MassVentures Announces 2012 “START” Program Winners

New funding to help 10 Massachusetts companies commercialize technologies

MassVentures announced on July 17, 2012 the 10 winners of the 2012 START program. START is a $6 million initiative funded by the Patrick-Murray Administration to help growing companies commercialize technologies developed under Small Business Innovation Research (SBIR) contracts. The program is intended to help high-growth companies grow employment opportunities, promote manufacturing and commercialization, and stimulate innovation across the Commonwealth.

The winners selected from more than 90 applicants are:

Artaic – Custom artistic tile mosaics, using proprietary CAD software and advanced robotic manufacturing systems

BioMinetic Systems – Design and manufacturing of digital acoustic detection and localization systems

Capesym – Novel materials for advanced radiation detection

CeraNova – CeraNova provides technological advantages with advanced nanograin,
transparent ceramics for optical, structural and electrical applications

Incom – Supplier of rigid fused fiber optics for commercial applications

KaZak Composites – Value-added composite materials engineering and production

Locately – Locately uses mobile technology to engage with shoppers while they’re making decisions

Metamagnetics – Advanced materials and electronics to develop novel microwave materials and device solutions

Muzzy Lane – Creator of innovative, award-winning educational games

Physical Sciences Inc. – Developing micro-air vehicle systems for surveillance and security applications

“Small businesses are the engine of the Massachusetts economy and the Patrick-Murray Administration is committed to supporting small businesses throughout the commonwealth to grow and create good paying jobs,” said Secretary Greg Bialecki. “Through programs like START, our small businesses are at the forefront of the 21st century economy and today’s START winners are a prime example of why Massachusetts is recovering faster and stronger than the nation.”

The 10 winners will receive $100,000 immediately and then based on progress demonstrated over the first year, an additional Stage II grant of up to $200,000 will be awarded to the five most promising companies. At the end of the second year, two companies will be chosen for a $500,000 investment based on their potential for growth and profitability. The program will be repeated annually with the application process opening again in early 2013.

“The success of the START program is due in part to the vision and commitment of Bob Weiss, President of Technology Transitions. With his help, MassVentures is one step closer to meeting its mission to help fill the funding gap and fuel the innovation economy,” said Jerry Bird, President of MassVentures. “This year’s winners are a strong indicator of the depth and breadth of innovative technologies coming out of the Commonwealth to support the economy and job growth.”

For more details on the program, eligibility requirements and the application and granting process, please visit www.mass-ventures.com/start.html.

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.

uTest named ‘Innovator of the Year’ by SBANE

Last night MassVentures portfolio company, uTest, was named a 2012 Innovator of the Year by the Smaller Business Association of New England (SBANE). More from CEO, Doron Reuveni, on his blog here.

New SBIR Targeted Technologies “START” Program to Help Fuel Innovation Economy

New $6 million state fund supports small business growth 
and provides extension of MTDC funding

March 23, 2012, Boston, MA – The Patrick-Murray Administration, along with Massachusetts Technology Development Corp. (MTDC), announced today the launch of the START program to help fuel the Massachusetts innovation economy. START is a $6 million initiative that will help growing companies commercialize technologies developed under the Small Business Innovation Research (SBIR) contracts. The START program will not only provide financial support but also coaching, business planning and introductions to potential investors, thereby driving job growth within the Commonwealth.

Massachusetts has long been a national leader in SBIR grants and dollars received; ranked second in the nation in dollars received, first in dollars received per capita and more than $3 billion in commercial sales of SBIR technologies generated to date. The new START program, one of the first of its kind in the nation, is aimed at helping fund the transition of technologies developed under SBIR Phase II awards into commercial products and services. The SBIR program funds feasibility studies in Phase I, technology development in Phase II and leaves commercialization to the private sector.

“The Patrick-Murray Administration has made a strong investment in making Massachusetts a world leader in the innovation economy,” said Greg Bialecki, Massachusetts Secretary of Housing and Economic Development. “START is focused on activities essential to successful commercialization, to help support promising Massachusetts companies looking to grow and stay here in the Commonwealth.”

