MassChallenge

MassChallenge

MassChallenge occupies the 6th floor of 21 Dry Dock Avenue (Boston Design Center) in the rear of the image
Type	501(c)(3)
Website	masschallenge.org

MassChallenge is a no-equity startup accelerator. It claims to be the world's biggest and the first to support high-impact, early-stage entrepreneurs with no strings attached.^[1][2] Its objectives are to promote innovation, collaboration and commercialization, address the seed-stage investment gap, empower novice entrepreneurs and provide educational opportunities for entrepreneurs.

The nonprofit organization^[1] selects 128 startup companies annually^[3] to participate in its four-month accelerator program, which provides entrepreneurs access to expert mentors, marketing and media resources, funding opportunities and free office space in Boston. Following the four-month accelerator period, MassChallenge awards $1 million in grants to the program’s top companies.^[1] MassChallenge accepts startups from all industries and has the resources to provide startups from "any industry, anywhere in the world" with tremendous value.^[3] However, all of the startups must be "early-stage", meaning that they have received up to but no more than $500,000 of equity based funding and haven't generated more than $1 million in revenue. The MassChallenge accelerator program is designed to provide entrepreneurs with a range of strategic and tactical insights, covering everything from sales to hiring and legal to financing.

As a nonprofit, MassChallenge does not take any equity in the companies or place any restrictions on the entrepreneurs.^[1] The organization's funding comes primarily from sponsorships from large corporations including Fidelity Investments, Verizon, Oracle, AmericanAirlines and Microsoft, and from the Commonwealth of Massachusetts^[1][4]

History

Launched in April 2010, MassChallenge began in earnest in May 2009 when co-founders John Harthorne and Akhil Nigam quit their jobs as consultants at Bain & Company to pursue their idea for a startup competition. In the midst of financial crisis, the two decided that their talents would be better served by helping entrepreneurs than by advising big multinationals.^[1][5]

MassChallenge garnered early support from successful entrepreneurs, the Commonwealth of Massachusetts, and large corporations. The earliest supporters of MassChallenge included Desh Deshpande, founder of Sycamore Networks, Thomas Menino, Mayor of Boston, Greg Bialecki, the Massachusetts Secretary of Housing and Economic Development, The Blackstone Charitable Foundation, Microsoft and Joe Fallon, a local real estate developer who donated the fourteenth floor of ONE Marina Park Drive,^[1] However, the MassChallenge offices recently relocated to the 21 DryDock Avenue in Boston's Design Center. The space is 26,000 sq. ft. taking up a large portion of the 6th floor and was donated courtesy of Jamestown, a real estate investment firm.^[6]

The organization originally attracted applications from 446 startups for its first program in 2010, selecting 111 companies to join the accelerator.^[7] The number of applications grew to 733 for the 2011 accelerator^[7] and to 1,237 for the 2012 accelerator.^[8] Approximately 10% of applicants were accepted to the 2012 program.^[8]

In 2013, MassChallenge increased the number of accepted startups to 128, in tribute to Route 128,^[9] a number that was repeated in 2014 (picked from over 1700 entries).^[10]

Global Expansion

MassChallenge opened an office in Israel in 2013. The mission of MassChallenge Israel is to enable top-tier Israeli startups to access global markets by connecting them with the very best people and organizations in the Boston entrepreneurial ecosystem in order to help identify up and coming startups to participate in the program. With the help of Israeli mentors and judges, MassChallenge Israel identifies the highest-potential startups in Israel to relocate to the MassChallenge headquarters in Boston offices for the summer and participate in the 4 month accelerator program. These startups will be able to return to Israel after the MassChallenge accelerator with new sales channels, investors, mentors, and growth that wouldn't otherwise be feasible.

MassChallenge launched MassChallenge UK, its second full accelerator program, in London in February 2015.^[11] MassChallenge UK will run a nearly identical four-month accelerator program based out of London's historic Tobacco Dock that will engage hundreds of startups, expert mentors, investors, students, and business leaders from across the UK and beyond. In its first year, MassChallenge UK plans to incubate around 80 startups and give £500,000 in cash prizes with no equity taken at the end of the competition during the awards ceremony planned for October 22.^[11]

In June 2014, MassChallenge announced a goal with the Clinton Global Initiative to expand into ten cities on all populated continents by 2019.^[12] The next sites for accelerator programs are unknown, but MassChallenge is active in many countries already through its smaller "bootcamp" style Bridge Programs that serve to intensively train high potential entrepreneurs across the globe. Bridge Programs have been conducted with entrepreneurs in Colombia, Mexico, Russia, Switzerland, and South Korea.

