INAUGURAL CLASS OF 111 MASSCHALLENGE STARTUPS SECURE $90M+ AND ADD 500 JOBS

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INAUGURAL CLASS OF 111 MASSCHALLENGE STARTUPS SECURE $90M+ AND ADD 500 JOBS

125 MORE STARTUPS IN ACCELERATOR NOW – FOUNDERS SEEK ECONOMIC RENAISSANCE

"However you look at it, we will need to create a lot of new high-growth businesses to revitalize the economy. MassChallenge is the world's largest and, we believe, most effective private-sector platform for accelerating the launch and success of high-growth businesses."

- John Harthorne, Founder and CEO, MassChallenge, Inc.

"Startups are a critical element of the country's long-term economic prosperity due to the significant role they play in creating jobs and growth. MassChallenge, a founding affiliate of the Startup America Partnership, is proving to be a critical asset for supporting high-growth startups."

- Scott Case, CEO, Startup America Partnership

MassChallenge Startup Competition and Accelerator

MassChallenge is a $1M global startup competition and accelerator designed to catalyze the success of high-growth, high-impact new businesses. MassChallenge is an independent non-profit and does not take equity from startups or place any restrictions on winners. The competition is open to anyone in the world, with any new startup, in any industry. There were 733 entrants from 24 countries in 2011.

"Based in the heart of Boston's Innovation District, MassChallenge is helping ensure that Boston continues to deliver revolutionary results for the benefit of the local ecosystem, the country and the rest of the world."

- Thomas M. Menino, Mayor of Boston

Impressive results from first year of MassChallenge

In the last 12 months, the 111 Finalists from the first-ever MassChallenge accelerator program have raised over $90 Million in outside funding and have created nearly 500 new jobs. MassChallenge startups represent all industries and levels of development within the early-stage spectrum and with several hundred promising young startups in the mix, Masschallenge organizers expect a significant acceleration of growth and job creation over the next 24 months. That pace will only accelerate as more alumni are created each year. Last month, Ksplice, a 2010 MassChallenge winner, was acquired by Oracle, marking the first exit of a MassChallenge-supported startup.

"Governor Patrick and Lt. Governor Murray proudly opened the 2011 MassChallenge competition during the Innovation Economy Partnership Mission to Israel, and committed $1 million to this innovative effort. From the hundreds of new jobs we’ve created to the millions in outside funding we’ve leveraged, our return on investment in MassChallenge is significant. This program shines a spotlight on the strength of our innovation economy and the robust community of innovators that call Massachusetts home.”

- Gregory Bialecki, MA Secretary of Housing and Economic Development

Next steps for MassChallenge

MassChallenge will graduate another 125 startups in 2011 while continuing to support the 111 alumni startups from 2010. The 2011 Final Ceremony will be held in Boston in late October. MassChallenge is actively exploring expansion to other physical locations around the country, including New York.

"The Blackstone Charitable Foundation is proud to sponsor and support MassChallenge, a program that is identifying and supporting some of the best entrepreneurial minds in the region. Supporting the next generation of entrepreneurs is critical to the economic growth of this country, which is why Blackstone's foundation has dedicated $50 million to create and support some of the most innovative and thoughtful approaches throughout the nation. MassChallenge is the embodiment of that effort and we look forward to great things in the years ahead."

- Amy Stursberg, Executive Director of the Blackstone Charitable Foundation

Testimonials from MassChallenge Finalists

MassChallenge-supported startups are among the most satisfied customers of any organization on the planet. Following the 2010 MassChallenge Accelerator, MassChallenge asked the 111 finalists how likely they were to recommend MassChallenge to other startups on a scale of 0-10. Nearly 80% answered 9 or 10 out of 10, and less than 1% answered 6 or lower. That results in a "Net Promoter Score" for MassChallenge of 87.3%, placing MassChallenge among the highest-rated brands in the world, slightly above Apple Computer based on 2010 data from: http://www.netpromoter.com

Below are selections of testimonials collected during surveys from the 236 startups we have accelerated over the past year. See our website for more about our 2011 class of 125 finalists.

"MassChallenge helps entrepreneurs that think big to think bigger. I thought Samanta Shoes could be a $10 million dollar business, but MassChallenge showed me how to make it into a $100 million dollar business."

- Kelvin Joseph, Founder, Samanta Shoes (MassChallenge 2010 $100K winner)

"MassChallenge is unique in that it is an accelerator/incubator program that does not take any equity in the companies it supports. For that reason, it was the only such program I considered and I have been very impressed with the caliber of the MassChallenge network and the people that have worked with Screener.co to help build the business .... Innovation and entrepreneurship are the sources of job creation and we need more MassChallenge-like programs nationally, particularly in less developed markets."

- Lenny Grover, Founder & CEO, Screener.co (MassChallenge 2011 Finalist)

"There are many people out there trying to support entrepreneurs. MassChallenge is unique in bringing the entrepreneurial mindset to that support, willing to talk to anyone, try anything, or break any traditional rules to help build the next generation of startup companies."

- Adam Rein, Founder, Alteros Energies (MassChallenge 2010 Finalist)

"Our experience with MassChallenge enabled our company to hone the core idea and package it correctly for the current fundraising environment. MassChallenge, above all, teaches entrepreneurs the language of how to communicate an idea into a fundable enterprise."

- Brigham Hyde, Founder, Relay Technology Management, Inc. (MassChallenge 2010 Finalist)

"MassChallenge has made a world of difference in every aspect of my startup. Whether it's connecting me with the right mentors, providing office space, or bringing in amazing speakers from multiple industries, I've learned so much about entrepreneurship and startups by being a finalist. MassChallenge is like the Y Combinator of the East Coast--except they don't take equity. Even though Silicon Valley gets a lot of hype for being the center of startup activity, MassChallenge has shown that Boston is a compelling and exciting choice for any startup looking to make its name known."

- Zach Hamed, Founder & CEO, Aid Aide (MassChallenge 2011 Finalist)

"MassChallenge is, without a doubt, the best program of its kind. The mentorship, learning, and marketing opportunities available through the MassChallenge program are unparalleled."

- Tim Noetzel, Founder & CEO, Pintley (MassChallenge 2011 Finalist)

Available for Media Interviews

MassChallenge founders, John Harthorne and Akhil Nigam, are available for interviews and comments, as are many of the founders of the 236 startups MassChallenge has accelerated to date. To connect with John, Akhil, MassChallenge partners, MassChallenge finalists and alumni, or for additional information on MassChallenge, please contact Jodi-Tatiana Charles at media@masschallenge.org. Learn more about MassChallenge at www.masschallenge.org.