MTDC will initiate the START program with Stage I grants of up to $100,000 each to 10 Massachusetts applicants that have won Phase II SBIR contracts and whose technology innovations have prospects for creating high-growth commercial products or services. Based on progress demonstrated over the first year, an additional Stage II grant of up to $200,000 will be awarded to the five most promising companies. At the end of the second year, two companies will be chosen for a $500,000 investment based on their potential for growth and profitability. The program is open to any Massachusetts applicant that has received Phase II SBIR contracts within the last 3 years. Life sciences and energy/clean-tech will not be considered under START as other Massachusetts programs support them.

START is consistent with the MTDC mission to fuel the innovation economy in the state. We are looking to address opportunities where, for many reasons, the private sector is not providing adequate development capital. The program will help pay for patents, build prototypes, perform market research and write fundable business plans and thereby grow our workforce and the economy,” said Jerry Bird, President of MTDC. “In addition to funding, MTDC has a track record of helping companies grow and achieve profitability and we expect to use our skills and knowledge to move START award recipients closer to commercialization, faster.”

For more details on the program, eligibility requirements and the application and granting process please visitwww.mtdc.com/start.

About Massachusetts Technology Development Corporation
Massachusetts Technology Development Corporation (MTDC), is a leading edge venture capital firm that addresses the “capital gap” for start-up and expansion of early-stage technology companies operating in the Commonwealth of Massachusetts. MTDC has invested in many of Massachusetts’ most promising new technology-based companies. More information is available at www.mtdc.com.

Contact Information:
Mass Technology Development Corporation
Jerry Bird
President
617-723-4920
jbird@mtdc.com

John Fitzpatrick
START
Program Manager
jfitzpatrick@mtdc.com

Three New Board Members join MTDC

MTDC and Governor Patrick Appoint Three New Board Members to Help Catalyze Innovation Economy

February 1, 2012, Boston, MA – Governor Patrick recently appointed Anita Brearton, Jeremy Halpern and Kanasha Herbert to the Board of Directors of Massachusetts Technology Development Corporation (MTDC). All three bring extensive experience and expertise building great companies and supporting the entrepreneurial ecosystem in Massachusetts.

“Massachusetts has become a world leader in innovation and the Patrick-Murray Administration is committed to continuing that trend,” said Chairman of the MTDC Board of Directors and Secretary of Housing and Economic Development, Gregory Bialecki. “These three new board members bring the experience and insight necessary to help direct MTDC towards its mission of building and supporting the growth of innovative technology-driven companies in the state to help accelerate job growth and the economy.”

Anita J. Brearton is the Executive Chair for FashionPlaytes.com, the first experiential commerce company to fuse mass customization, gaming and community to create a compelling shopping experience for the next generation of consumer, the digital girl. A seasoned marketing executive with extensive technology marketing experience, Anita has served in executive and consultative roles for a broad range of successful early-stage, high growth technology companies. As a consultant Anita worked with A123 Systems, Altruick, Airvana, Azuki Systems, and BTI Systems helping to shape the positioning and go-to-market strategies that enabled these companies to achieve their marketing and revenue goals. Anita served as vice president of corporate marketing at Sycamore Networks, where she took the company from its infancy through its IPO to become an established player in the Intelligent Optical Networking market. Prior to Sycamore, Ms. Brearton held senior marketing positions with Artel Video Systems, Cascade Communications and General DataComm.

Passionate about supporting women led enterprises, Anita is a Managing Director of Golden Seeds, an angel investment group that provides early stage and growth capital to women led businesses across all industry sectors. Her investments include FashionPlaytes, Carnegie Speech, SweetRiot Chocolate, Gracious Eloise, Honestly Now, Lark and Crimson Hexagon. Anita is also the founder of the Women’s Entrepreneurial Council in Boston, and an Entrepreneur in Residence at Simmons College. In addition to her work supporting female entrepreneurs, Anita serves on the board of the Angel Capital Association, the Massachusetts Technology Development Council, The Sunflower Initiative and the advisory boards of Altruik, Inc. and Connect2 Communications.

