MTDC relaunches as MassVentures to Support Innovation in the Commonwealth

New $5 million fund capitalized by MassDevelopment
to spur early-stage, technology-driven companies

BOSTON, MA, June 14, 2012 – MTDC, the venture capital arm of the Commonwealth of Massachusetts, announced today that it is now operating under a new name, MassVentures, to support the formation and fuel the growth of innovative technology-driven companies in Massachusetts. This new name reflects new capital received to help identify and support promising entrepreneurs developing high-growth, technology-driven companies.

Through MassDevelopment’s Emerging Technology Fund, MassVentures will manage a new $5 million traditional investment capital fund to fill capital gaps (1) in emerging market segments not adequately served by the venture community, (2) of first-time entrepreneurs, and (3) with companies transitioning from seed to Series A funding. MassVentures expects to invest in four to seven new companies each year.

In addition, MassVentures recently launched a $6 million SBIR targeted technologies (START) program that provides supplemental grant funding to qualified companies with SBIR Phase II funding to accelerate the commercialization and growth of promising technologies.

MassVentures has two investment programs: the MassVentures’ Seed program, which provides early stage equity or convertible debt funding of up to $50K and, the MassVentures’ First Round program, which provides initial investments of $250K to $500K in Series A equity capital and follow-on funding.

“By supporting MassVentures, the Patrick-Murray administration is continuing to support and follow through on our long-term economic development plan’s goal of expanding our innovation economy,” said Greg Bialecki, the Secretary of Housing and Economic Development. “These new tools will allow MassVentures to further that growth.”

“The business community spoke and we responded. With the new investments and focus, MassVentures is well-positioned to lead and participate in investments alongside angels and venture capital firms that bring industry expertise, a track record of success, and a shared commitment to follow-on funding,” said Jerry Bird, President of MassVentures. “We look forward to working with local entrepreneurs, and partnering with the angel and venture communities to support innovation in the Commonwealth.”

“This partnership between MassVentures and MassDevelopment will allow the Emerging Technology Fund to add equity investments to further support the Commonwealth’s high-tech industry,” said MassDevelopment President and CEO Marty Jones. “Working together creates efficiencies to deliver more cutting-edge companies to grow and create jobs in the Commonwealth.”

About MassVentures

MassVentures meets critical capital needs in the Massachusetts innovation economy, providing seed and early stage venture funding to high-growth startups as they move from concept to commercialization.

The Boston-based venture firm was formed in 1978 as a quasi-public corporation by the Legislature of the Commonwealth of Massachusetts, governed by an independent Board of Directors, and managed by experienced venture capitalists. Leveraging the entrepreneurial spirit, educated workforce, and centers of innovation of Massachusetts, MassVentures has a track record of success with early-stage ventures. For more information on MassVentures and details on our new programs, please visit www.mass-ventures.com.

About MassDevelopment

MassDevelopment, the state’s finance and development agency, works with businesses, nonprofits, financial institutions, and communities to stimulate economic growth across the Commonwealth. During FY2011, MassDevelopment financed or managed more than 300 projects generating investment of $3.8 billion in the Massachusetts economy. These projects are projected to create more than 10,000 jobs (2,547 permanent and 8,129 construction), and build or rehabilitate more than 1,000 residential units.