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MassChallenge

 21 Drydock Avenue, Floor 6
 Boston, MA 02210
[P] (888) 782-7820
[F] --
www.masschallenge.org
[email protected]
Dina Samra
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INCORPORATED: 2010
 Printable Profile (Summary / Full)
EIN 27-0382989

LAST UPDATED: 08/04/2017
Organization DBA --
Former Names --
Organization received a competitive grant from the Boston Foundation in the past five years Yes

Summary

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Mission StatementMORE »

Our mission is to catalyze a startup renaissance. We connect entrepreneurs with the resources they need to launch and succeed immediately. We envision a creative and inspired society in which everyone recognizes that they can define their future and is empowered to maximize their impact.

Mission Statement

Our mission is to catalyze a startup renaissance. We connect entrepreneurs with the resources they need to launch and succeed immediately. We envision a creative and inspired society in which everyone recognizes that they can define their future and is empowered to maximize their impact.

FinancialsMORE »

Fiscal Year Jan 01, 2014 to Dec 31, 2014
Projected Income $5,000,000.00
Projected Expense $4,600,000.00

ProgramsMORE »

  • MassChallenge Annual Startup Competition and Accelerator Program

Revenue vs. Expense ($000s)

Expense Breakdown 2015 (%)

Expense Breakdown 2014 (%)

Expense Breakdown 2013 (%)

For more details regarding the organization's financial information, select the financial tab and review available comments.


Overview

Mission Statement

Our mission is to catalyze a startup renaissance. We connect entrepreneurs with the resources they need to launch and succeed immediately. We envision a creative and inspired society in which everyone recognizes that they can define their future and is empowered to maximize their impact.

Background Statement

In 2009, the economy hit rock bottom. Jobs and businesses disappeared. Media pundits raged about the next great depression. MassChallenge co-founder and CEO John Harthorne sees the crisis as an enormous opportunity in disguise.

Technology is converging across industries and transforming the way we do business. Shifting technology has rendered many business models obsolete, and has left millions of people unemployed and thousands of offices empty. These are the very raw materials required for new business generation, and technological advancement is also enabling whole new categories of businesses.

By investing now in innovation and entrepreneurship, we can
transform whole industries and define the next generation of economic
growth engines. The world is full of great ideas, but only a few become reality. Novice
entrepreneurs require advice, resources and funding to bring their ideas
to fruition. Currently there is a gap between the resources these
entrepreneurs need and the ability of the entrepreneurial ecosystem to
provide them.

We are addressing this gap by launching the world’s largest
accelerator program and startup competition. We use the power of
competition to create urgency, and to identify and aggregate high-impact
teams and resources. We strengthen and accelerate finalists by
providing them high-quality, personalized mentorship and by connecting
them to potential team members, advisors, customers and sponsors.

As an independent not-for-profit, we are solely motivated to support and strengthen entrepreneurs – no strings attached.

Impact Statement

MassChallenge’s top five accomplishments from this year include:
  • We accelerated 125 high-impact, high-potential startups
  • We helped award $1.1 million in cash prizes and $9+ million in in-kind benefits to the top 26 startups
  • We helped all 360 of finalists from the classes of 2010, 2011 and 2012 raise $362.5 million in funding, generate $96.1 million in revenue, and create 2,912 jobs
  • We raised $2.1 million to support the MassChallenge program, operations and prize money - more than ever before
  • We maintained a Net Promoter Score (satisfaction rating) among our 125 startups of 78.3%, higher than Apple, Amazon and Trader Joe’s

MassChallenge’s top five goals include:
  • Accelerating 125 startups in 2013 and giving out another $1.1 million in cash prizes
  • Raising $2.5 million in funding to support the MassChallenge program, operations and prize money
  • Building out a Board of Directors
  • Developing a superior website and IT infrastructure
  • Attracting another 70% increase in applications

Needs Statement

MassChallenge’s top five most pressing needs include:
  • Increased funding to support investments in technology and IT infrastructure, including our website
  • Increased funding to support additional staff
  • Increased funding to support the MassChallenge program, operations and prize money
  • Counsel with nonprofit experts on building a Board of Directors
  • Counsel with nonprofit experts to augment MassChallenge funding models with best practices developed elsewhere in the nonprofit community

CEO Statement

Every entrepreneur starts out with a vision to change the world. It isn’t easy. The distance between having a great idea and turning that idea into a company can feel enormous. It takes dedication, perseverance, and yes, a little bit of crazy.   

