masschallenge 2012 untapped presentation

DRAFT

January 2010

MassChallenge 2012 UnTapped

#MCUnTapped

Copyright © 2012, MassChallenge, Inc. All Rights Reserved.

MassChallenge mission

To catalyze a

startup renaissance

2

MassChallenge is fostering innovative growth via a startup accelerator and competition

MassChallenge Startup Accelerator

Largest-ever startup accelerator and competition

and the first to support high-impact, early-stage

entrepreneurs with no strings attached


The startup accelerator connects innovators with supporters and resources throughout

Annual $1M Startup Accelerator and Competition

• Anyone can enter, from anywhere, with any startup

• Expert judges identify highest impact, most viable startups

• Everyone gets training and access to networks & resources

• Finalists are matched with mentors and free resources

• Highest impact, most viable startups win awards

• Sponsors, partners, alumni are integrated into all stages

3

Acceleratefinalists

Prepare MassChallenge

Accept applications& prepare entrants

Engage all participants and alumni

2 rounds of judging

Jan 2012

March 1

April 11

May 17

Prepare finalistsfor accelerator

Final Judging

Final ceremonyWeek of Oct 22

Oct 1

2012 Accelerator Dates

June 27


MassChallenge is largest-ever program of its kind and has demonstrated outstanding results

MassChallenge launch event with Governor Deval Patrick, Boston Mayor Thomas Menino, and passionate innovators.

• Largest-ever startup competition and accelerator• 733 applicant startups from 24 countries and 34 states• Over 600 different judges and mentors applied to participate

• Concierge-like support for 125 startups• Office space, mentorship, press/media support and much more• Satisfaction rates among finalists higher than for Apple customers

• President Obama honors MassChallenge for results• Identified as one of best programs in US for high-growth startups

• 2010 class: $100M+ raised & 500 jobs in 12 months4

5Copyright © 2012, MassChallenge, Inc. All Rights Reserved.

MassChallenge has secured support from leaders in each area of innovation ecosystem

Universities

People Businesses &Foundations

Entrepreneurs Angels & VCs

Government

MassChallengeStartup Catalyst

• US President Barack Obama

• MA Governor Deval Patrick

• BOS Mayor Thomas Menino

• 40+ VC and Angel funds involved as mentors/judges

• 20 of top 100 VC funds

• Dozens of individual angels

• Microsoft, Blackstone, Verizon and 15+ more

• Desphande Foundation

• Kauffman Foundation

• 30+ Universities engaged to provide funding, research, students and mentors

• Direct support from Presidents of Umass, MIT Babson, WPI, BU, Northeastern, and Tufts

• Strong support via entrepreneurship centers at Harvard, Dartmouth & many more

• 250+ events including training and job fairs

• Media coverage on Fox Business, CNBC etc.

• Core Sponsors/Advisors:• Desh Deshpande• Josh Boger• Ken Morse

• 733 applications125 startups as finalists


Feedback from startups very positive – 2010 finalist satisfaction exceeds Apple customer enthusiasm

Notes: MassChallenge NPS calculated from data collected in Jan 2011 finalist surveyComparative NPS data from: http://www.netpromoter.com/np/compare.jsp

Net Promoter Score (NPS) US leaders (2010)

•USAA

81%

•Apple

78%

•Amazon

71%

•Trader Joe’s

68%

•Wegman’s

67%

78.3%

"How likely would you be to recommend MassChallenge to a friend?"

(10 = most likely)

Net Promoter Score = % promoters - % detractors

6


MassChallenge 2012 Launch

7

Attend the MassChallenge Launch!• Inviting a select number of sincere potential applicants launch event• Network with top VIPs• Send in your startup’s pitch – focus on IMPACT!!

