Sponsored by the University of Massachusetts. Here to serve the Commonwealth and the common good. Here for a reason.
The Venture Development Center (VDC) at UMass Boston
It’s estimated that up to 25% of inpatient admissions in the newborn and pediatric populations are due to inherited genetic disorders, which account for more than half of a given hospital’s charges. Parabase Genomics is the Boston-based startup striving to change that stat through a new genetic test optimal for newborns. It completed its first close of $2M Series B Financing in October and expanded into a certified clinical laboratory space in South Boston.
Parabase Genomics is also among the many successful launches out of the Venture Development Center (VDC) at UMass Boston.
Boston has a reputation for embracing innovation and entrepreneurship. From the Hub’s thriving higher education scene attracting some of the best young minds in the country to the city’s enthusiastic tech community, it’s easy to see why Boston is fast becoming a national leader in innovation. With former startups like Wayfair and HubSpot going public as established industry leaders, hopeful entrepreneurs are taking advantage of this momentum to start companies of their own.
It’s harder to see the how. No matter how disruptive of an idea you have, it takes a lot of hard work to turn that idea into a successful company – even more so for a company that stays in Boston. That’s why many startups and hopeful entrepreneurs seek out the assistance of business incubators. Business incubators are organizations whose goal is to help startups and early stage companies grow and succeed, which in turn helps companies gain investors.
Incubators hope to give promising small startups access to the space, resources and guidance needed to help them successfully launch their business.
The VDC is doing just that. Founded in 2009, the VDC is an incubator focused on life science and technology entrepreneurship. It’s dedicated to helping talented people and their fledgling businesses find the right facilities, business expertise and supportive community that turns an idea into a business. So far, the VDC boasts an incredible success rate. The startups that have gone through the VDC incubator have a 93% fundraising success rate and average $6.2M in investment, placing the VDC among the most successful incubators in the nation.
2014 proved to be a hallmark year for the VDC in both startup successes and for the center itself. Late year investments pushed the amount raised by companies to over $100,000,000. This past spring, the VDC received over $575K in grant money toward the construction of the center’s fifth ready-to-use wet laboratory and a core facility with shared equipment. This will provide even more resources for life-science startups (they added three new startups in 2014). Not only will this grant money help improve facilities, but it will also help create more internship opportunities for students – continuing to feed the Boston area’s robust life-science workforce.
The VDC has a plethora of offerings to help young businesses get on the right track. Their highly respected entrepreneurs-in-residence program connects successful entrepreneurs with new businesses to provide guidance and insight. Among a competitive higher ed community of rankings and top 10 lists, the VDC remains unique in its inclusivity. Though it is run by the University of Massachusetts Boston, collaboration – not competition – is the name of the game. The VDC welcomes teams from different universities, including Harvard, Yale, and MIT, to join the incubator, resulting in a supportive, entrepreneurial community that shares tips, challenges, and triumphs on a much larger scale.
The workspace available at the VDC is also top of the line. From private labs and cutting edge equipment to private offices, team spaces, co-working spaces and community spaces, there is something for every type of company. This commitment to community, facilities and flexibility shows. Whereas only 2% of startups that look for investors successfully secure funding, the VDC’s 93% fundraising success rate speaks for itself.
So what’s next for the VDC? With 25 companies in residence, applications are open for 2015. The VDC is focusing on big data startups in life science, healthcare and business. Continuing its momentum, there are sure to be new launches and successful funding rounds for the VDC community members in 2015. One is already underway.
Image via Marilyn Humphries, UMass Boston's Venture Development Center
