I’m really excited you’re here. MGMT Boston is a project I’ve been working on for a few months but thinking about for much longer. Some of the details have shifted but the core focus has always been the same – what’s the best way to highlight the operating leaders who help startups grow? If Founders, Executives, and Investors are the atomic units of a startup ecosystem I’ve always felt that an equally fundamental ingredient is strong operating leadership. That’s what returns capital to shareholders and grows ecosystems.
So here’s the plan. Each week we’ll highlight…
- One fast growing & interesting local Boston startup
- One local operating leader (non-founder & non-exec) who helps their company grow
MGMT Boston is meant to tell the stories of the Boston tech ecosystem through the eyes and insights of up and coming leaders. The leaders doing the work. While they’re managing their careers, we’ll try to help manage their awareness of the best startups in Boston and their fellow leaders that help those companies grow. Their best startup friend, if you will. See what I did with the logo?
But before we begin, I’ve got to catch everyone up on my journey of the past few months. Working my way around town trying to figure out the Boston software startup scene. Like a rolling stone, I’ve been gathering steam each week. And let me tell you, the learnings blew me away. Let’s get to it!
Boston is a B2B software town. At least by reputation. Anchored by companies like Hubspot, Toast, LogMeIn (GoTo) and Rapid7. Although Chewy, Wayfair, TripAdvisor, DraftKings, Whoop, and others might beg to differ. The birth of venture capital too, if you didn’t know. Boston has a reputation of an “old school”, “conservative” ecosystem focused on path to profitability and a more constrained funding environment. Yet there is serious frontier tech being built here. Robotics, nuclear fusion, self driving AI, renewable battery startups, etc. A startup city of contradictions.
On the software side of things there is significant representation from Cybersecurity, Analytics & MarTech with additional sector representation ranging from FinTech (insurance, real estate + “late to innovate” markets) to AI to Blockchain/web3 and beyond. There’s a pretty good sports tech scene here too.
Oh and maybe you’ve heard? There are some biotech companies here. But that’s a whole separate landscape we’ll be putting aside for now..
Perhaps the most critical insight I can share with you from my dozens of conversations is that what it means to be a Boston startup is changing. The tectonic COVID shift of 2020 is still settling. Most companies are hybrid or fully remote. Those that have decamped call it out proudly on their websites & LinkedIn company pages. There are plenty of “split HQ” startups with GTM teams in Boston and Engineering teams in places like London, Tel Aviv, or Eastern Europe. Engineering talent is cheaper internationally and U.S. HQs still carry the largest valuation multiples after all.
Regional HQs are here too. DataDog, ZoomInfo, Dell (EMC), Google, Oracle, Salesforce, Amazon, and Spotify all have a Boston presence. I’m sure there are many others.
There are some sick unicorns out there. This isn’t unique to Boston. Layoff news, gaps in fundraising announcements, and Glassdoor reviews detailing management concerns give directional hints. And yet this city feels much more insulated than our West Coast sister city by the Bay. You don’t feel the fear here you do out there. A diversified city of contradictions indeed. Allow me to also share that layoffs or limited job postings don’t necessarily mean a company is a sick one either! There’s a major tech wide rightsizing happening after a decade+ of low interest rates and loose funding.
Circle, Snyk, Klaviyo, & Starburst seem best positioned to be the next successful cohort of Boston public tech companies. Their names come up consistently in conversation.
There is something like 3,000+ startups & 500+ investment firms in the Boston area. There are approximately 300-500 growth stage (Series A+) companies too. That’s a real ecosystem right there people!
Endeca has a really cool alumni mafia. A company from years past acquired by Oracle in 2011 has had a major outsized impact on this ecosystem. The Founders of Salsify, Toast, Parallel Wireless, and Jellyfish all have roots there. Would love to understand the Endeca story better in the months ahead.
Company culture and team culture can be distinct. For example, you might have a more transactional “mid market” GTM motion that results in high sales team turnover but much more stability on the Customer Success, Finance, Marketing, Engineering, etc teams.
BostonInno & BuiltInBoston seem to be the best local resources for companies, job postings & news. Newsletters like StrictlyVC, VentureFizz, Axios Pro Rata, & Term Sheet round out the national coverage.
It’s all about people. There’s the university networks, accelerator networks, startup mafias, and venture firms. How hard is it to break in? Too soon to determine.
- University Networks: Harvard, MIT, Northeastern, Babson, etc
- Accelerators: TechStars, Mass Challenge & Greentown Labs
- Startup Mafias: Hubspot, Wayfair, Toast, Endeca, and more!
Angel investing is not as much of a badge of honor like it is in the Bay Area. I hope that changes and it sounds like there are efforts underway to coalesce angel networks.
There’s been a fair amount of Private Equity M&A activity over the past few years. Vista Equity, in particular, has been active snapping up local companies like Acquia, Bullhorn, Drift, and Pluralsight. I hope more companies stay independent and go big for Boston in the years ahead.
Next week we’ll begin our regular programming. Please send over some of the best local operators / leaders that come to mind & deserve to be highlighted. There’s a lot of great companies and great people that could use some exposure!
Company:
Operator:
Thanks for your support and look forward to starting this journey alongside you all! See you next week!
-Matt