What is the typical size of a MassCEC equity investment?
The average size of a MassCEC equity investment is $500,000, but investments have ranged anywhere from $100,000 - $1,500,000. Additionally, MassCEC reserves up to $500,000 per company for aggregate follow-on investments. Our financial support is designed to decrease over time in accordance with MassCEC's follow-on policy.
What is the typical size of a MassCEC venture debt investment?
MassCEC's venture debt investments can be anywhere from $100,000 to $1,000,000.
How does MassCEC compare to a typical private investor?
As an industry-specific publicly-funded investor focused solely on cleantech, MassCEC acts as a strategic, value-add investor. We seek to be actively involved in our portfolio companies through board or board observer roles in order to bring as much value to the company as possible. As a public agency deeply involved in the cleantech ecosystem, we can also offer a variety of resources to our portfolio companies beyond financial support by leveraging MassCEC’s other various programs and contacts.
Contrary to most traditional investors, MassCEC’s role as a public investor is particularly prominent in the early stages of a company’s development, and tends to lessen over time as the private sector increases its involvement in the company. This is also reflected in our follow-on policy, as MassCEC’s relative level of financial support tends to decrease over time.
MassCEC makes its investments alongside other private investors, so we invest on standard commercial terms and seek to make a financial return with our investments. However, financial return is only one of several goals, and MassCEC seeks to optimize overall impact with its investments. Some examples of this impact include advancement of technology, job creation and long-term cost reduction to the ratepayer.
Finally, due to its funding structure, MassCEC can provide more “patient capital” than a typical investor. While we always seek investments with exit opportunities, we do not have stringent timelines for those exits.
Additional details on MassCEC’s investment policy and strategy can be found here.
What does the “significant Massachusetts presence” requirement mean?
Your company must have a majority of the following offices based in Massachusetts (as applicable) in order to have a “significant Massachusetts presence”:
Primary research and development operations
Primary sales and marketing office
Primary manufacturing operations
Does MassCEC ever lead rounds?
Yes, we have led rounds in the past and are happy to make that contribution when it makes sense.
How long does it take for MassCEC to close an investment?
Based on the process outlined above, it typically takes anywhere from three to six months from our first meeting with a company to close an investment.
If my company receives an investment from MassCEC, what type of reporting requirements must I comply with?
As a publicly-funded agency, MassCEC is required to report on the impact of its investments. In order to do so, MassCEC requires that its portfolio companies complete a semi-annual request for information, in which MassCEC requests data around employment, external investment, patent filings and issuances, and financial information, among other information. MassCEC reports on this data in aggregate only, and confidential company-specific information can be exempted from the state public records law under the Massachusetts General Legislature, Chapter 23J, Section 2(k).
What if my company decides to move outside of Massachusetts after receiving an investment?
If your company no longer maintains a significant Massachusetts presence as defined above after receiving a MassCEC investment, the investment is subject to redemption by MassCEC.
How does MassCEC treat my confidential information?
An exemption to the Public Records Law may apply to certain records, including materials that fall under certain categories under a statutory or common law exemption, including the limited exemption at Massachusetts General Laws Chapter 23J, Section 2(k) regarding certain types of confidential information submitted to MassCEC by an applicant for any form of assistance. More information on the types of information that MassCEC considers confidential can be found here.