah) and Intel Capital (California).
Workable HQ: Boston, MA Launched: 2012
Workable makes cloud-based recruiting software that aims to give employers all the tools they need to make good hires. They raised $50 million in a Series C round led by Zouk Capital (United Kingdom). They also received support from existing investors including 83North (United Kingdom), Balderton (United Kingdom), Notion (United Kingdom) and TriplePoint (California).
XebiaLabs HQ: Burlington, MA Launched: 2008
XebiaLabs helps companies deliver software more quickly and with less risk. They have big-name customers including NASA and Bank of America, and the ended 2017 by growing by 117 percent. In February, the secured an over $100 million Series B investment. Alongside existing investors, new investors included Susquehanna Growth Equity (Pennsylvania) and Accel (California).