Apply: http://bit.ly/LaunchMC

Copyright © 2012, MassChallenge, Inc. All Rights Reserved. 8

MassChallenge is designed to engage and benefit the entire ecosystem

Universities

People Businesses

Entrepreneurs Angels & VCs

Government

STARTUPCATALYST

How to get involved

Sign up at www.masschallenge.org for updates

Partner Sponsor

• Volunteer as judge, speaker or mentor

• Help manage and run events

• Multiple sponsorship levels are available

• MassChallenge is a 501(c)(3) nonprofit

Inform Enter 2012

• Spread word to potential entrants,

mentors, judges and sponsors

• 733 entrants in 2011

• Start vetting idea(s) and forming teams

Key opportunities

• Catalyze startup renaissance

• Promote jobs and growth

• Showcase leadership globally


FINALIST INDUSTRY SUMMARY

Altaeros Energies Energy Airborne wind energy

BIOARRAY Therapeutics Life Sciences Breast cancer diagnostics

Blank Label Consumer Affordable custom clothing

Diagnostics for All Life Sciences Low-cost medical diagnostic device

Her Campus Media Consumer #1 online magazine for college women

Localocracy High Tech Online Civic Engagement

Locately High Tech Mobile analytics platform

Novophage Life Sciences Industrial biofilm protection

OsComp Systems Energy Natural gas compression

OsmoPure Social Impact Water purification

Resolute Marine Energy Energy Wave-powered desalination

Sanergy Social Impact Sanitation center network

Seeding Labs Social Impact Empowering scientists in 3rd world

Sproxil Life Sciences Stopping counterfeit drugs

Therapeutic Systems Life Sciences Treatment of autism symptoms

Selected 2010 and 2011 Finalist Profiles

9


Altaeros Energies uses advanced airborne turbines to produce low cost renewable energy

Next Generation Of Wind Energy• Uses safe and reliable aerospace

technology to lift wind turbines into sky • At higher altitude, winds are much

stronger and more consistent• Offers easy mobility & rapid deployment

at remote, military, and offshore sites• Can lower cost of energy by up to 65%

relative diesel generators or renewable tech

Highlights• Team of recent MIT and Harvard graduates has raised several

hundred thousand dollars to test its technology

• Aerostat design could produce 2-5x as much power as pole-mounted, 350ft tall turbine in same location

• 2010 and 2011 MassChallenge Finalist

http://altaerosenergies.com/

10


BIOARRAY attacks breast cancer with a new generation of personalized diagnostic tests

Customized Detection and Therapy• Cutting-edge clinical diagnostics of

breast cancer

• Helps patients and their doctors identify more effective treatment options sooner

• Integrates multiple gene expression platforms and multiple biomarkers to produce an accurate, quantitative diagnostic result

Highlights• Founded by all-female team of experts in the field of biomarker

discovery and breast cancer research

• Core technology has been extensively verified in peer-reviewed academic literature

• 2011 MassChallenge Finalist

http://bioarray.us/

11


Blank Label revolutionizes the fashion industry with affordable mass customization

Pioneering Choice in Fashion• Empowering consumers by letting them

design their own dress shirts

• Variety of fabrics and collar, cuff, and pocket styles

• Under $100 per shirt

• Customers use sophisticated “configurator” software to design their own dress shirts

Highlights• Led by students out of Babson Summer Venture Program

• Featured in the New York Times, BusinessWeek, Stuff, MSNBC, Forbes, Fox News, Boston Globe, and more


http://www.blanklabel.com/

12


Diagnostic devices for 3rd world• Made of paper: simple and effective

• Light-weight, durable, and low-cost

• Requires minimal training, practically no sample preparation, and no electricity or additional equipment

• Easy to use and easy to read

• Reliable and Safe

• Single use, burn when done

Highlights• Enable better medical treatment in emerging markets

• Avoid unnecessary, harmful and expensive drug deployment by increasing availability of accurate diagnosis devices

• Medical care is foundation for stability and community

• 60% of developing world lives beyond reach of urban hospitals

Diagnostics for All saves lives via low-cost, easy-to-use, point-of-care diagnostic devices

13

High-quality diagnostic device

made of paper

http://dfa.org/


Her Campus Media reaches college women across the nation with content generated by students

