Worcester Business Journal

Local investor experts agree that Greater Worcester falls within the Boston-area venture net. An hour's drive is nothing if an investor is intrigued by a business, said Joe Rubin, managing director at FundingPost, a C onnec tic ut-bas ed networking organization that connects startups with venture capitalists and angel investors. Geography is just one factor investors consider when sizing up a deal, and if there's a fund that's a good fit, most are willing to go almost anywhere, he said. As the NCVA figures indicate, venture capitalists in 2015 are an eager lot. Rubin said people who have money to invest are increasingly considering venture funding. He attributes some of that to ABC's popular reality television series "Shark Tank," in which people present pitches to famous investors in hopes of taking their companies to the next level. "I'd say there's a lot of discussion on early-stage investing. It's a hot topic," said Rubin, who is also a partner with ARC Angel Fund, a New York City angel investor group. "It's kind of a cool thing to do. It's good water cooler talk." While the Boston area may be seen as just as much a hub for venture funding for Central Massachusetts companies as it is for those based in Greater Boston, some local sources say having more locally-based venture funding sources wouldn't hurt. Local VC players There are a couple of local organizations that are already active in the venture space. One is Boynton Angels, a Westborough-based group of angel investors who are in the business more for the fun of it than the return on investment. Peter Aranow, a retired investment banker and former chief financial officer who lives in Uxbridge, became involved with Boynton back in 2006. It had recently been launched by Worcester Polytechnic Institute, and Aranow saw it as an opportunity for intellectual stimulation. While Boynton invests in a variety of sectors, and in companies located throughout New England, a venture with a local connection is more likely to make it through the screening process to pitch at Boynton's monthly pitch sessions, which Aranow described as "exactly like Shark Tank" in nature. "A Worcester company is more likely to get a hearing from us," Aranow said. That said, Boynton has made only a couple of local deals. Aranow recognized that angel investment is in a separate category from traditional venture capital since angel investors are usually the first to provide funding to startups that they didn't generate through personal savings and contributions from family and friends. Statistically, most companies that angels fund don't survive long-term. "Eight out of 10 don't work out," Aranow said. For more advanced companies seek- ing venture capital in Greater Worces- ter, there is another organization with a local focus. Long River Ventures, of Amherst, is headed by former Boyn- ton investor Will Cowen, and Tripp Peake, who has more than 20 years of experience in venture funding. Early-stage investors are more likely to flock to places like Boston and the Bay Area, but that doesn't mean Central Mass. doesn't deserve more attention BY EMILY MICUCCI Worcester Business Journal Staff Writer A leading center for venture capital deals, Boston has placed third for venture capital investment for five consecutive years, according to the National Venture Capital Association. Boston-area startups landed 371 deals in 2014, according to the group, known as the NVCA, for a total of $4.4 billion — an increase of 37 percent over 2013. And it's not just venture capital strongholds like San Francisco, San Jose and Boston that are enjoying a rise in venture deals. The number of U.S. cities in which deals were made last year climbed to 160, compared to 148 in 2013, with Springfield among the cities to produce a venture capital deal for the first time in the five years, the NVCA reported. What about Worcester? 12 Worcester Business Journal • September 14, 2015 www.wbjournal.com Why is Worcester not a VC magnet? FOCUS Banking & Finance

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