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MTDC Launches Fast Track Program to Fund MassChallenge Finalists
Supplemental Funding to Incent Entrepreneurs to Headquarter in Massachusetts
BOSTON, MA (October 18, 2011) – Massachusetts Technology Development Corporation (MTDC) has partnered with MassChallenge to create the MTDC Fast Track program to further fuel the success of the MassChallenge 2011 finalists and make it easier for those companies to remain in the Commonwealth. Following the MassChallenge Awards Ceremony, where the top MassChallenge companies will be awarded a total of $1,000,000, MTDC will select five of the twenty-six top companies to participate in the MTDC MassChallenge Fast Track program. MTDC will put the five companies through an accelerated diligence process selecting two companies for additional seed funding. On January 15th, MTDC and MassChallenge will announce the two companies that will receive a funding commitment from MTDC.
MTDC is focused on bridging the capital gap for Massachusetts entrepreneurs and driving more startup companies to headquarter within the Commonwealth. Providing early stage capital will ultimately stimulate the economy by catalyzing the creation of jobs. "Sustaining positive momentum is critical to the success of startup companies. Our goal is to provide funding right out of the gate to some of the promising companies coming out of MassChallenge," said MTDC President Jerry Bird. "We want them to stay in Massachusetts and contribute to our vibrant innovation economy."
"Small businesses and entrepreneurs help drive the Massachusetts economy and the Patrick-Murray Administration is committed to keeping those businesses and their talented workforce in the Commonwealth," said Secretary of Housing and Economic Development Greg Bialecki. "The MTDC and MassChallenge partnership will help support that goal and allow these companies to expand and grow in Massachusetts."
"We need to launch more high-growth businesses to revitalize the economy both in Massachusetts and the United States," said John Harthorne, Founder and CEO, MassChallenge, Inc. "MassChallenge is the world's largest and, we believe, most effective private-sector platform for accelerating the launch and success of high-growth businesses. We are excited to begin a relationship with MTDC to further enhance the Massachusetts start-up ecosystem and help fund first-time entrepreneurs."
In January 2011, President Obama honored MassChallenge as one of the nation's best organizations for supporting high-growth entrepreneurs. MassChallenge startups represent all industries and levels of development within the early-stage spectrum and with several hundred promising young startups in the mix, MassChallenge organizers expect a significant acceleration of growth and job creation over the next 24 months. That pace will only accelerate as more alumni are created each year. In August, Ksplice, a 2010 MassChallenge winner, was acquired by Oracle, marking the first exit of a MassChallenge-supported startup. In addition, the Huffington Post recently acquired 2011 finalist Localocracy.
About Massachusetts Technology Development Corporation (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.
In 32 years MTDC has invested over $83 million in 133 Massachusetts technology companies many of which have had successful exits including 16 IPO's. MTDC is a catalyst for the growth and funding of these companies. Nearly one billion of capital from co-investors has gone in alongside MTDC to create companies and employment in the state. Please visit www.mtdc.com to learn more.
About MassChallenge
MassChallenge is a $1M global startup competition and accelerator designed to catalyze the launch and success of high-growth, high-impact new businesses. MassChallenge is a 501(c)(3) (non-profit) and does not take equity from startups or place any restrictions on winners. MassChallenge was the youngest inaugural member of the Startup America Partnership.
The second annual MassChallenge Competition launched on March 7, 2011 and received over 725 entries. 10-20 winners will be announced on October 24, 2011 and will split $1M in cash awards. The competition is open to any new startup, in any industry. Every entrant receives training, feedback, PR and networking support via expert volunteers from partner organizations. 125 of the highest-potential startups receive 3+ months of intensive mentorship and other free resources, including office space and targeted introductions to customers and funding sources. The very best startups are identified by expert judges to receive cash awards toward launching their businesses along with enhanced PR and privileged access to top investors seeking to place seed capital to work in high-growth firms. This is an ideal means for America to harness and showcase the expertise and collaborative strength of our universities, investors, lawyers, entrepreneurs and businesses. You can read more about MassChallenge at www.masschallenge.org.
Contacts:
MassChallenge
Scott Bailey
888-782-7820 ext 704
sbailey@masschallenge.com
Mass Technology Development Corporation
Jerry Bird
President
617-723-4920
jbird@mtdc.com