A Collegiette’s Guide to Life• #1 online magazine for college women

with branches at 125+ colleges

• 9 million college women in USA with spending power of $300B+ per year

• Platform for rising student journalists

• Feeder for top jobs and internships

• HerCampus combines online and offline opportunities to attract and engage

Highlights• Founded by 3 female Harvard grads; named as Inc. Magazine's 30

Under 30 Coolest Young Entrepreneurs

• Highly charismatic and eloquent team with history of success


http://hercampus.com/

14


Localocracy is an online town common to connect residents with local media and govt

Online Civic Engagement• Gather data on the issues that matter

• Virtual voting, commenting, Q&A with• Confirmed Registered Voters• Real people using real names

• Make government more accessible

• Gather feedback quickly and efficiently• Understand how residents will react• Connect directly with constituents

Highlights: Promoting Civic Information and Action• Founded by 2010 UMass Amherst Grad – TEDx Boston speaker

• 2010 MassChallenge Finalist – has won multiple other prizes

• Secured Boston Globe as customer, closed seed round @ $150K

• 2010 and 2011 MassChallenge Finalist

Making government

more accessible

http://localocracy.org/

15


Locately’s technology makes sense of GPS data from opted-in mobile phones

Understanding where people go• 100% opt-in

• Consumers volunteer to share their GPS with Locately

• In return they get rewards: free cash, giftcards, or entry into prize draws

• Like web analytics for the real world

• Understanding where people shop• How they get to/from a given location• Which stores they drive past

Highlights• Founded by recent Harvard/MIT/Stanford grads

• Raised $300K in angel funds and closed key partnerships

• 2010 MassChallenge $100K winner

Pioneering the science of consumer location analytics.

http://locately.com

16


Novophage provides the biological solutions for industrial infrastructure problems

Protecting Against Biofilms• Developing strong anti-biofilm solution

• Biofilms are slimy communities of bacteria that contaminate heating/cooling systems, food-processing plants, hospitals, etc.

• Patent-pending technology utilizes a biological nanoparticle that uses biofilm bacteria’s own machinery to create active agents that act against the biofilm itself

http://www.novophage.com/

Highlights• Scientific founder is 2010 Harvard Med School grad & 2007 MIT

PhD; honored as a top young innovator by MIT Tech Review

• Extremely strong team, mix of young talent and experience

• Recently raise Series A financing for $5.75M

• 2010 MassChallenge Runner Up

17


OsComp reduces commercial and environmental costs with breakthrough compression technology

Highlights• Founded by 2010 MBA MIT Sloan School of Management• Closed $10M of orders w/in 18 months of founding; 10 full-time

employees (plus contractors), 95% of inputs and components are manufactured in US, recently raised $1.5M private investment


www.oscomp-systems.com

Future of Natural Gas Production• Product will enhance the productivity of

natural gas wells and more

• Extend life of well by 15-20 years

• Delivers broad environmental benefits

• Eliminates nearly all well emissions

• 34%+ Higher efficiency = reduced CO2 emissions and reduction in capital costs

18


OsmoPure is a low-cost, highly-portable water purification device using simple membrane filtration

Highlights• Founder is 2009 grad of Rensselaer Polytechnic Institute; charismatic

engineer with clever, high-potential product

• Secured key partnerships


http://osmopure.com

Clean Water in a Pinch• Easy to use

• Fill ordinary plastic bottle with water, screw on OsmoPure, squeeze bottle, and drink water

• Effectively removes all contaminants

• Durable, lightweight, does not clog• Inexpensive; less than $2 to produce, lasts 1

month under normal usage

19


Resolute Marine Energy will complete off-grid wave-driven desalination system by 2012

20

Wave-driven desalination• Superior design and execution

• Low capital and production cost• Off-grid operation using only

renewable resources• Scalable design using reverse osmosis

• Huge market with unmet needs

• Current diesel-driven systems inferior

• Already partnered with municipality in South Africa to launch pilot projects

Highlights• Triple bottom line: financial, social, environmental

• Generate large quantities of clean fresh water for water-stressed, off-grid coastal communities in developing nations where a solution is urgently needed

Energy from waves can generate clean water for coastal communities in

developing nations

http://resolutemarine.com/


Sanergy fights a public health crisis by turning it into an economic opportunity

Ending Sanitation-Linked Diseases• 2.6 billion people lack basic sanitation

• Created affordable sanitation centers

• Pioneering innovative business model

• Franchise network of sanitation centers across the slums to local entrepreneurs

