{"id":1768,"date":"2017-06-23T16:30:45","date_gmt":"2017-06-23T20:30:45","guid":{"rendered":"http:\/\/mcnair.bakerinstitute.org\/blog\/?p=1768"},"modified":"2020-10-15T11:56:03","modified_gmt":"2020-10-15T15:56:03","slug":"masschallenge","status":"publish","type":"post","link":"https:\/\/www.edegan.com\/articles\/masschallenge\/","title":{"rendered":"MassChallenge: Connecting Startups and Big Business"},"content":{"rendered":"<p>Corporations and startups are moving toward early stage interactions. <a href=\"https:\/\/masschallenge.org\/\">MassChallenge<\/a>, a highly successful nonprofit accelerator, has been connecting corporations and\u00a0startups since its 2010 \u00a0<a href=\"https:\/\/thenextweb.com\/insider\/2011\/09\/24\/masschallenge-why-the-worlds-largest-startup-incubator-is-also-a-non-profit\/#.tnw_pApDsCjZ\">launch<\/a>\u00a0in Boston. MC has\u00a0several US and international locations,\u00a0which\u00a0accelerated 372 startups in 2016.<\/p>\n<p>MC delivers positive <a href=\"https:\/\/masschallenge.org\/press-release\/masschallenge-releases-2016-impact-report\">results <\/a>and\u00a0has been listed among the Best Startup Accelerators by the <a href=\"http:\/\/seedrankings.com\/#rankings\">Seed Accelerator Rankings Project<\/a>, led by Baker Institute Rice faculty scholar <a href=\"http:\/\/yael-hochberg.com\/\">Yael Hochberg<\/a>. \u00a0There are over 1,000 MC alumni, who have collectively raised more than\u00a0$1.8B in outside funding, generated $700M in revenue and created over 60,000 jobs. According to a 2016 MIT study, <a href=\"https:\/\/masschallenge.org\/press-room\">MC startups<\/a> are 2.5\u00a0times\u00a0more likely than non-MC startups to hire at least 15 employees and three times more likely to raise $500,000 in funding.<\/p>\n<p>With seven years of history, notable MC alumni includes <a href=\"http:\/\/www.ginkgobioworks.com\/\">Ginkgo Bioworks<\/a>, which designs custom microbes to produce chemicals, ingredients and industrial enzymes. As a startup, Gingko Bioworks\u00a0raised $154M in funding\u00a0and\u00a0signed a deal for 700 million base pairs of designed DNA \u2014 the largest such agreement ever made \u2014 with <a href=\"https:\/\/www.twistbioscience.com\/\">Twist Bioscience<\/a>. Other remarkable graduates of the program include <a href=\"http:\/\/www.ksplice.com\/\">Ksplice<\/a>, <a href=\"https:\/\/turo.com\/\">Turo<\/a>, <a href=\"http:\/\/acumen.org\/investment\/sproxil\/\">Sproxil<\/a> and <a href=\"https:\/\/liquiglide.com\/\">LiquiGlide<\/a>.<\/p>\n<h3>An Attractive Alternative for Startups<\/h3>\n<p>MC is similar to other startup institutions such as Techstars and Y-Combinator. However, the nonprofit differentiates itself by not taking equity. Entrants to the accelerator must be early stage startups, defined as companies with no more than $500K of investment and $1M in annual revenue. As part of the four-month program, selected startups receive mentoring, co-working space, access to a network of corporate partners, tailored workshops and the chance to win a portion of $2M in zero-equity funding. Additional prizes are provided by partners such as <a href=\"http:\/\/www.iss-casis.org\/\">The Center for the Advancement of Science in Space (CASIS)<\/a>\u00a0and <a href=\"http:\/\/microsoftnewengland.com\/\">Microsoft\u2019s New England Research and\u00a0Development Center<\/a>.<\/p>\n<p>For entrepreneurs in regions with mature ecosystems like\u00a0Silicon Valley and Boston,\u00a0MC is one option among an array of accelerators and informal networks. This \u00a0density of resources is called\u00a0\u00a0agglomeration, a\u00a0geographic concentration of interconnected entities increases interactions and the productivity.\u00a0The MIT\u00a0<a href=\"http:\/\/danielfehder.com\/research2\/\">study<\/a> suggests MC acts as a complement to the prior advantages of startups in established ecosystems by providing key resources and access to <a href=\"https:\/\/www.hks.harvard.edu\/programs\/saguaro\/about-social-capital\">social capital <\/a>\u00a0and also\u00a0found evidence that startups founded in regions with higher access to early stage investors had on average higher quality ideas, but that their chances of success were not higher conditional on the quality of their idea.