Boston is quietly producing one of the most successful classes of startups in the nation, at least in terms of fundraising.
The 44 companies – including OnChip Power, Valerion, Ginger.io, Sample6, Peer Transfer, GrabCAD, Boundless, Localytics, Kinvey, and Anthurium Solutions – that in 2011 joined Dogpatch, TechStars and the Venture Development Center, have raised a total of $174,979,832.
Here’s how fast they’ve raised it:
- 12 months after joining, their total raised was $77,504,000. TechStars share was 19%; Dogpatch was 39%; and the Venture Development Center was 42%.
- 18 months after joining, the number stood at $125,181,790. TechStars share was 33%; Dogpatch 38%; and the Venture Development Center 29%.
- Now, 30 months after joining, the total raised has climbed to $174,979,832. TechStars share is 30%; Dogpatch 35%; and the Venture Development Center 35%.
Last time we checked, at the 18 month mark, this class was doing better than any other in the nation. The 67 companies that started in 2011 at Y Combinator, 500 Startups and Launchpad LA in California had raised $88,674,690, and averaged $1,323,503. Their collective fundraising success rate was 67%.
The 44 companies in Dogpatch, TechStars and the Venture Development Center were more successful. They had raised $125,181,790; the average was $2,845,041; and the fundraising success rate was 80%.
The individual fundraising success rates 18 months in were: Dogpatch 70%; Venture Development Center 83%; 500 Startups 75%; LaunchpadLA 70%; Y Combinator 64%; and TechStars 92%.
There are many ways incubator programs add value – validating a business model, providing a physical location, creating a network, etc. But follow-on funding is the one thing almost all startups want in their early stages. And Boston’s incubators clearly are delivering, at least for the Class of 2011.