“I am looking forward to working with the MTDC team and board to build upon the great work already being done in Massachusetts to create an environment that fosters and supports innovation,” said Brearton.  “With a focus on providing capital that helps first time entrepreneurs and start-up companies in emerging markets move from concept to commercialization MTDC plays an important role in the innovation ecosystem.”

Jeremy D. Halpern is a partner in the Business Department and the Director of Business Development for the Emerging Companies Group of Nutter McClennen & Fish LLP. Jeremy’s practice focuses on private equity, venture capital and angel financing transactions, mergers and acquisitions, equity and entrepreneurial compensation matters, and general start-up support. Jeremy spends a large portion of his time connecting with and supporting the entrepreneurial ecosystem in New England. Concurrently, Jeremy serves on the Board of The Capital Network, a Boston-based non-profit that provides education to entrepreneurs seeking early stage capital, and as an Adjunct Professor of Entrepreneurial Leadership at Tufts University. He is currently a mentor for CJP PresentTense, a Connector in the Boston World Partnership, and is a proud co-founder of both BostonIDEA and MassApps.

Previously, Jeremy was the Managing Director of Evolution Advisors LLC, a Boston based strategic transaction advisory firm, and the Co-Founder and Executive Vice President of Business Development for MobileTek Corporation, a developer of PC based applications enabling smarter mobility for consumer mobile devices. Prior to that, he practiced corporate law with other national law firms in Boston and Los Angeles.

Jeremy participates with or is a member of Launchpad Venture Group, Boston Harbor Angels, MassTLC, The Capital Network, Web Innovators Group and MobileMondays.

“MTDC has put a stake in the ground to provide seed, gap and expansion capital to technology companies as they move from conception to growth. I am thrilled to work with the board and the incredible investment team to ensure that Massachusetts remains at the cutting edge of entrepreneurship and innovation,” said Halpern.

Kanasha S. Herbert is a business lawyer at Foley Hoag LLP’s Emerging Enterprise Center, where she advises startup companies on corporate formation, angel and venture capital financings and general corporate matters. She also advises venture capital firms on investments in portfolio companies and focuses on the high-tech, software and life sciences industries.

Kanasha’s business law practice focuses on advising public and private companies on a broad range of matters including mergers and acquisitions, financings as well as on assisting emerging companies in capital-raising activities. Kanasha regularly assists public companies with securities law compliance, including periodic reporting and securities registration. She assists investment advisors in the formation of onshore and offshore hedge funds. She also counsels clients, both public and private, on general corporate matters.

In addition to her business practice, Kanasha is active in Foley Hoag’s Pro Bono practice and has represented clients on domestic violence related matters and has provided legal assistance on housing and disability related matters. Kanasha was previously a hardware engineer at Hewlett Packard and Compaq Computer where she designed low to mid-range servers.

“Massachusetts has a wealth of talent in the technology sector that can contribute to the Commonwealth’s economic development,” said Herbert. “I am excited to participate in the venture capital ecosystem and help emerging companies grow into valuable participants in the state’s economy.”

“We are very pleased to have Anita, Jeremy and Kanasha join the MTDC board. Each brings their own perspective and expertise to help catalyze our state’s innovation economy through proficiency in startups, leadership, law and fundraising,” concludes MTDC President, Jerry Bird.

About Massachusetts Technology Development Corporation
Massachusetts Technology Development Corporation (MTDC), is a leading edge venture capital firm that addresses the “capital gap” for start-up and expansion of early-stage technology companies operating in the Commonwealth of Massachusetts. MTDC has invested in many of Massachusetts’ most promising new technology-based companies. More information is available at www.mtdc.com.