<\/p>\n<p>For startups in nascent ecosystems the resources provided by MC can become the only option to pitch their ideas to investors and advance their company at no cost other than the time invested on the program. Of equal value is the endorsement received as a MC graduate inferring the quality of the startup venture.<\/p>\n<h3>A Model Built on Strategic Partnerships<\/h3>\n<p>As a nonprofit, MC depends on the support of a network of public, private and philanthropic <a href=\"https:\/\/masschallenge.org\/partners\">partners<\/a>, with the vast majority of their funding coming\u00a0from corporations.\u00a0Governments and philanthropic foundations fund MC with the goal to foster regional economic growth.\u00a0Founders <a href=\"https:\/\/www.weforum.org\/people\/john-harthorne\/\">John Harthorne<\/a> and <a href=\"https:\/\/www.startupinstitute.com\/our-advisors\/akhil-nigam\/\">Akhil Nigam<\/a>, former consultants at <a href=\"http:\/\/www.bain.com\/\">Bain &amp; Company<\/a>, garnered early support from the <a href=\"http:\/\/www.mass.gov\/portal\/\">Commonwealth of Massachusetts<\/a>, successful entrepreneurs and large corporations such as <a href=\"https:\/\/www.blackstone.com\/\">Blackstone<\/a>, <a href=\"https:\/\/www.microsoft.com\/en-us\/\">Microsoft<\/a>\u00a0and the nonprofit <a href=\"http:\/\/www.kauffman.org\/\">Kauffman Foundation<\/a>.<\/p>\n<p>MC could have faced financial challenges by providing accelerator programs at no cost and with no equity commitment. However, MC was able to become a bridge between large companies\u2019 need for innovation and startups\u2019 need for capital.\u00a0Large companies have the scale of resources, customer information and market experience, but may lag in innovation. Startups, on the other hand, lack the resources but innovate with sometimes disruptive and successful ventures, frequently taking incumbents by surprise (<a href=\"https:\/\/www.nytimes.com\/2016\/07\/24\/travel\/airbnb-hotels.html\">Airbnb<\/a>, <a href=\"http:\/\/www.businessinsider.com\/more-proof-that-uber-is-killing-the-taxi-industry-2016-1\">Uber<\/a>).<\/p>\n<p>MC serves as a channel between startups and established companies to meet the need for fast-paced innovation. Companies like <a href=\"http:\/\/www.buhlergroup.com\/europe\/en\/about-buehler\/media\/media-releases\/media-releases-details-18615.htm#.WUf3VFXyuUk\">B\u00fchler<\/a> and <a href=\"https:\/\/iotbusinessnews.com\/2016\/03\/30\/89562-ptc-sponsors-startup-accelerator-masschallenge\/\">PTC<\/a>\u00a0partner with MC to source high-potential startups for the development of advanced technology. Companies can also source tailored programs or tracks for specific needs.<\/p>\n<p>A <a href=\"https:\/\/cdn2.hubspot.net\/hubfs\/1955252\/SCC_2016\/Startup_Corporate_Collab_2016_Report.pdf\">study<\/a> done jointly by MC and innovation firm Imaginatik looked at how startups and corporations interact in new collaborative ways. The research team surveyed 112 corporations and 233 startups from various industries. 82\u00a0percent\u00a0of the corporations considered startup interactions important, and 23% stated that these interactions are \u201c<a href=\"https:\/\/www.forbes.com\/sites\/davidprosser\/2016\/07\/24\/five-key-lessons-for-start-ups-seeking-corporate-collaborations\/#7018d50b6466\">mission critical.<\/a>\u201d Startups have a high interest in working with corporations with 99% stating it is important for them to interact with potential corporate customers, marketing channels and strategic partners.<\/p>\n<h3>Expansion<\/h3>\n<figure id=\"attachment_1792\" aria-describedby=\"caption-attachment-1792\" style=\"width: 400px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1792\" src=\"http:\/\/mcnair.bakerinstitute.org\/blog\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left-400x300.jpg\" alt=\"\" width=\"400\" height=\"300\" srcset=\"https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left-400x300.jpg 400w, https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left-200x150.jpg 200w, https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left-1024x768.jpg 1024w, https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left-135x100.jpg 135w, https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left.jpg 1600w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><figcaption id=\"caption-attachment-1792\" class=\"wp-caption-text\">MassChallenge was located at One Marina Park Drive until 2014.