Boston's startup market has more to offer than a record-setting start to the year. Say goodbye to Series A gaps and valuation discounts, Northeast startups
Global startup communities are currently experiencing unprecedented fundraising success. This is happening all over the globe, but Boston is the hub for this surge in capital.
Although Boston is well-known as a US capital hub, it has fallen behind New York City and Silicon Valley in recent years. Data shows that Boston's startup activity has reached a new high, with record amounts of money being funneled into its upstart technology companies.
Local investors believe there is potential for acceleration in capital disbursement.
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The Exchange wanted to understand the driving forces behind Boston's rapid-fire results and determine if there was any need for caution. Is the market too hot? Local investors Rob Go, Jamie Goldstein of Pillar VC, Lily Lyman, Underscore, and Sanjiv Kalevar, all local investors, believe that things are more than hot. However, Boston's accelerating venture capital numbers in 2021 is not based on FOMO, or other potentially ephemeral trends.
Boston is now benefiting from greater structural changes to the U.S. venture market. This has helped close gaps in the startup capital market and allow for access to funds previously unavailable to the region. The city's ability to create new companies is being boosted by the presence of local universities, which are not hurting its cause.
Let's start with data and then we will hear from the investors crew about what's happening in Beantown.
Record year
Venture capital data is often slow. Rounds are announced after they have closed. This means that the most recent data may be less reliable than previous data. We can only say that Bostons 2021 has been amazing so far.
