Diving into the Commonwealth's Most Promising Startups

Few startup markets are as competitive and thriving as Massachusetts and, more specifically, Boston. Ranging from crypto goldmines to plant-based meat alternatives, the talent is far-ranging, making the Bay State one of the hottest markets in the country. Despite a cut-throat market, these successful startups are making it work in the Commonwealth’s thriving startup scene.

Motif

Perfectly coinciding with the rise of alternative meat options, Motif has made a name for itself in the plant-based food space. While the company was first created with the goal of producing ingredients that secondary companies could use to make their own plant-based products, Motif soon came to develop its own line of food that was met with rave reviews across the board. Alternatives include beef, pork, and chicken, all of which could be sold directly to third-party distributors interested in expanding their plant-based line. Shifting their model from an ingredient supply business to selling the foods directly has not been a breeze for Motif -- but a process that is nevertheless proving worthwhile.

https://www.bostonglobe.com/2022/05/18/business/boston-startup-motif-start-selling-plant-based-meat-alternatives/

Kintent

One group that recently earned major funding is Kintent, which helps companies meet compliance standards. Receiving funding from both TolaCapital and Openview and led by a powerful team aiming to close the affordability and thoroughness gap in compliant software companies currently on the market, Kintent is already making waves. In a nutshell, Kintent is helping to make sure all SaaS companies are up to code and working with strong security to ensure the safety of all parties involved, including meeting standards like HIPAA. The increased funding is set to go toward continuing to expand and helping to round out the expansion team, including sales agents.

https://techcrunch.com/2022/05/03/kintent-aims-to-automate-away-enterprise-compliance-tasks/

Flipside Crypto

Crypto has taken the world by storm in recent years, both positively and negatively, with harsh crashes and falling values lately. One startup in the cryptocurrency space, Flipside Crypto, is aiming to use blockchain tech to grow with the market and one day rival brick and mortar institutions that have been the long-standing norm. To help do this, the company has recently received a $50 million investment to be used for expansion and continuing to source crypto’s next biggest thing in decentralized finance.

https://www.bostonglobe.com/2022/04/19/business/boston-startup-gets-50-million-uncover-most-promising-crypto-projects/

Phoenix Tailings

Focused on mining and increased output that makes economic and sustainable sense, Phoenix Tailings is bravely challenging the most established mining companies out there. One of the primary approaches is taking the traditional mining waste, called tailing ponds, and using this waste to extract the remaining important metals that primary companies typically cast aside. Some of these refined metals are valuable enough to be used in phones, cars, and the aerospace industry, yet so many companies skip over the opportunity. Based in Woburn, Phoenix Tailings is set to completely disrupt the market in the most sustainable and economically sound approach.

https://www.bostonglobe.com/2022/05/12/business/woburn-startup-aims-break-chinas-grip-rare-metals/ 

Massachusetts Tops Innovative State Ranking… Again

For the second year in a row, Massachusetts has been named the most innovative state in America by the U.S. Chamber of Commerce Foundation's "Enterprising States" study.

The Bay State has long been considered a bastion of innovation and entrepreneurialism, and this ranking is further evidence of that. Massachusetts has consistently ranked near the top of various other measures of innovation, including the Boston Consulting Group's "Innovation Premium" index and Bloomberg's "Innovation Index."

What makes Massachusetts so innovative? There are a number of factors, but one key reason is the state's highly educated workforce. Nearly half of all adults in Massachusetts have a college degree, the highest percentage in the nation.

There are a few reasons for the ranking, including different weighted measures. Here are a few where Massachusetts ranked the highest, according to WalletHub:

·      1st (Tied) Highest R & D Spending per Capita

·      1st (Tied) Highest Venture-Capital Funding per Capita

·      3rd Best Eighth Grade Math & Science Performance

·      4th (Tied) Highest Share of STEM Professionals

·      5th Highest Share of Science & Engineering Graduates Aged 25+

Why Does State Innovation Matter?

The concept of introducing new ideas, technology, and ways to conduct business is a hallmark of a solid future for any state’s economy. Innovation is crucial at every level of an enterprise, including startups, small businesses, and major corporations; it helps move markets, concentrate market share within a region, and attract talent to continue the cycle of positive growth.

When it comes to the US as a whole, innovation is crucial for economic expansion. Disruptive startups and changing business models are what keep the country ahead of the curve, with the highest GDP, and the third overall ranking in the Global Innovation Index. The ranking of innovative states attempts to show which individual states and regions are contributing the most to the success of the United States in these international rankings.

The study was conducted by WalletHub and factored in multiple topics to produce the final ranking. Questions researchers included where based in broad topics around human capital and the innovation environment for each state.

A Breakdown of Massachusetts’ Standing

So what else contributes to the Commonwealth’s high innovative ranking year to year? In short, a consistently strong economy.

In the last quarter of 2020, Massachusetts increased its GDP by nearly 8%. Prior to that, the state GDP had increased by 33.1%. Additionally, despite the fact that the unemployment rate is slightly higher than the national average at 4.3%, it only grew 1.3% over a single year period, arguably due in large part to the pandemic. The overall labor force has also risen in the last four years by roughly 121,400 residents.

Another important innovation standard? Startups. Massachusetts is doing exceptionally well in this category with billions invested in innovative research ideas and future companies. This investment culture and the potential opportunity it will bring for future industries and jobs, has made the Boston area among the most likely to be the next Silicon Valley.

In addition to a strong economy, the state of Massachusetts is also home to top-tier colleges and universities. With such an educated workforce, it’s no wonder that the Commonwealth has been able to produce so many successful startups.

