Report Shows MassVentures Generated $3.3 Billion in Annual Economic Activity Since its Founding
BOSTON – Today, the Executive Office of Economic Development and MassVentures, the state’s quasi-public venture capital agency, released an economic impact report finding that since its creation in 1978, the agency generated an annual average of $1.9 billion in total state GDP, $3.3 billion in economic activity, and $119 million in state and local tax revenues. In addition, MassVentures directly supported an average of 4,346 jobs each year.
MassVentures engaged the UMass Donahue Institute to conduct the economic impact study. To access the full report, visit www.mass-ventures.com/venture-program.
"MassVentures plays a critical role in fueling the innovation economy in Massachusetts by bridging the gap for startups bringing groundbreaking ideas to market," said Interim Economic Development Secretary Ashley Stolba. “We are proud of the impact MassVentures has had since its founding nearly fifty years ago, launching more than 180 companies, creating thousands of jobs, and strengthening our economy.”
“MassVentures is one of the most successful and impactful government-initiated programs on a per dollar basis in the United States,” said MassVentures President and CEO Charlie Hipwood. “With just $8.5 million in state taxpayer money invested since 1978, we have supported 186 companies with investment, generated thousands of jobs annually, contributed billions to the state’s economy, helped grow the venture capital ecosystem, and funded our operations for 46 years.”
“For the analysis, the UMass Donahue Institute applied IMPLAN, a widely used econometric model to capture both the direct and downstream (multiplier) effects of MassVentures’ companies as their activities reverberate throughout the Massachusetts economy, ultimatelyresulting in the growth of jobs, gross state product, and tax revenues,” said Dr. Mark Melnik, Director of Economic and Public Policy Research at the UMass Donahue Institute.
The report addresses the direct, indirect, and induced effects of the venture fund, its primary mechanism for creating economic impact. For every $1 million of taxpayer dollars (inflation adjusted), MassVentures generated $429 million in total state and local tax revenue and $7 billion in state GDP. On $8.5 million of taxpayer money received since MassVentures was created, the agency generated:
$112 million invested in 186 companies
$4.6 billion in leveraged private capital
$5.6 billion in state & local tax revenue
$89.9 billion in total state GDP
$157.6 billion in output impact
535,200 total job years, a measure of labor in units of one job worked for an entire year
MassVentures was founded nearly 50 years ago when there were fewer than 20 venture capital firms in the world. Formerly known as the Massachusetts Technology Development Corporation (MTDC), MassVentures was established as a quasi-public corporation by the Commonwealth of Massachusetts to address the capital gap for startup companies in Massachusetts and to encourage the growth of early-stage technology firms. MassVentures supports seed-stage deep tech businesses and crowds in private capital to technologies and industries that are important to the Commonwealth.
About the UMass Donahue Institute
Established in 1971, the UMass Donahue Institute is a public service, research, and economic development arm of the University of Massachusetts. They address critical questions and develop innovative solutions to help organizations and agencies from both the public and private sectors meet challenges, measure success, and set goals. Applying their combined knowledge, expertise, and resources they serve a range of clients, from small non-profit organizations to large global corporations, as well as municipalities, federal agencies, school districts, and statewide associations. For more information: www.donahue.umass.edu.
About MassVentures
MassVentures, the state’s quasi-public venture capital agency, helps early-stage deep tech companies grow in Massachusetts. Founded in 1978, MassVentures offers capital investments, grants, business guidance, and a network of partners to help businesses succeed. In addition to financial resources, MassVentures also provides strategic direction, operational support, and enhances the success of their portfolio companies. For more information visit www.mass-ventures.com.
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