Boston: The home of biotech in the US
If you’re thinking about establishing a presence in the USA, Boston’s density of world-class institutions, biotech and pharma companies, investors, and talent makes it a winning choice.
When deciding where to base a biotech company in the US, Boston is likely to be top of the list. Put simply, it’s the home of the greatest biotech supercluster in the world.
Some 75 public biotech companies with a market value of more than $210 billion are based here – and for good reason. Having a biotech presence in Boston gives you access to an exceptional concentration of science, investors and talent.
Xconomy curates a list of venture capital funds that have an office in Boston. There are more than 100 listed and several of them are focused on investing in biotech and healthcare.
In 2014, tenants in LabCentral, a single building in Cambridge, raised more than $200 million dollars in seed stage venture capital funding – an amount higher than the entire Swiss biotech industry.
From 2009 to 2013, Massachusetts won a third of all US biotech seed stage funding. Boston investors prefer to work with companies based in the area, so having a presence in the city can be vital to securing capital.
Being in Boston also allows you to tap into a deep talent pool. Massachusetts is home to more than 82,000 life sciences professionals and the state has the most educated workforce in the US, with the highest percentage of residents with a Bachelor’s degree or higher.
Boston claims more than 100 colleges and universities, including world-leaders Harvard University and Massachusetts Institute of Technology.
Add to that its 16 research hospitals; 20,000 science and engineering graduates per year; plus the top three National Institute of Health-funded hospitals in the US. Together, they attract $2.5 billion in NIH funding, ranked second nationally behind only California ($3.6 billion).
It’s a compact and walkable city, making both formal and informal networking easy. More than 160 biotech and pharma companies have offices in the city’s 2.5-square mile Kendall Square.
A single building – the Cambridge Innovation Center – is home to more startups than anywhere in the world and companies there have raised more than $1.8 billion in venture capital.
Scientists, entrepreneurs and investors all work within blocks of each other, creating countless opportunities to meet potential business partners in the coffee shops, at networking events or even crossing the street.
Across the Charles River, there are two further biotech clusters. The Longwood area is home to top research institutions including Brigham and Women’s Hospital, Beth Israel Deaconess Medical Center, Joslin Diabetes Center, Dana-Farber Cancer Institute, and Harvard Medical School.
There are more than 17 million square feet of clinical and research space in just over 200 acres. The Innovation District, nestled along Boston Harbor, houses the world headquarters of Vertex Pharmaceuticals.
Massachusetts and the Greater Boston area have made a commitment to supporting the biotech and pharmaceutical industries. In 2008, the state government pledged $1 billion towards biotech over 10 years through grants, loans, and tax breaks.