Contact Information:
Mass Technology Development Corporation
Jerry Bird
President
617-723-4920
jbird@mtdc.com

Godengo and Texterity Join to Offer First Comprehensive Digital, Web, and Mobile Publishing Solution for Magazines

After Acquisition Leading Technology Providers Now a One-Stop-Shop for More than 1,200 Titles

Berkeley, CA/Southborough, MA – To meet growing demand from the magazine industry for a comprehensive technology solution for digital content publishing, industry leaders Godengo, Inc. (http://www.godengo.com/) and Texterity, Inc. (http://www.texterity.com/) today announced that they have joined forces to create the first unified platform that’s focused on helping publishers leverage digital, web, and mobile media. Under terms of the completed transaction, Godengo, the largest provider of content management systems for magazine publishers, has acquired Texterity, a leading provider of digital magazines and mobile applications. Terms of the private deal were not disclosed.

The combined company provides services to more than 1,200 magazine titles owned by more than 500 publishers throughout the United States, Canada, and Australia. It is also the only technology-service provider in the space that helps publishers seamlessly transition, integrate, and enhance their content across multiple digital and mobile platforms, the companies said.

“Godengo and Texterity have complementary expertise, specializations, and cultures, and together we’ll offer a level of functionality and flexibility to clients that is well beyond anything currently in the marketplace,” said Peter Stilson, Godengo’s President and CEO, who will lead the combined company as CEO. “The publishing industry has been looking for a true partner that can meet the full scope of needs in cross-platform digital and mobile integration, and now it has one.”

Before joining Godengo, Stilson served as chief operating officer of Internet Broadcasting (IB) from 2000 to 2008. Prior to IB, he was executive vice president of Norstan Inc., a Minneapolis-based telecommunications company.

Stilson added that a key objective of the combined company, which will be re-branded in the months ahead, is to continue to grow its capabilities. “We’ve just completed raising a Series C round of growth capital and will use those resources to expand and enhance our services and products.” Capital for expansion and facilitating the purchase of Texterity was provided by investors including New Science Ventures.

Carl Scholz, who is currently President of Texterity and previously served as the company’s chief operating officer, will become President of the combined company. Previously, Scholz worked at Houghton Mifflin Company, and also held management and software engineering positions at the Open Software Foundation, Interactive Systems Corporation, and NCR Corporation.

Martin Hensel, who founded Texterity in 1991 and has been at the forefront of the digital publishing industry for more than two decades, will advise the new company as part of his new consulting practice for publishers and media technology firms.

Two Leaders Become One Source for Publishers
Godengo’s clients use the company’s industry-leading content management systems and browser-based software solutions to publish digital and online content for print magazines and weekly newspapers. The company works with media including city and regional, parenting, enthusiast, business, and association publications.

Texterity’s client roster includes Conde Nast, Meredith Corp., Oracle, Rodale, American Chemical Society, Harvard Business Review, IDG Communications, Crain Communications, and Entrepreneur.

In addition to developing digital editions of magazines, catalogues, and other publications, Texterity has strong expertise in building a mobile web reading experience and branded mobile apps for iPhone, iPad, Kindle Fire, and Android devices.

“With the scope of expertise and capabilities that our combined organization has, we now have products and services to meet the needs of the more than 18,000 magazine publishers in the market,” said Carl Scholz, President of Texterity. “We bring together a wealth of professional experience in management, engineering, sales, project management, customer support, and finance. There’s no question that we’re poised for dramatic growth.”

The Growing Digital Movement
While digital magazine formats are extending the reach of print editions and have been a positive development for the industry, key to continuing to attract digital subscribers is to focus on making the medium as interactive and user-friendly as possible versus just putting content onto websites.

“Our industry is making progress in term of transitioning into digital and mobile media, but to achieve the significant potential they have to offer, we need to improve our overall approach to and use of them,” said Michael Osenga, President, Diesel & Gas Turbine Publications. “The combination of Godengo and Texterity is an extremely important move for our industry, and I think I speak for many publishers when I say we see this as an exciting development.”

