What is MassVentures typical investment size?
MassVentures first investment in a company is typically a $250,000 -$500,000 investment in a Series A round. MassVentures will maintain sufficient reserves to be able to fund its share of follow-on financings. Occasionally MassVentures will make seed investments. This investment is typically up to $100,000 in the form of a convertible note.
At what stage of a company’s life will MassVentures invest?
MassVentures typically invests in a company that is pre-revenue but has developed software or a prototype product.
What kinds of investment vehicles does MassVentures use?
MassVentures uses traditional venture capital instruments such as preferred stock or notes that convert into common or preferred stock and may include warrants.
Does MassVentures lead investment rounds?
What industries does MassVentures invest in?
MassVentures will invest in technology-driven companies across a broad range of industries. In recent years, MassVentures has invested in green technology, healthcare IT, industrial automation and robotics, internet and digital media, and mobile. Because the Commonwealth of Massachusetts has a clean energy center and a life science center, it will not invest in those two sectors or medical devices.
How much prior capital does a company need to have raised?
There is no minimum amount of capital that the company needs to have raised. However, MassVentures always looks for co-investors to participate in the syndicate and prefers to invest less than 50% of the money raised.
Does a company need to have a complete management team?
It is not reasonable to expect seed and early-stage companies to have a complete management team. For example, a Series A company does not need a full-time CFO. The company needs a management team that brings relevant domain expertise, a strong marketing focus, and the skill set in developing and growing the required technologies that the company will depend upon.
What materials do I need to provide MassVentures for them to assess its interest in a possible investment?
MassVentures requires a pitch deck and/or an executive summary. A submission form can be found here.
Will MassVentures invest into LLCs or partnerships?
No, not as a general rule. MassVentures always seeks to leverage its capital along with other investors, many of whom explicitly avoid investing in LLCs or partnerships.
Does MassVentures require board participation or observation rights?
How long is the typical MassVentures diligence process?
As long as it takes to get comfortable with the technology, the market opportunity, and the management team. If this can be conveyed and verified cleanly and quickly, the due diligence process can take as little as two months. In many cases, due diligence raises further questions and uncertainties that need to be resolved before MassVentures is prepared to make an investment decision.
How does MassVentures add value to early-stage companies?
MassVentures has worked with over 130 established companies in Massachusetts. Our team is experienced with the growing pains and challenges that startup companies face and have a broad network of support to help young companies get established. MassVentures also works hard to help its portfolio companies access its subsequent rounds of capital and investments.
Does MassVentures have a geographic requirement or limitation?
MassVentures investments must have and maintain a significant portion of their operations in Massachusetts.
Does MassVentures sign NDAs as part of the investment process?
No, MassVentures will not sign an NDA. We advise applicants not to disclose anything proprietary or confidential. Under state statute, confidential information submitted by portfolio companies to MassVentures is not subject to freedom of information requests and remain confidential.