In venture capital, there is a major focus on de-risking a company to the point where an investor feels comfortable putting money in.
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In venture capital, there is a major focus on de-risking a company to the point where an investor feels comfortable putting money in. This process usually involves developing a prototype, building an experienced team, generating data to support claims, and outlining a go-to-market strategy. Applying this model to Worcester, it is clear Worcester has been de-risked as a location for startups.Â
Worcester has a phenomenal prototype for success. Worcester has access to the infrastructure required for startup companies to succeed. Our colleges and universities offer access to equipment, innovation, and a constant flow of new talent. Worcester has an educated workforce of talent to fuel growth. Video conferencing has broken down barriers and brought Worcester closer than ever to our major capital centers in Boston and New York.
Investors place bets on teams, not technologies, and Worcester has a great team. Worcester has more than 20 startup-focused organizations. The city has a wide array of incubators, mentoring programs, and support infrastructure to launch a company. Those support agencies are reaching new heights. The Venture Forum launched a mentoring program, and Massachusetts Biomedical Initiatives has created two new business support programs to help entrepreneurs succeed. Worcester is said to possess the collaborative gene and is a place where people work together to get things done.
The model has data. Companies are thriving in the city. Nearly 30 years ago, AbbVie (then BASF) placed a bet on Worcester. Since then, Abbvie’s Worcester team has developed Humira, the world’s largest selling biologic, and brought RinVoq to the market. MustangBio chose Worcester and has grown from two employees to more than 50 in the city on a mission to cure cancer. Biomere now employs more than 100 in the city with plans to grow after an acquisition by JOINN Biologics of California. Last year, WuXi Biologics broke ground on a $60-million investment to employ more than 150 here in the city.
At MBI, we opened our new facility in August. The site doubled our capacity to support early-stage companies and has already surpassed 70% occupancy with extremely talented companies. In November, MBI company iVexSol secured a $13-million Series A financing round to fuel its growth. Leveragen, also at MBI, secured a $3-million seed round and has grown its team from one to seven employees. Even the Worcester Red Sox chose Worcester and plan to play ball at a new stadium in the spring.
Worcester has a go-to-market strategy for success. By continuing to focus on creating the space and resources companies need to succeed, Worcester is helping companies launch, scale, network, and access capital.
For entrepreneurs looking for an environment to launch their next venture, Worcester is de-risked.
Jon Weaver is president & CEO of Worcester incubator Massachusetts Biomedical Initiatives.
