Over the past few years, it’s no secret to Boston-area entrepreneurs that venture capitalists have been moving back into Cambridge and Boston from places like Waltham’s Winter Hill, Lexington, and Wellesley. Off the top of my head, I can name Atlas, Highland, Bessemer, Greylock … and that’s just a quick list.
Firms like Polaris (through Dogpatch Labs) and CommonAngels have also opened presences in Kendall Square. (Here is an account of Boston VC migrations I compiled in 2011 that captured the bulk of the moves.)
Now, and not surprisingly, the payoffs of these moves are evident in a new study of deal activity that shows Cambridge has taken the clear lead as the center of venture activity in the Bay State. The study, by New York data services firm CB Insights, covers both corporate and private venture firms, as well as angel groups.
As CB Insights states, “Massachusetts is the #2 destination for venture capital in the U.S. but within the state, there appears to be a shift happening as cities like Cambridge and Boston steal venture capital share from other destinations like Waltham and Woburn … The clear winner in Massachusetts has been Cambridge with the lead in both VC deals and dollars.”
The report looks at quarterly venture and angel deals in Cambridge, Boston, Waltham, and Woburn over the past five years, starting in the fourth quarter of 2007 and ending in Q3 of this year. You can see from the charts below that Cambridge roughly doubles over this time. Here are some quick takeaways from the study:
Below are the charts for Cambridge, Boston, and Waltham (all data from CB Insights). The blue bars are dollar totals invested each quarter, the orange lines show the deal numbers. You can find additional analysis and more charts (including data for Woburn) in the full report.
Cambridge Venture and Angel Deals
Boston Venture and Angel Deals
Waltham Venture and Angel Deals