Mascoma: Lone Massachusetts Company in First Quarter's Top Ten Venture Deals

The PriceWaterhouseCoopers/NVCA MoneyTree Report covering Q1 activity just came out.

Part of the news is that there was a worrisome drop in the amount of capital poured into New England companies during the first quarter.

But the other interesting tidbit comes from the list of the top ten money-raisers in the quarter: companies like Slide (developer of Facebook apps), Asthmatx (medical devices for asthma sufferers), and Infinia Corp. (Stirling engines and generators), each of which raised $50 million.

Company #10 on the list is a mysterious Brighton, MA biotech company that raised $44.99 million from firms like Atlas Venture, General Catalyst, Kleiner Perkins, and Khosla Ventures. It's the only Massachusetts company to make the list.

Though the MoneyTree survey labels the company and its business as "undisclosed," all signs point to Mascoma Corp., a company turning cellulosic materials (plant-based schtuff like wood, straw, and switchgrass) into biofuels. (This was earlier reported as a $50 million combo of equity and debt, but there's no press release on Mascoma's site.)

Interestingly, the #1 money-raiser in the quarter was another cellulosic ethanol company, Colorado-based Range Fuels, which took in an eye-popping $130 million. Range and Mascoma have one investor in common: Vinod Khosla's Khosla Ventures.

(Both Range and Mascoma are classified by MoneyTree as "biotech" firms, but it seems to me they'd fit better in the "industrial/energy" category, though they do rely on living organisms and biotech processes to make their fuel.)

Just one more video investment for General Catalyst

I was pretty sure I heard, at a recent panel I moderated, Larry Bohn of General Catalyst Partners say that the firm was done making investments in online video.

Well, maybe just one more... they've now put money into WonderHowTo.com, a Santa Monica based instructional video site. (Videos explain how to tie a Windsor knot, and also how to tie flies.)

Here's the NY Times story announcing the site's launch; it says that Cambridge-based GC is the primary backer, but doesn't disclose how much the firm put in. General Catalyst doesn't yet list WonderHowTo on its portfolio page.

Why Not Think Big?

I am really glad that people are continuing to have the conversation about what it will take to build a new generation of really big, really important companies in New England.

Last week, Atlas Venture held an event in Vermont called the New England Founding Entrepreneurs Summit on Technology. Speakers included Analog Devices CEO Jerry Fishman, Venture Hacks blogger Babak Nivi, Rich Chleboski from Evergreen Solar, and Michael Zane from Kryptonite Locks.

Xconomy founder Bob Buderi moderated a fireside chat with Fishman, and he also blogged about the discussions around what it'll take to create more Analogs (and EMCs and Akamais) here.

I'm glad Atlas is focusing on the issue; I helped organize a dinner last year on the same topic. But both the Atlas conference and our dinner on "Building Billion-Dollar Companies in the Bay State" (which featured the founders of Boston Scientific and Thermo Electron) were top-secret, invitation-only events.

I'm helping to put together a gathering for Wednesday, November 28th, in the evening, in downtown Boston. I'll be doing a fireside chat there with Michael Greeley of IDG Ventures, who also heads the New England Venture Capital Association, and Paul Maeder of Highland Capital Partners, who is on the board of the National Venture Capital Association.

There will be limited comparisons between Silicon Valley and New England - I promise. But we will discuss what the factors are that seem to compel New England companies to cash out, rather than keep on truckin'.

Our venue on the 28th is limited to 50 attendees. We're going to limit attendance to company founders/CEOs and investors (VCs, angels, etc.)

So while this event is theoretically open to anybody who is building or funding companies, we need to be selective. But please e-mail me if you think you ought to be there: kirsner at pobox.com. At the very least, I promise that we'll do an audio or video recording, and you'll hear about it when it is online.

And you don't need to be completely sold on the idea of building big, independent companies -- essential to the mix of attendees will be people who believe that a sweet acquisition price isn't necessarily a bad thing.

For some background, here's a piece I wrote in the Globe back in January, about growing oaks, not saplings.