Boston Tech Agenda 2017: 5 Things to Watch For This Year
For Boston’s technology scene, 2016 was the year of GE, a new crop of local venture funds, ambitious initiatives to spark startups, another failed attempt to reform Massachusetts noncompete rules, a few billion-dollar-plus deals, and a pair of IPOs.
On a personal note, 2016 marked my first full year covering Boston tech for Xconomy. It was a trying year overall (as I’m sure it was for many of you), but it was also a rewarding and fun one. (Check out some of my favorite stories here, here, here, and here.)
So, with 2016 in the rear view mirror, what will 2017 bring for the local innovation community? Here are my top picks for what to watch for this year in Boston tech:
1. Will a new anchor tech company or sector emerge? Boston has several pillar companies in software and related sectors—such as Wayfair (NYSE: W) in e-commerce, HubSpot (NYSE: HUBS) in marketing software, iRobot (NASDAQ: IRBT) in robotics, and now of course GE (NYSE: GE) in, well, a bunch of industries. Who will become the next big Boston tech company to gather buzz and talent, and which sector will that firm come from? Or will GE quickly dominate the scene?
I’d argue artificial intelligence, cybersecurity, and digital health are the ripest sectors, given the region’s strengths and momentum in each of those fields. Some local observers say the Boston area is searching for an identity, outside of its status as the world’s leading life sciences hub. Perhaps that tech identity will start to crystallize in 2017.
2. Will we see more than two tech IPOs this year? Acacia Communications (NASDAQ: ACIA) and Everbridge (NASDAQ: EVBG) were the only two Boston-area tech companies to go public in 2016 (there were plenty of life science IPOs). That’s not a lot, but it’s one more than in 2015, and it came amid a continued weak market for tech IPOs. (It’s also worth noting that Acacia’s stock has performed the best of all the companies nationwide that went public last year, according to the Boston Business Journal, which cited Renaissance Capital.)
And, of course, there are sure to be plenty of mergers and acquisitions involving local companies. My money is on more local deal-making in cybersecurity in particular, partly because of all the industry noise, competition, and fear of cyber attacks.
3. What impact will the new local venture funds have? There are several new tech-focused VC firms in town, each taking a different approach to investing or focusing on a specific sector or sectors. The new players include Pillar, Underscore.VC, and Glasswing Ventures, and it should be interesting to see how they affect startups and more established venture capital firms in the area.
Speaking of those older local VCs, … Next Page »