<\/figcaption><\/figure>\n<p>MC communicates its impact and vision to donors by demonstrating the cost-effectiveness of alliances between startups and corporations. A solid accelerator program, global vision, robust network and a sustainable funding strategy have set up MC\u00a0for success. As stated in the\u00a0<a href=\"http:\/\/boston.masschallenge.org\/sites\/default\/files\/2016_MC_Impact%20Report_dig_final.pdf\">MC Impact Report 2016<\/a>, the accelerator is committed to running 12 locations annually by 2020, including at least one on each populated continent.<\/p>\n<p>Before\u00a0establishing an MC accelerator, the\u00a0metropolitan area is evaluated for the quality of its\u00a0research universities, urban setting, level of entrepreneurship opportunity and investment capability. As government and private stakeholders partner, a sense of shared ownership becomes crucial to consolidating efforts. This engagement guarantees that the resulting ecosystems are seen as a shared legacy.<\/p>\n<p>The next MC sites are yet to be announced. Currently in five locations with\u00a0global impact, MC&#8217;s\u00a02020 vision is on a\u00a0path to become a tangible reality.<\/p>\n<p><em>The author and editor would like to thank Tay Jacobe for assistance with researching and\u00a0drafting\u00a0this post.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Corporations and startups are moving toward early stage interactions. MassChallenge, a highly successful nonprofit accelerator, has been connecting corporations and\u00a0startups since its 2010 \u00a0launch\u00a0in Boston. MC has\u00a0several US and international locations,\u00a0which\u00a0accelerated 372 startups in 2016. MC delivers positive results and\u00a0has been listed among the Best Startup Accelerators by the Seed Accelerator Rankings Project, led by&hellip;<\/p>\n","protected":false},"author":22,"featured_media":1792,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[306,422],"tags":[280,309,319,73,105,221,118,104,26,317,123,37,312,140,311,99,310,18,31,314,308,181,222,318,315],"class_list":["post-1768","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accelerators","category-mcnair","tag-accelerators","tag-agglomeration","tag-akhil-nigam","tag-early-stage","tag-economic-growth","tag-ecosystem","tag-entrepreneurial-ecosystem","tag-entrepreneurs","tag-entrepreneurship","tag-gingko-bioworks","tag-government","tag-innovation","tag-john-harthorne","tag-kauffman-foundation","tag-masschallenge","tag-microsoft","tag-nonprofit","tag-policy","tag-research","tag-seed-accelerator-rankings-project","tag-social-capital","tag-startup","tag-technology","tag-twist-bioscience","tag-yael-hochberg"],"featured_image_urls_v2":{"full":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left.jpg",1600,1200,false],"thumbnail":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left-200x150.jpg",200,150,true],"medium":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left-400x300.jpg",400,300,true],"medium_large":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left.jpg",1600,1200,false],"large":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left-1024x768.jpg",800,600,true],"1536x1536":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left.jpg",1536,1152,false],"2048x2048":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left.jpg",1600,1200,false],"post-thumbnail":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left.jpg",1200,900,false],"twentytwenty-fullscreen":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left.jpg",1600,1200,false],"yarpp-thumbnail":["https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left.jpg",120,90,false]},"post_excerpt_stackable_v2":"<p>Corporations and startups are moving toward early stage interactions. MassChallenge, a highly successful nonprofit accelerator, has been connecting corporations and\u00a0startups since its 2010 \u00a0launch\u00a0in Boston. MC has\u00a0several US and international locations,\u00a0which\u00a0accelerated 372 startups in 2016. MC delivers positive results and\u00a0has been listed among the Best Startup Accelerators by the Seed Accelerator Rankings Project, led by Baker Institute Rice faculty scholar Yael Hochberg. \u00a0There are over 1,000 MC alumni, who have collectively raised more than\u00a0$1.8B in outside funding, generated $700M in revenue and created over 60,000 jobs. According to a 2016 MIT study, MC startups are 2.5\u00a0times\u00a0more likely than non-MC startups&hellip;<\/p>\n","category_list_v2":"<a href=\"https:\/\/www.edegan.com\/articles\/category\/startup-ecosystems\/accelerators\/\" rel=\"category tag\">Accelerators<\/a>, <a href=\"https:\/\/www.edegan.com\/articles\/category\/mcnair\/\" rel=\"category tag\">McNair Center<\/a>","author_info_v2":{"name":"Diana Carranza","url":"https:\/\/www.edegan.com\/articles\/author\/diana\/"},"comments_num_v2":"0 comments","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MassChallenge: Connecting Startups and Big Business - Ed Egan<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.edegan.com\/articles\/masschallenge\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MassChallenge: Connecting Startups and Big Business - Ed Egan\" \/>\n<meta property=\"og:description\" content=\"Corporations and startups are moving toward early stage interactions. MassChallenge, a highly successful nonprofit accelerator, has been connecting corporations and\u00a0startups since its 2010 \u00a0launch\u00a0in Boston. MC has\u00a0several US and international locations,\u00a0which\u00a0accelerated 372 startups in 2016. MC delivers positive results and\u00a0has been listed among the Best Startup Accelerators by the Seed Accelerator Rankings Project, led by&hellip;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.edegan.com\/articles\/masschallenge\/\" \/>\n<meta property=\"og:site_name\" content=\"Ed Egan\" \/>\n<meta property=\"article:published_time\" content=\"2017-06-23T20:30:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-10-15T15:56:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"1200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Diana Carranza\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@EdwardJEgan\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Diana Carranza\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.edegan.com\/articles\/masschallenge\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.edegan.com\/articles\/masschallenge\/\"},\"author\":{\"name\":\"Diana Carranza\",\"@id\":\"https:\/\/www.edegan.com\/articles\/#\/schema\/person\/44f6c87b17ea0add0973d12eeb0e1ace\"},\"headline\":\"MassChallenge: Connecting Startups and Big Business\",\"datePublished\":\"2017-06-23T20:30:45+00:00\",\"dateModified\":\"2020-10-15T15:56:03+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.edegan.com\/articles\/masschallenge\/\"},\"wordCount\":913,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.edegan.com\/articles\/#\/schema\/person\/af68f139b393ff70bbb343b6300b6800\"},\"image\":{\"@id\":\"https:\/\/www.edegan.com\/articles\/masschallenge\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.edegan.com\/articles\/wp-content\/uploads\/2017\/06\/ONE_Marina_Park_Drive_building_left.jpg\",\"keywords\":[\"Accelerators\",\"Agglomeration\",\"Akhil Nigam\",\"Early Stage\",\"Economic Growth\",\"Ecosystem\",\"Entrepreneurial Ecosystem\",\"Entrepreneurs\",\"Entrepreneurship\",\"Gingko Bioworks\",\"Government\",\"Innovation\",\"John Harthorne\",\"Kauffman Foundation\",\"MassChallenge\",\"Microsoft\",\"Nonprofit\",\"Policy\",\"Research\",\"Seed Accelerator Rankings Project\",\"Social Capital\",\"Startup\",\"Technology\",\"Twist Bioscience\",\"Yael Hochberg\"],\"articleSection\":[\"Accelerators\",\"McNair Center\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.edegan.com\/articles\/masschallenge\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.edegan.com\/articles\/masschallenge\/\",\"url\":\"https:\/\/www.edegan.com\/articles\/masschallenge\/\",\"name\":\"MassChallenge: Connecting Startups and Big Business - 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