Funding for Massachusetts Tech and Biotech Companies

Massachusetts is a global epicenter for technology and biotech innovation. Home to top universities, venture capital, and world-class incubators like LabCentral and Cambridge Innovation Center, the state is a powerhouse—but growing and scaling still require strategic funding solutions.

This guide explores how Massachusetts tech and biotech companies can tap into loans, grants, venture capital, and state programs to accelerate growth and commercial success.

💡 Why Funding Matters in MA Tech & Biotech

Massachusetts' innovation ecosystem is strong:

• Cambridge and Boston raised over $3.7 billion in biotech VC in 2022 

• The sector employs 100,000+ with high average wages 

But development costs are steep: labs, clinical trials, talent, facilities, and regulatory hurdles demand diverse and layered funding strategies.

1. Startup Loans & Loan Guarantees

👉 MassDevelopment “TechDollars” Loans

• Provides $25K–$500K to nonprofits for equipment/software

• Ideal for early-stage tech labs or demo facilities 

👉 MassVentures Revenue-Based Loans

• Funding repaid via a percentage of revenue—great for early-stage deep-tech firms 

👉 MGCC CDFI & Capital Match Program

• Grants to CDFIs that then lend to small tech/biotech businesses

• Builds local lending capacity 

2. Grant Programs for R&D

🎯 MassVentures START Grants

• Award $100K to SBIR Phase II recipients

• $41.7 million granted to 141 companies since 2012 mass-ventures.com

🎯 Deep-Tech R&D Grants

• State provides up to $750K for translational research initiatives in biosciences, women's health, and advanced therapies withum.com

3. Equipment & Infrastructure Loans

🧬 MassDevelopment Loans

• Finances 100% of telecom and lab equipment costs ($25K–250K+)

🏗 MassDevelopment Cash Flow & Export Loans

• Equipment and loan guarantees to support manufacturers and exporters, including laboratory service providers 

4. Venture Capital & Accelerators

🚀 MassVentures

• State-run VC fund investing in early-stage deep-tech and biotech, offering seed capital and commercialization help 

🚀 Atlas Venture & Others

• Iconic VC firms based in Cambridge, launching $450M funds for biotech seed-stage investment

🚀 MassChallenge & LabCentral

• Zero-equity accelerator for early-stage startups

• Shared lab space and non-dilutive support for biotech founders 

5. Featured Snippet: 7-Step MA Tech & Biotech Funding Plan

1. Assess needs: R&D, lab equipment, talent, facility

2. Identify funding mix: grants, loans, VC, accelerator

3. Qualify for grant/loan programs (SBIR & CDFI)

4. Prepare technical plan, financial projections

5. Apply for grants (START, R&D calls) and loans

6. Secure VC or accelerator entry

7. Deploy funds and track milestones toward commercialization

6. Local Nonprofit Lenders & CDFIs

🏦 MGCC-Backed CDFIs

• Offer micro and small loans up to $100K with technical support 

🏦 Mill Cities Community Investments

• Lending $100K–500K to NE Massachusetts businesses for capex, receivables, and equity investments

7. Pros & Cons of Each Funding Type

8. Real Massachusetts Success Story

LabCentral and START Grant

• LabCentral incubates ~125 biotech startups in Cambridge 

• A recipient of START grant scaled with $100K grant, expanded workforce, and attracted follow-on VC

9. Where to Get Help

• MassDevelopment – Loans for equipment, infrastructure, cash flow

• MassVentures – START grants & revenue-based loans

• MGCC – Loan programs, crowdfunding match, digital grants

• LabCentral, CIC, MassChallenge – Space, acceleration, community

• Local CDFIs (Mill Cities, others) – Small cap loans with support

10. Summary: Build a Multi-Layered Funding Strategy

Massachusetts offers a robust funding landscape:

1. Grants for early R&D

2. Loans and equipment financing for infrastructure

3. Revenue-based funding to link payment with performance

4. VC and accelerators for scale and commercial growth

Combining these options helps tech and biotech founders build sustainable funding paths from lab bench to market.

✅ Final Takeaway

Massachusetts tech and biotech companies should adopt a layered funding approach: leverage high-value grants, mix in equipment and revenue-based loans, and seek VC capital or accelerator support for scale. Tap state agencies, incubators, CDFIs, and VC networks to design the right capital stack for your growth journey.