For years, Boston has been at or near the top of the list in venture capital invested per capita in the US. Today, hundreds of emerging tech companies and thousands of entrepreneurs and investors call Boston home. New local media outlets have launched to focus specifically on Boston tech, while traditional publications cover the area’s innovation economy more than ever before. Countless coworking spaces, incubators, and accelerators have emerged, and at all hours, local bars and coffee shops are full of entrepreneurs and investors hatching plans for the future.
When people think of startup innovation in Boston, they often think of Ed Tech or Biotech. As the city continues to grow as a central location for technology and innovation, it is becoming more known for its impressive fintech space. Thanks to its strong financial institutions, such as Fidelity Investments and State Street Corp., as well as its many hedge funds and private equity firms, Boston is a great place for fintech startups to take off. With its great public transportation system and relatively reasonable living expenses, Boston is a top choice for entrepreneurs over cities like New York or London. While New York and London have stronger financial districts, they both have high costs of living compared to Boston.
Boston has well-funded FinTech startups across many sectors, with standout companies across the payments, capital markets, and insurance sectors. Kensho’s recent Series B round grabbed the headline, but Circle, Quantopian, EverQuote and Toast have all raised $20M+ rounds in the last year as well. The prevalence of Boston-based VCs as investors in these companies is notable, as Bain Capital Ventures, Spark, F-Prime Capital, Bessemer, General Catalyst and others appear as investors in several companies.
No startup hub thrives without a strong network of supporting non-profits, industry groups and corporates. Since its inception in 2015, the FinTech Sandbox has helped many fintech startups build great products through access to free data, hosting, and mentoring from around the Boston FinTech community. The first Boston FinTech Meetup was held in the fall of 2013, drawing just 13 people around beers and pizza. 2,000+ members and dozens of meetups later, the group now serves as the premier meeting place for entrepreneurs and financial professionals alike to network and discuss all things FinTech.