Our lives are forever changed by those that took a risk and put it all on the line to turn their dream into reality. Some of the world’s largest companies were started against a backdrop of skepticism and doubt. At MassChallenge, we celebrate the entrepreneur. The one that is passionate and committed to turning vision into reality.

Since MassChallenge began in 2010, we have sought to push the boundaries of what is possible for entrepreneurs. In just two years, we have become the world’s largest start-up accelerator competition with the sole purpose of helping entrepreneurs bring great ideas to the market. MassChallenge does not take an equity stake and does not impose any restrictions on the winners – there are no strings attached. As an independent, worldwide non-for-profit, we work with hundreds of early stage entrepreneurs across multiple countries to promote innovation, collaboration, and impact. Through our work, we aim to catalyze a startup renaissance. We do this by having a competition that allows anyone to enter, with any idea, from anywhere in the world. We support and strengthen high-impact teams by providing them high-quality, personalized mentorship, and by connecting them to potential team members, advisors, customers, and sponsors.

We haven’t done it alone though. Thanks to our supporters, we are proud to celebrate the tremendous growth we have achieved over the last two years, some of which can be seen on the pages of this report. We’ve had the incredible fortune to be able to leverage our competition’s resources to help startups foster innovation, expand their networks, and bring their visions to life. We’ve made lifelong friendships and partnerships, and we can’t wait to expand our global community even further. We are proud to say our 2010 graduates alone have created over 500 new jobs, or as we like to say, 500 new members of the MassChallenge family.

The last two years have been an incredible journey for all of us, and we can’t wait to shatter the limits of possibility. Our long-term vision is ambitious, but “impossible” has no meaning to us. We want to make every brilliant idea heard; to make dreams a reality. No voice is too small to change the world.

Board Chair Statement

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Geographic Area Served

City of Boston- Citywide (Indiv. neighborhoods also listed)
GREATER BOSTON REGION, MA
NATIONAL
INTERNATIONAL
STATEWIDE
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Organization Categories

  1. Community Improvement, Capacity Building - Small Business Development
  2. -
  3. -

Independent research has been conducted on this organization's theory of change or on the effectiveness of this organization's program(s)

No

Programs

MassChallenge Annual Startup Competition and Accelerator Program

MassChallenge, Inc., is a non-profit organization based in Boston’s Innovation District and devoted to the mission of helping entrepreneurs succeed. Founded in 2010, MassChallenge runs the world’s largest startup accelerator and competition program and the first to support high-impact, early-stage entrepreneurs with no strings attached. Each June, MassChallenge accepts 125 finalists from a large pool of applicants into its accelerator program. At the end of the four-month accelerator, MassChallenge awards $1 million in cash and $9 million in in-kind benefits to 26 of the world’s most high-impact, high-potential startups. Our three classes of alumni have collectively raised over $362 million in funding, generated over $96 million in revenue, and created nearly 3,000 jobs.

Budget  $2,100,000.00
Category  Community Development, General/Other
Population Served Adults
Program Short-Term Success 
Short term successes include:
  • 125 high-impact startups accelerated and matched with high-quality mentors for guidance in 2012
  • Secure commitments for $1.5 million total by 1/31/13 to fund the 2013 MassChallenge program
Program Long-Term Success  We envision a creative and inspired society in which everyone recognizes that they can define their future, and is empowered to maximize their impact. Our objectives are:
  • Promote innovation, collaboration and commercialization
  • Address the seed-stage investment gap, empowering novice entrepreneurs
  • Provide educational opportunities for entrepreneurs
  • Showcase entrepreneurship assets and infrastructure locally and nationally
Program Success Monitored By  --
Examples of Program Success 
Since April 2010, the 360 startups accelerated by MassChallenge have accomplished the following:
  • Raised $362.5 million in funding
  • Generated $96.1 million in revenue
  • Created 2,912 jobs
MassChallenge has also mainted a Net Promoter Score (satisfaction rating) of higher than 75%, roughly in line with other top brands in the U.S., including Apple and Trader Joe's.

