5 Common Misconceptions about MassChallenge

1. MassChallenge is a government program. FALSE
Actually, MassChallenge is an independent non-profit that is using both public and private funding. Our initial funding came from the Mass Tech Collaborative’s John Adams Innovation Institute, the Deshpande Foundation, the Kauffman Foundation, and Microsoft. We will announce more partnerships and support soon … please contact us if you are interested in joining this exclusive group.
2. MassChallenge is a venture fund. FALSE
We had originally proposed including a MassChallenge investment fund alongside our other offerings because we thought this would help promote other investments and ultimately benefit entrepreneurs. Having spoken with thousands of stakeholders, including some of the areas biggest investors and top lawyers, we realized that we will be more effective without a separate investment fund, especially since a fund would significantly complicate our status as a non-profit. So, no, we do not offer investments directly — instead we provide grants and we partner with dozens of outside investors eager to deploy their capital in high-growth firms.
3. MassChallenge has lots of strings attached and requires winners to headquarter in Massachusetts. FALSE
Anyone can enter MassChallenge, from anywhere on the planet, with any idea. There are no strings attached — you don’t have to give up any equity, and you can headquarter your company wherever you like. We love Massachusetts. It is an amazing place to launch your business, and we will certainly help you get set up here if that’s what you want, but there are no requirements to headquarter or operate in Massachusetts following the competition. The only entry requirement is that you promise to engage in the competition processes up until the final ceremony — that requires you to be physically present for 2-3 months over the late Summer / early Fall. We’ll do our best to help you get situated in Massachusetts.
4. MassChallenge is “just another business plan competition”. FALSE
We partner and collaborate with lots of university-based business plan competitions, including the MIT $100K, but we are later stage than these competitions. Our goal is to produce fundable startups that launch and succeed either during or immediately following our competition. We are a startup creation machine, not an educational event. If you were a recent finalist or winner of a university based competition, you are likely a strong potential entrant for MassChallenge. You could also be a professional who has recently left work and is looking to realize a life-long dream by launching a startup based on your extensive knowledge and experience.
5. MassChallenge doesn’t need any volunteers. FALSE
Actually, this wasn’t a misconception. We’re just using this opportunity to remind you that we encourage all types of volunteers to help us empower entrepreneurs and catalyze a startup renaissance in Massachusetts and beyond. Please sign up for our newsletter and social media feeds if you are interested — we’ll be making an announcement soon about how you can get involved. Thanks!
If you have any other questions please join us for a MassChallenge Info Session either
Today at 12:30pm in Cambridge Innovation Center 5th Floor Training Room OR
Tuesday, February 16th at 5:30pm in the Venture Development Center at UMASS Boston OR
Tuesday, February 23rd at 12:30pm at CIC.
We look forward to seeing you there!