Funding is not dead, Massachussetts startups keep growing

NPA Insights, July 2024

Hi all!

I hope everyone is enjoying this wonderful summer break!

Have you taken an Uber/Lyft ride lately or gotten your food delivered this way? The numbers on the gig economy in Massachusetts show a clear consumer behavior trend with ride-sharing and food deliveries. In our poll, please tell us your thoughts about the CA Supreme Court ruling that drivers will remain independent contractors.

Massachusetts' reliance on the gig economy grows. Massachusetts is reevaluating its relationship with gig economy companies, but the impact app-based services have had on consumers' way of life is undeniable:

• There were 144.3 million rides and deliveries in Massachusetts in 2023, a 70% increase over the pandemic year of 2021

• Ride-hailing apps accounted for nearly 80 million rides in 2023, more than double the 2021 number.

The Manufacturing PMI Index contracted for the third consecutive month in June and registered 48.5%, down 0.2 percentage points compared to May’s reading of 48.7%

The New Orders and the Prices index are both in contraction territory.

The Supplier Deliveries Index remained in “faster” territory.

The European Union has announced that it has imposed extra duties of up to 37.6 percent on imports of electric vehicles (EVs) made in China, despite Beijing’s warnings that the move would unleash a trade war.

The Commission, the EU’s executive, launched an investigation last year into Chinese EV manufacturers on whether state subsidies were unfairly undercutting European carmakers.

Boston startups raised around $397.2 million in VC funding in June — a significant decline from May’s $698 million.

First 2024 Boston unicorn: Creatio, a 10-year-old software company, has announced a $200 million capital raise at a $1.2 billion pre-money valuation.

Desktop Metal is getting acquired by Nano Dimension Ltd. The 3D printing deal price will ultimately range from $135 million to $183 million.

Metalenz, a former Mass Innovation Network graduate, is behind the next generation of smartphone lenses.  The technology not only verifies users' identities but, according to its co-founder, will eventually detect signs of poor air quality and dehydration through facial recognition.

Vecna Robotics, the leader in flexible material handling automation solutions, announced the close of its Series C round at $100 million to fund new workflow-specific innovations.

Massachusetts Clean Energy Center (MassCEC) announced $2.5 million in funding for 18 clean energy and climate tech companies and researchers. The awardees are listed here.

Save the date for RoboBoston!

This year’s 7th Annual Robot Block Party will include robot demonstrations, hands-on interactions with robots, games, and more. Get your tickets here.

In our June survey, we asked which items are more important to look for when sourcing engineering support.

The majority of our respondents said that technical expertise (19.8%) and cost-effectiveness (14.0%) are the most important items.

Given the significant growth in gig economy jobs and the ongoing discussion if drivers should be treated more like employees and receive benefits or if the drivers should remain classified as independent contractors without receiving company benefits, we'd like to know:



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