MassVentures Closes Three Deals with Deep Tech Startups
WALTHAM (December 9, 2022) MassVentures announces its first three deals with funding from the U.S. Department of Treasury’s State Small Business Credit Initiative (SSBCI). SSBCI awarded MassVentures $20 million in October to expand its investments in technology startups, with a focus on underserved founders, including women, Black, and Latinx founders, or those based in underserved regions outside the Boston/Cambridge area. The funding was part of an overall award of nearly $169 million to the Commonwealth from the U.S. Treasury.
MassVentures led, or co-led seed investment rounds in the following companies:
In a Series A round, MassVentures additionally invested in JetCool, with headquarters and manufacturing in Littleton MA. JetCool is leveraging advanced materials for liquid cooling, offering sustainability solutions for high powered electronics (e.g., data centers, quantum computing). Direct to chip cooling allows data centers to reduce energy usage by 8 percent and water usage by 90 percent.
MassVentures has leveraged nearly seven times its total investment in additional private capital in the investments made to date with the SSBCI funds.
“We are excited to invest in these promising startups that are each developing novel solutions to critical societal and environmental challenges,” said Charlie Hipwood, CEO and president of MassVentures, adding, “And we are just getting started investing the SSBCI funds.”
The State Small Business Credit Initiative (SSBCI) was established by Congress as part of the Jobs Act of 2010 and was reauthorized in the American Rescue Plan Act (ARPA) of 2021, which authorized $10 billion to be allocated nationwide. The Commonwealth was awarded $168,591,178 that will be disbursed in three tranches to three quasi-public agencies, including MassVentures.
“This major federal investment will directly benefit our economy by empowering small businesses and entrepreneurs in Massachusetts – especially our smallest and underserved businesses – with the capital they need to grow,” said Housing and Economic Development Secretary Mike Kennealy. “MassDevelopment, Massachusetts Growth Capital Corporation, and MassVentures already play a critical role advancing equitable business growth in the Commonwealth, and this funding will allow these agencies to expand their loan offerings to reach more companies.”
MassVentures focuses on deep tech startups developing scientific and engineering breakthroughs that often disrupt or create new markets. The deep tech sector includes, but is not limited to, advanced manufacturing, advanced materials, artificial intelligence, robotics, photonics, electronics, quantum computing, cleantech, medical devices, biotechnology, IoT, health security, and cyber security. MassVentures’ full platform of seed investment, grant funding and business advice helps deep tech startups grow and create jobs while seeding the industries of the future.
MassVentures is the Commonwealth’s strategic venture capital team. Its mission is to support the state’s innovation economy and economic growth initiatives by helping to transfer research and early-stage innovations to viable technology businesses and jobs.