Sponsored by the University of Massachusetts. Here for the Commonwealth. Here for a reason.
The Venture Development Center at UMass Boston
In looking at Boston’s venture accelerators and incubators’ ability to develop leading companies such as Ministry of Supply, CoachUp, EverTrue and Localytics, mentorship plays a critical role.
While other incubators/accelerators such as MassChallenge, Techstars and career accelerator Startup Institute develop companies and entrepreneurs across a broad range of industries; the Venture Development Center at the University of Massachusetts Boston is specifically building promising companies impacting one of Boston’s most lucrative and cutting-edge industries.
As Boston furthers its position as a worldwide leader in life sciences and healthcare, the emergence of biotechnology and life-science startups has added another dimension to this powerful industry.
The network of entrepreneurs at the VDC have vast investment and operational expertise in dozens of well-known Boston-based technology and life science companies, and they have helped VDC startups bring in a collective investment of $123M, with an average investment of $2.9M per company.
That’s a higher average rate than MassChallenge ($1.14M) and Techstars ($1.8M), and comparable to Y Combinator ($3.56M).
Michael Gaiss, founder of ThinkB1G, is an entrepreneur-in-residence at the Venture Development Center.
Michael Gaiss, founder of ThinkB1G, is among the stable of entrepreneurs guiding the life science and tech companies working at the VDC. He credits the incubator’s access to university resources, state-of-the-art laboratories and core facilities including first-class wet laboratories, and an entrepreneur-friendly model that doesn’t require companies to give up equity as contributors to the center’s success.
The work of Gaiss and his fellow entrepreneurs-in-residence — Jim Counihan, David Lucchino, John Hamilton and David McFarlane — has led to the launch of companies with a potential for large-scale impact in the biotech, healthcare and mobile technology industries, such as enEvolv.
“EnEvolv was co-founded less than a two years ago by Harvard genetics professor George Church,” said Gaiss. “Already, the company is a leader in a new generation of bioengineering companies that genetically engineers microorganisms to sustainably produce industrial chemicals.”
The VDC boasts a 93 percent fundraising success rate for member companies, and the key to that stat is the entrepreneurs-in-residence’s expertise in nailing down the “right” investment.
“It’s important to first ask what is the right type of investment for the stage of the business. That could include bootstrapping, grants, friends and family, crowd funding, angels, institutional venture capitalism, or corporate venture capitalism,” said Gaiss. “Once you’re into the need for professional money, the key is to avoid wasting time by casting a broad net. Focus on those who know your business or industry and are in a position to help.”
Even more impressive: 74 percent of the funded companies are still in business — a stat that advances the VDC’s reputation as one of the top incubators in the nation.
What’s the secret behind the sustained success of these companies? According to Gaiss, patience and perseverance.
The VDC has helped startups bring in a collective investment of $123M, with an average investment of $2.9M per company. - @umassvdc
“Focus on solving customer problems, but also be in tune with the marketplace to evolve the value proposition and business accordingly. Nearly every startup has changed their business model at least once,” said Gaiss. “In terms of growing the business, know when to shift the focus from building the initial product and team to scaling the organization. This requires developing early employees as company builders (not a fit for everyone) or bringing in additional outside talent to do so.”
Although the VDC was founded in 2009 as part of UMass Boston, the program welcomes entrepreneurs and startup teams from throughout Boston’s thriving educational community — including Harvard and MIT — and outside institutions such as Yale.
According to Gaiss, the innovation community now has the highest density of startups in the world between Boston and Cambridge. And as Boston looks to scale of our innovation ecosystem, the VDC’s commitment to community collaboration is something other thought leaders and influencers can embrace in order further our position as a world-class leader.
“Proactive engagement and breaking down the barriers for startups to connect with a university are at the core of accomplishing this,” said Gaiss.
He explains how Boston’s higher-education cluster can engage startups and connect them with student entrepreneurs in order to promote future innovation and growth.
“To establish a lasting foundation that leverages and nurtures student involvement, universities need visionary administrators with support across the institution to implement and execute compelling programs that nurture the local innovation ecosystem and engage the broader startup community,” said Gaiss.
“Universities need to make it as easy as possible for startups to connect with students, professors, and administrators around areas of common interest," said Gaiss. "This is especially the case for those that are outside the main entrepreneurial hub.”
The VDC has become a national player in the accelerator/incubator landscape, and it’s producing promising Boston-area startups contributing to the long-term success of our entrepreneurial community.
Main image via Marilyn Humphries, UMass Boston's Venture Development Center.
Image of Michael Gaiss via UMass Boston's Venture Development Center.