CEO/Executive Director/Board Comments

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Management


CEO/Executive Director Mr John Harthorne
CEO Term Start May 2009
CEO Email [email protected]
CEO Experience John received his MBA from the MIT Sloan School of Management in 2007. While at school, John received Grand Prize in the 2007 MIT $100K Business Plan Competition and received the 2007 Patrick J. McGovern Award for impact on quality and visibility of entrepreneurship at MIT. He also led the 10th annual MIT Global Startup Workshop (GSW) held in Trondheim, Norway.
In September 2011, the Boston Business Journal identified John as one of Boston's 50 Most Influential Business Leaders, alongside the CEOs of Akamai Technologies, Blue Cross Blue Shield and the Boston Celtics.
John is a life-long Massachusetts resident and an avid Red Sox fan. He currently lives in Somerville with his wife Natalia, their 6-year old son Max and their 2-year old girl Yulia.
Co-CEO --
Co-CEO Term Start --
Co-CEO Email --
Co-CEO Experience --

Former CEOs and Terms

Name Start End
-- -- --

Senior Staff

Name Title Experience/Biography
Mr Akhil Nigam President --

Awards

Award Awarding Organization Year
-- -- --

Affiliations

Affiliation Year
-- --
Member of state association of nonprofits? No
Name of state association --

External Assessments and Accreditations

External Assessment or Accreditation Year
-- --

Collaborations

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CEO/Executive Director/Board Comments

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Foundation Comments

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Staff Information

Number of Full Time Staff 11
Number of Part Time Staff 3
Number of Volunteers 0
Number of Contract Staff 0
Staff Retention Rate % --

Staff Demographics

Ethnicity African American/Black: 0
Asian American/Pacific Islander: 0
Caucasian: 0
Hispanic/Latino: 0
Native American/American Indian: 0
Other: 14
Other (if specified): --
Gender Female: 0
Male: 0
Not Specified 14

Plans & Policies

Organization has Fundraising Plan? No
Organization has Strategic Plan? No
Years Strategic Plan Considers --
Management Succession Plan --
Business Continuity of Operations Plan --
Organization Policies And Procedures Under Development
Nondiscrimination Policy Yes
Whistle Blower Policy No
Document Destruction Policy --
Directors and Officers Insurance Policy --
State Charitable Solicitations Permit --
State Registration --

Risk Management Provisions

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Reporting and Evaluations

Management Reports to Board? Yes
CEO Formal Evaluation and Frequency Yes Annually
Senior Management Formal Evaluation and Frequency Yes Annually
Non Management Formal Evaluation and Frequency Yes Annually

Governance


Board Chair Mr. John Harthorne
Board Chair Company Affiliation MassChallenge, Inc.
Board Chair Term June 2009 -
Board Co-Chair --
Board Co-Chair Company Affiliation --
Board Co-Chair Term -

Board Members

Name Company Affiliations Status
Mr. John Harthorne MassChallenge Voting
Mr. Akhil Nigam MassChallenge Voting

Constituent Board Members

Name Company Affiliations Status
-- -- --

Youth Board Members

Name Company Affiliations Status
-- -- --

Advisory Board Members

Name Company Affiliations Status
Sam Bastia Verizon Enterprise Solutions NonVoting
Sean Belka Fidelity Center for Applied Technology NonVoting
Greg Bialecki Massachusetts Secretary of Housing and Economic Development NonVoting
Josh Boger Founder, Vertex Pharmaceuticals Voting
Desh Deshpande Founder, Sycamore Networks NonVoting
Sara Spalding Microsoft --

Board Demographics

Ethnicity African American/Black: 0
Asian American/Pacific Islander: 1
Caucasian: 1
Hispanic/Latino: 0
Native American/American Indian: 0
Other: 0
Other (if specified): --
Gender Female: 0
Male: 2
Not Specified 0

Board Information

Board Term Lengths --
Board Term Limits --
Board Meeting Attendance % --
Written Board Selection Criteria Under Development
Written Conflict Of Interest Policy Under Development
Percentage of Monetary Contributions 0%
Percentage of In-Kind Contributions --
Constituency Includes Client Representation No

Standing Committees

    --

CEO/Executive Director/Board Comments

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Foundation Comments

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Financials


Revenue vs. Expense ($000s)

Expense Breakdown 2015 (%)

Expense Breakdown 2014 (%)

Expense Breakdown 2013 (%)