And Finally

While it’s good news that Massachusetts is once again the most innovative state in America, there’s always room for improvement. The state can continue to invest in its workforce by providing more opportunities for training and education. Additionally, policymakers could focus on creating an even more business-friendly environment to attract more startups and entrepreneurs to the Commonwealth.

By continuing to invest in its workforce and business environment, Massachusetts is poised to maintain its ranking as the most innovative state in America for years to come.

The Boston Startup Ecosystem Combats Climate Change

The threat of climate change is more real than ever. With increased storm frequency and severity, rising oceans, salinity, and temperatures, the state of our climate is increasingly frightening. Luckily, a few bold companies right here in Massachusetts are working to combat climate change so humans can carry-on with less environmental impact, but more awareness of the earth’s conditions.

The Boston startup scene is no stranger to working hard in order to make a difference, even in the case of climate change. Nearly a decade ago, there was a major uptick in energy companies that weaved through the startup community trying to create cleaner power alternatives back when climate data showed a smaller risk than it does now. However a great many of those businesses didn’t get farther than initial concepting. Thinking too big and doing whatever it took to reach their goals made them vulnerable and ultimately their efforts suffered. A123 Systems, Bedford biofuels, Evergreen Solar and other successful local companies left a negative perspective of what local startups have to offer, but things are shifting now.

In this new decade, a new wave of startups and innovators are ready to create technology that combats climate change one again, hopeful that their efforts will stick for good this time. With a worsening planetary environment, the stakes are higher and the need for innovative, effective solutions are much higher.

The Boston Globe chatted with a representative from the Bill Gates umbrella company Breakthrough Energy Ventures, who says that the climate-soaked startup market is unlike anything he’s seen before. Sources include institutional investors, family foundation, philanthropies, and hedge funds. What are they looking for? Ambition, innovation, and strength, to name a few. The perfect combination of boldness and insight are what make startups stick out right now – the ability to dream big, but also to back up those aspirations with data and pathways to success.

Climate Change Startup Spotlight

Commonwealth Fusion Systems

This company is taking on the heavy feat of making nuclear fusion a reality rather than a crazy science experiment. Just in this last year, Commonwealth has already produced a viable figure for nuclear fusion tech that safely and effectively fuels power grids. They’re so confident, in fact, that they’re aiming for power centers to be in full effect in less than a decade. The company’s innovative power choice reduces emissions and therefore, does not contribute to the warming. To date, Commonwealth has acquired over $250 million in funding for their projects.

Form Energy

When it comes down to it, the place we pull energy from to fuel everything we need has a direct impact on climate change. Form Energy has developed an effective, affordable battery option that limits emissions and climate change effects, thanks to a little help from iron. When a location can’t benefit from hydroelectricity or wind turbines, these batteries make it possible to recharge with powerful batteries rather than waste precious resources.

These two companies are only the tip of the iceberg for clean energy solutions constantly spilling onto the market. More specifically, these efforts marks the distinct drive that Massachusetts’ start up community possesses as it continues to produce one-of-a-kind combatants for the climate crises. As more funding pours into these projects, making dreams and hopes a near-certain reality, mitigating climate change on a local, country, and world-wide level does not seem too far away.

Massachusetts Startups Seeing Major VC Success

Venture capital investment has seen an uptick as business leaders still try to grasp where America is headed next. With significant changes in the economy in the last year, many VCs have adapted their spending strategies and, as a result, more funding than ever has been funneled into startups promising innovation and brighter, better futures.

As for Massachusetts? The Commonwealth ranks third in the entire country for venture capital investment, falling behind only New York and California. 

This year, Bay State startups have received more funding in the past six months than they have in the entire year of 2020 - totaling an incredible $17.4 billion to a core group of Massachusetts-based startups.

While COVID-19 negatively impacted many businesses, the overwhelming characteristics for companies who score funding is either a thriving business despite COVID-19, or a direct capitalization on the pandemic’s ill-effects. That is to say, the services they offer were more in demand during the pandemic than they were before, or their value and success have scaled so much that it’s led to a sharp increase in VC interest. Companies garnering funding include biotech, cybersecurity, and e-commerce institutions,  earning Massachusetts the well-deserved number three spot overall in the country for VC investment. 

Unsurprisingly, the healthcare industry has boomed during the pandemic, which explains the increase. And successful biotech companies, such as Adagio Therapeutics and Affinivax, have been just two of the more recent companies that benefited from the increase in VC funding.  With the race toward the COVID vaccine and the demand for adaptable, high-tech healthcare systems and technology, VCs have rapidly shifted their attention to startups like these. As a result, it’s more important than ever that these enterprises continue their research and development momentum to ensure that they can keep up with demand.

Cybersecurity firms Snyk and Aura also received a hefty amount of funding. The world has been turning increasingly virtual this last decade but nothing quite  propelled the space like the onset of COVID.  Consumers turned online to conduct business, shop, and socialize - leading to a concurrent increase in demand for quality cybersecurity systems. Similarly, Boston-based high-tech company, Circle, raised $440 million in May alone, cementing its position as one of the top cryptocurrency brands to take over the market. 

While the investment in cybersecurity and biotech is impressive, none fared as well as online sales and marketplaces. Perch, a Massachusetts-based e-commerce brand, landed $775 million during the first six months of 2021. Deemed the largest 2021 deal in Bay State, Perch’s substantial funding is entirely on par with a post-pandemic world leaning into online sales.

Each of these companies puts the Commonwealth on a hopeful path toward a recuperating, post-pandemic economy. We can expect the trend to continue through the second half of 2021 with hot spots including green tech, software, cybersecurity, biotech, and e-commerce spheres, all promising futures for investment groups. 

Massachusetts is the only New England state to rank in the top ten venture capital-backed states. Though Connecticut sits 14th with a total of $1.4 billion in funding raised, Massachusetts far outweighs its neighbor.