William Cobert, CEO of EBITDA Media, LLC., a media consulting firm, served as an advisor for Godengo in its acquisition of Texterity.

About Godengo, Inc.
Based in Berkeley, Calif., Godengo provides publishers with robust online products and digital advertising platforms. These products and services enable publishers to offer their content to their loyal readers through a variety of different media formats. Digital Sales programs provided by Godengo enable publishers to compete more effectively, both online and on mobile/digital platforms while at the same time creating new revenue streams for themselves. Godengo’s Rivista content management system (CMS) is being used by more than 200 titles and many of them were able to double or triple their web traffic in the first six months. The Godengo Online Ad Network harnesses an affluent, upscale audience that reads the wide variety of publications, providing regional and national advertisers with a focused reach into niche and local markets. For more information, visit http://www.godengo.com/.

About Texterity
Texterity (http://www.texterity.com/), founded in 1991, is a privately held company located in Southborough, MA. As a leader in digital and mobile publishing solutions, Texterity creates, maintains, and tracks more than 750 digital editions and builds magazine-branded apps for B2B, consumer, association, niche, and educational titles. Texterity currently has hundreds of magazine-branded apps in Apple’s iTunes Store, Android Marketplace/Google Play, and Amazon’s Appstore for Kindle Fire. Their “Total Mobility” program puts publishers on five platforms simultaneously. For more information, please visit http://www.texterity.com/inforequest.

About Massachusetts Technology Development Corporation
Massachusetts Technology Development Corporation (MTDC), is a leading edge venture capital firm that addresses the “capital gap” for start-up and expansion of early-stage technology companies operating in the Commonwealth of Massachusetts. MTDC has invested in many of Massachusetts’ most promising new technology-based companies. More information is available at www.mtdc.com.

Contact Information:

George Sopko
Stanton Public Relations & Marketing
(646) 502-3507
GSopko@StantonPRM.com

Jason Morley
Stanton Public Relations & Marketing
(646) 502-3570
JMorley@StantonPRM.com

Mass Technology Development Corporation
Jerry Bird
President
617-723-4920
jbird@mtdc.com

MTDC-Backed Cambridge Viscosity Acquired by PAC

MTDC looks towards future investments to support
Massachusetts technology industry

Boston, MA, June 4, 2012 – MTDC-backed Cambridge Viscosity (CVI) announced it has been acquired by PAC, a leading global provider of advanced analytical instruments for laboratories and online process applications.  The acquisition of CVI will compliment PAC’s wide range of analytical resources for its global customer base.

MTDC has established a track record of successfully funding innovative technology companies in the state to promote job growth and innovation across a broad range of industries.  It operates as an “evergreen fund” which uses gains realized from past investments, such as CVI, as the primary source of funds for its operations and future investments.

“MTDC has long supported CVI both financially and with its business expertise.  We value their support and long-term commitment to drive the company forward and help grow our business in the state,” states Robert Kasameyer, President of CVI. “With the acquisition, Cambridge Viscosity will continue to advance its technology, products, and services to meet the needs of its customers while capitalizing on PAC’s global reach and technology base.”

“CVI’s strong product offering and leadership team has proven to be a perfect example of the types of businesses MTDC likes to help grow and nurture here in the Commonwealth.  The acquisition should provide an excellent opportunity for CVI to build on its momentum and solid customer base,” states Nick Pappas, Vice President, MTDC. “We are excited for the team and look forward to investing our proceeds into other promising early-stage MA technology companies in the near future.”

About MTDC

Massachusetts Technology Development Corporation (MTDC), is a leading edge venture capital firm that addresses the “capital gap” for start-up and expansion of early-stage technology companies operating in the Commonwealth of Massachusetts. MTDC has invested in many of Massachusetts’ most promising new technology-based companies. More information is available at

Contact:

Nick Pappas

MTDC