United States
Boston
“Boston is the perfect intersection of old tech and new tech; of keeping with the status quo and reinventing the system. This is what makes the Boston startup ecosystem not only a catalyst for building companies but a force in the international market.”
Highlights
Boston’s vibrant ecosystem consistently ranks among the global leaders in the GSER rankings, a result of its strong pool of talent, funding, and experience. In October, President Biden designated Massachusetts as a technology hub, granting $500 million to the state to stimulate investments in new technologies such as artificial intelligence, quantum computing, and biotech.
Boston-area companies raised $873.4 million in funding in December 2023. Agtech startup Indigo raised $1.4 billion in funding over 11 rounds, including a $250 million round in September 2023. Renewable energy developer Longroad Energy raised $600 million in November 2023, bringing their total funding to $1.1 billion. Sustainable AI startup Lightmatter raised $155 million in November 2023.
Boston was named the fourth best city to launch a startup, citing its business environment as a key factor, and the Boston ecosystem is known for its friendliness to diverse founders. In October 2023, Boston announced initiatives to connect minority- and women-owned businesses with technical support and funding. In fiscal 2023, Boston awarded $151 million, or 14% of its contracts, to certified minority- and women-owned businesses, a 6% increase over 2022. Female and Latinx-founded VC firm Mendoza Ventures invests in early growth-stage startups with diverse teams.
TECHSPO Boston 2024 took place in June. Venture Capital World Summit was held in Boston in May, and Women in Tech Boston took place in October. Boston Startup Week 2023 took place in September.
Ecosystem by the Numbers
Sub-Sector Strengths
Life Sciences
Massachusetts-based biopharma companies raised a total of $7.67 billion in 2023, with nearly 2,000 drugs in the pipelines of local companies, making up nearly 15% of the national drug pipeline. Boston ranked as the top Life Science market in JLL’s 2023 Life Sciences Industry and Real Estate Perspective report. The Massachusetts’ Biomanufacturing workforce experienced 6.3% growth in 2023, outpacing New York and California. Boston’s medical device companies have a combined market capitalization of over $100 billion.
AI, Big Data & Analytics
The Boston Dynamics AI Institute in Cambridge is dedicated to solving the most important and fundamental challenges in robotics and AI. The Boston Institute of Analytics offers a range of professional training courses, including certifications in Big Data Analytics and Data Science and Artificial Intelligence. The Digital Health & AI Innovation Summit will be held in Boston in October. AI weather platform Tomorrow.io raised a $87 million Series E in a June 2023.
Fintech
Home to many financial institutions, hedge funds, and private equity firms, Boston has both a robust financial industry and lively Fintech ecosystem. Fintech Women helps Boston-area women advance professionally and build a diverse Fintech ecosystem. FinTech Sandbox is a Boston nonprofit that drives global Fintech innovation and collaboration. Fintech startup Digital Onboarding raised $62.6 million over nine rounds, including a $58 million round in January. Boston Fintech Week was held in October.
Reasons to Move Your Startup to Boston
Educated Talent
Home to some of the best universities in the world, Boston offers companies a rich pool of educated talent. There are over 100 colleges and universities in the area, including MIT, Tufts, Northeastern, Boston College, and Harvard. Massachusetts has the highest concentration of individuals with bachelor’s and master’s degrees of any U.S. state. Boston ranked #7 in CBRE’s 2023 Scoring Tech Talent report.
Convenient Location
One of Boston’s greatest strengths is its accessibility. Travelers can get to major business hubs New York and London with ease, making the city an ideal base for entrepreneurs managing multiple teams and time zones. Boston Logan International Airport offers direct flights to over 100 domestic and international destinations and is serviced by over 40 different airlines.
Support & Mentorship
With its large, established ecosystem, Boston offers founders a vibrant community and a host of startup-focused events. SCORE Boston provides free business workshops and business mentoring from experienced advisors. Startup Boston events are a platform through which innovators can learn from one another, build partnerships, and strengthen ties.
Explore more ecosystems
Get connected
Are you interested in diving deeper into this ecosystem? Drop us a message. Our Ambassadors and Partners can plug you in.