Structure

Startup Accelerator

MassChallenge’s startup accelerator program connects entrepreneurs with resources to help them succeed. The program lasts four months, July through October, and takes place in the MassChallenge offices in Boston and in London.^[2][13]

MassChallenge entrepreneurs typically build a small team of 2-4 mentors and work with those experts throughout the accelerator. Every match between entrepreneur and mentor is mutual. MassChallenge never forces a relationship, but does help entrepreneurs and mentors make connections. The organization matches entrepreneurs with expert mentors, who are a mix of senior executives, lawyers, marketing consultants and successful entrepreneurs. There are over 300 mentors in the MassChallenge network.^[14]

MassChallenge organizes hundreds of events and training sessions during the four month program,^[2][13] including a one-week “Boot Camp.”^[15] Events range from large lectures and networking events to small workshops.^[13]

During the four months, the entrepreneurs work out of MassChallenge's offices located in South Boston's "Innovation District".^[16]

Startup Competition

MassChallenge uses a competition framework to provide resources to top startups. Two rounds of judging determine the class of 100+ “finalists,” which are invited to participate in the four-month accelerator program. Several more rounds of judging determine cash winners. MassChallenge judges award a total of $1 million in grants to 10-20 startups in amounts of either $100,000 or $50,000.^[2] The startups are judged on “impact, feasibility, and execution.” MassChallenge judges have included Vertex Pharmaceuticals founder Josh Boger, famous tech entrepreneur Desh Deshpande, and Boston Celtics owner Wyc Grousbeck.^[8]

Entrants must be in the early stages of their business to be eligible. MassChallenge defines this as no more than “$500K of investment” and “$1M in annual revenue.” ^[17] MassChallenge does not take any equity in its winners or place any restrictions on any of the entrepreneurs in exchange for the cash prizes.^[1] Unlike some other startup accelerators, MassChallenge does not provide cash upfront. It provides grants to winners after the program.^[2]

All finalists have access to multiple other prizes and in-kind deals throughout the accelerator program. Other prizes include; The Center for the Advancement of Science in Space (CASIS) provides an additional $600,000 prize and the opportunity to use the International Space Station National Laboratory as the ultimate research or technology development platform, Perkins School for the Blind offers an additional $25,000 to encourage participants in MassChallenge to develop new, low- and high-technology devices that could make a significant impact on the quality of life for people with disabilities. The John W. Henry Family Foundation provides additional grants to support the startup or startups in the 2013 MassChallenge accelerator with the most compelling social impact potential. Microsoft’s New England Research & Development Center is supporting a $50,000 prize for the startup or startups that solve civic challenges through technology. MassChallenge partners provide startups with a massive range of in-kind deals, collectively valued at over $10 million.These deals include legal advice, marketing & media support, talent & hiring partners, and special deals in software, hosting, manufacturing, airfare, shipping and much more.

Impact

As of May 2015, MassChallenge claimed that 617 alumni had collectively raised over $943 million in outside funding, generated $495 million in revenue and created 5,105 jobs.^[18]

Notable alumni

2010

• Ksplice, an open-source extension of the Linux kernel that allows security patches to be applied to a running kernel without the need for reboots^[19]
• RelayRides, a peer-to-peer carsharing marketplace^[20]
• JoyTunes, a music app producer^[21]
• Sproxil, a producer of app-based anticounterfeiting measures^[22]

2011

• Drync, a wine mobile app for iOS platforms^[23]
• Her Campus, an online newsmagazine for college women^[24]

2012

• Global Research Innovation & Technology, manufacturer of the Leveraged Freedom Chair^[25]
• LiquiGlide, a plant-based liquid-impregnated surface coating^[26]
• RallyPoint, a professional network for US military members^[27]
• Ministry of Supply, a business wear men's fashion brand^[28]

2013

• Moneythink, a non-profit organization that places college volunteers in high school classrooms to teach courses in financial literacy and entrepreneurship^[29]

References

External links

Wikimedia Commons has media related to MassChallenge.

• MassChallenge.org