• Collect the waste from each center and convert to electricity and fertilizer

Highlights• Diverse team of graduate and undergraduate students from MIT,

University of Nairobi, Tufts University, and University of Cambridge

• Winner of the 2011 MIT 100K Business Plan Contest and 2011 Echoing Green Fellowship


http://saner.gy/

21


Seeding Labs transforms scientific research at universities across the developing world

22

Talent is Everywhere• Affordable infrastructure

• Reclaim U.S. surplus lab equipment • Reduce waste• Affordably equip whole institutions

• World-class training

• Exchange programs with premiere universities and biotech/pharma

• A global network

• Scientists train, mentor and collaborate

Highlights• Tools and training for scientists in 16 countries already:

• 4000 students getting hands-on training

• 216% increase in research funding

• 60+ publications, 1 patent, 1 medical diagnostic

www.seedinglabs.org


Sproxil’s MPA™ solution helps consumers avoid being tricked into buying fake medication

23

Don’t get ripped off at the chemist• Win + Win + Win

• Consumers avoid harmful fake meds• Pharma companies increase sales• Only counterfeiters lose out

• Scalable

• Easy-to-use text message• Leverages explosive cell phone growth

• Accessible to all

• Free to consumer via ROI for pharma

Highlights• Tackles $200 billion market opportunity

• 700,000 people die worldwide due to fake TB & Malaria meds

• Pharma companies lose $200 B a year due to fake drug sales

• Sproxil closes $1.79m Series A and expands to India


Therapeutic Systems helps people with autism become more engaged in life

Medical Devices to Reduce Anxiety• Novel vest-like device inflates to apply

uniform, deep-pressure – like a hug

• Discreetly and effectively apply deep pressure to an individual anytime

• Demonstrated to reduce anxiety and enable greater engagement in life

• ~4M Americans with autism; 1 in 100 children diagnosed with autism

Highlights• Highly charismatic UMass Amherst grad, elegant, seemingly

simple solution and inspiring outcomes

• Compelling story: parent demand brought device out of lab, which had been developed for over 6 years at UMass Amherst


http://therapeuticsystems.com

24


2011 Entrant Metrics

25


The number of participants in MassChallenge 2011 nearly doubled over MassChallenge 2010

Almost 65% increase in applications over 2010, And almost double the number of participants

Notes: All values self-reported based on “primary industry” and “current headquarters”. 26

0

200

400

600

800

Sector

General

Social Impact

Energy and

Clean Tech

Life Science/

Healthcare

High

tech

Headquarters

International

Other US

MA

Sector

Energy and

Clean Tech

Life Science/

Healthcare

Social

Impact

General

High

tech

Headquarters

NY

International

Other US

MA

446 Teams

NY

1,427 Participants

733 Teams

2,853 Participants

2010 2011# Startups


733 startups applied to enter MassChallenge 2011, representing 24 countries and 34 states

Almost 65% increase in entrants over 2010Notes: Self-reported for “Primary Industry” and “Current Headquarters”. 27

0

20

40

60

80

100%

International

Israel

Greece

Australia

India

Canada

Russia

Kenya

South Korea

Other

Thailand

UK

Finland

Headquarters

MA

Other US

International

Other US

IL

NJ

NH

NY

CA

FL

Other

TX

CT

RI

2011 MassChallenge applicants

89international

147Other USA

733total


67% of 2011 applicants are headquartered in MA;industry breakdown varies significantly by location

0

20

40

60

80

100%

MA

Social Impact

High Tech

General

Energy & Clean Tech

Life Science/Healthcare

Other US

General

High Tech

Social Impact

Life Science/

Healthcare

Energy & Clean

Tech

NY

General

High

Tech

Social

Impact

Int'l

Social

Impact

High

Tech

General

Notes: Self-reported for “Primary Industry” and “Current Headquarters”. 28

733 MassChallenge applications by headquarters and industry


2011 Finalist Metrics

29


The 125 MassChallenge finalists for 2011 represent 6 countries and 15 states, NY prominent


