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.
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.
Provides $25K–$500K to nonprofits for equipment/software
Ideal for early-stage tech labs or demo facilities
Funding repaid via a percentage of revenue—great for early-stage deep-tech firms
Grants to CDFIs that then lend to small tech/biotech businesses
Builds local lending capacity
Award $100K to SBIR Phase II recipients
$41.7 million granted to 141 companies since 2012 mass-ventures.com
State provides up to $750K for translational research initiatives in biosciences, women's health, and advanced therapies withum.com
Finances 100% of telecom and lab equipment costs ($25K–250K+)
Equipment and loan guarantees to support manufacturers and exporters, including laboratory service providers
State-run VC fund investing in early-stage deep-tech and biotech, offering seed capital and commercialization help
Iconic VC firms based in Cambridge, launching $450M funds for biotech seed-stage investment
Zero-equity accelerator for early-stage startups
Shared lab space and non-dilutive support for biotech founders
Assess needs: R&D, lab equipment, talent, facility
Identify funding mix: grants, loans, VC, accelerator
Qualify for grant/loan programs (SBIR & CDFI)
Prepare technical plan, financial projections
Apply for grants (START, R&D calls) and loans
Secure VC or accelerator entry
Deploy funds and track milestones toward commercialization
Offer micro and small loans up to $100K with technical support
Lending $100K–500K to NE Massachusetts businesses for capex, receivables, and equity investments
| Funding Type | Pros | Cons |
|---|---|---|
| Grants (START, R&D) | Non-dilutive, scale R&D, high impact | Highly competitive, limited winners |
| Equipment Loans | 100% coverage, long terms | Strict use-cases (equipment only) |
| Revenue-based Loans | No equity, aligned with growth | May strain cash flow in early revenue periods |
| CDFI/CDFI-backed | Accessible size, coaching included | Limited funding pools, local eligibility |
| VC & Accelerator | High-scale capital, network access | Requires equity, diligence, fit |
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
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
Massachusetts offers a robust funding landscape:
Grants for early R&D
Loans and equipment financing for infrastructure
Revenue-based funding to link payment with performance
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.
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.