Venture capital moves to Cambridge and Boston

Cambridge and Boston have taken the lead as the first and second destination for venture capital within Massachusetts. The two cities, which previously maintained a slight lead from other destinations like Waltham and Woburn, have recently stolen capital share from neighboring cities.

Below are two heatmaps, developed by CB Insights Industry Analytics, which consist of venture funding and deal activity. The first map depicts Q3 2008 through Q3 2010 while the second depicts Q3 2010 to Q3 2012.

 

In the Q3 2008 – Q3 2010 map above, Cambridge and Boston are the primary destination for venture capital while Waltham and Woburn trail closely behind. However, the gap only widened over time  in the next map.

Woburn lost a significant amount of venture capital and is now on par with cities like Newton, Lexington, and Burlington. Cambridge has taken the clear lead in both venture capital deals and dollars.

Although Boston’s investment has remained strong, the level of activity in Cambridge in unparalleled. In the past year, Boston experienced $541 million in funding and a total of 63 deals. Cambridge’s funding levels were a substantial 183% higher while deal activity was 194% higher. Cambridge received $305 million in 30 venture capital deals in just the past quarter. Over the past 4 quarters, Cambridge has received a total of $991 million in funding. The graph below displays Cambridge’s venture capital trends since 2007:

For more on the topic visit CB Insights website.