Fiscal Year Jan 01, 2014 to Dec 31, 2014
Projected Income $5,000,000.00
Projected Expense $4,600,000.00
Form 990s

2014 Form 990

2013 Form 990

2012 Form 990

2011 Form 990

2010 Form 990

2009 Form 990 (6 months)

Audit Documents

2015 Audit

2014 Audit

2013 Audit

2012 Audit

2011 Audit

2010 Audit

2009 Review (6 months)

IRS Letter of Exemption

IRS Letter of Determination

Prior Three Years Total Revenue and Expense Totals

Fiscal Year 2015 2014 2013
Total Revenue $7,133,444 $5,527,695 $5,003,001
Total Expenses $7,819,464 $6,464,159 $4,774,038

Prior Three Years Revenue Sources

Fiscal Year 2015 2014 2013
Foundation and
Corporation Contributions
-- -- --
Government Contributions $0 $0 $0
    Federal -- -- --
    State -- -- --
    Local -- -- --
    Unspecified -- -- --
Individual Contributions $5,756,838 $4,464,934 $3,282,327
Indirect Public Support -- -- --
Earned Revenue -- $30,032 $179,278
Investment Income, Net of Losses -- -- --
Membership Dues -- -- --
Special Events -- -- --
Revenue In-Kind $1,356,436 $1,032,729 $1,541,396
Other $20,170 -- --

Prior Three Years Expense Allocations

Fiscal Year 2015 2014 2013
Program Expense $5,862,511 $4,963,340 $3,843,504
Administration Expense $953,188 $592,291 $532,231
Fundraising Expense $1,003,765 $908,528 $398,303
Payments to Affiliates -- -- --
Total Revenue/Total Expenses 0.91 0.86 1.05
Program Expense/Total Expenses 75% 77% 81%
Fundraising Expense/Contributed Revenue 17% 20% 12%

Prior Three Years Assets and Liabilities

Fiscal Year 2015 2014 2013
Total Assets $1,396,914 $2,071,891 $1,487,492
Current Assets $1,179,162 $1,875,343 $1,234,656
Long-Term Liabilities $0 $0 $0
Current Liabilities $2,556,026 $2,544,983 $1,024,120
Total Net Assets $-1,159,112 $-473,092 $463,372

Prior Three Years Top Three Funding Sources

Fiscal Year 2015 2014 2013
1st (Source and Amount) -- --
-- --
-- --
2nd (Source and Amount) -- --
-- --
-- --
3rd (Source and Amount) -- --
-- --
-- --

Financial Planning

Endowment Value --
Spending Policy --
Percentage(If selected) --
Credit Line No
Reserve Fund No
How many months does reserve cover? --

Capital Campaign

Are you currently in a Capital Campaign? Yes
Capital Campaign Purpose --
Campaign Goal --
Capital Campaign Dates -
Capital Campaign Raised-to-Date Amount --
Capital Campaign Anticipated in Next 5 Years? --

Short Term Solvency

Fiscal Year 2015 2014 2013
Current Ratio: Current Assets/Current Liabilities 0.46 0.74 1.21

Long Term Solvency

Fiscal Year 2015 2014 2013
Long-term Liabilities/Total Assets 0% 0% 0%

CEO/Executive Director/Board Comments

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Foundation Comments

Financial summary data in the charts and graphs above is per the organization's audited financials. Contributions from foundations and corporations are listed under individuals when the breakout was not available.
 
Please note, for Fiscal Year 2009 a 6 month Financial Review document and a Form 990 document are posted above for your reference. 
 
 

Documents


Other Documents

No Other Documents currently available.

Impact

The Impact tab is a section on the Giving Common added in October 2013; as such the majority of nonprofits have not yet had the chance to complete this voluntary section. The purpose of the Impact section is to ask five deceptively simple questions that require reflection and promote communication about what really matters – results. The goal is to encourage strategic thinking about how a nonprofit will achieve its goals. The following Impact questions are being completed by nonprofits slowly, thoughtfully and at the right time for their respective organizations to ensure the most accurate information possible.


1. What is your organization aiming to accomplish?

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2. What are your strategies for making this happen?

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3. What are your organization’s capabilities for doing this?

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4. How will your organization know if you are making progress?

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5. What have and haven’t you accomplished so far?

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