0

20

40

60

80

100%

International

South Korea

Portugal

Kenya

Israel

Canada

Headquarters

International

Other US

MA

Other US

MD

SC

NJ

WA

PA

IN

CO

CA

ME

FL

GA

RI

NH

NY

2011 MassChallenge Finalists

6international

24Other USA

125 total(95 from MA)


76% of 2011 finalists are headquartered in MA;industry breakdown varies significantly by location

0

20

40

60

80

100%

MA

General

Energy & Clean Tech

Life Science/Healthcare

Social Impact

High Tech

Other

US

High Tech

Energy &

Clean Tech

Social

Impact

General

NY

General

High

Tech

Social

Impact

General

High

Tech

Life Science/

Healthcare

Int'l


125 MassChallenge finalists by headquarters and industry


MassChallenge Finalist startups are diverse on key metrics

0

25

50

75

100

125

# Female Founders

No data

2

1

0

125

# Minority Founders

No data

2

1

0

125

4

3

5

32Notes: All data self-reported via MassChallenge administered survey May 5, 2011.

42% with at least 1 female founder

41% with at least 1 minority founder

125 MassChallenge finalists by number of founders per category


2010 Metrics

33


446 teams applied to enter MassChallenge, representing 26 countries and 24 states

446 startups = world’s largest Startup Competition

0

20

40

60

80

100%

Sector

General

Social

Impact

Energy and

Clean Tech

Life Science/

Healthcare

High tech

Headquarters

International

Other US

Other NE

MA

Gender

Female

Male


446 Teams 1,427 Participants

Notes: All values self-reported based on “primary industry” and “current headquarters”. 34


Expert judges selected 111 finalists to participate in the 3 month MassChallenge accelerator program

111 startups = world’s largest Startup Accelerator

0

20

40

60

80

100%

Sector

Life Science/

Healthcare

High tech

Energy and

Clean Tech

General

Social

Impact

Headquarters

Other NE

MA

Other US

Gender

Male

Female


111 Startups

International

330 Participants

35Notes: All values self-reported based on “primary industry” and “current headquarters”.


Feedback from startups very positive – 2010 finalist satisfaction exceeds Apple customer enthusiasm

Notes: MassChallenge NPS calculated from data collected in Jan 2011 finalist surveyComparative NPS data from: http://www.netpromoter.com/np/compare.jsp

Net Promoter Score (NPS) US leaders (2010)

•USAA

81%

•Apple

78%

•Amazon

71%

•Trader Joe’s

68%

•Wegman’s

67%

0

20

40

60

80

100%

Finalists

Neutral

(7-8 )

Promoters

(9-10 )

Detractors

(0-6 )

78.3%

"How likely would you be to recommend MassChallenge to a friend?"

(10 = most likely)

Net Promoter Score = % promoters - % detractors

36

N=46


MassChallenge organized 250+ events in 2010, fostering connections and educating 5,000+ people

0

20

40

60

80

100%

Info

sessions

Office

hours

Training

255 5,085

0

2

4

6

8

10

Befo

re

Aft

er

Events Organized by MassChallenge

in 2010

How satisfied are you with your current ACCESS to each of the following? (10 most satisfied)

37

Notes: Before data from April 2010 (N=86),after data from November 2010 (N=49)


2010 finalists indicate improved access to key resources, especially to peers and funding sources

0

2

4

6

8

10

Be

fore

Aft

er

38


+16% +22%

+34% +32%

How satisfied are you with your current ACCESS to each of the following? (10 most satisfied)


2010 finalists credit MassChallenge with increasing their access, especially those that engaged actively

39

To what extent has MassChallenge improved your access to key resources? (10 being very significantly)


0

2

4

6

8

10

Did not engage

actively in

accelerator

6.4

All finalists

7.4

Engaged actively in

accelerator

8.2

~30% better improvement for engaged

teams

masschallenge 2012 untapped presentation

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masschallenge

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primary industry

startup accelerator

reduce anxiety

current access

current headquarters

reported based