[Hidden-tech] MassMutual commits $5 million to invest in small business, $1.5 million to mentor and accelerate start-ups

[Rich Roth]

In case you have not seen this

http://www.masslive.com/business-news/index.ssf/2014/06/massmutual_commits_5_million_to_invest_i.html


masslive.com


  MassMutual commits $5 million to invest in small business, $1.5
  million to mentor and accelerate start-ups

*Jim Kinney | jkinney at repub.com * By *Jim Kinney | jkinney at repub.com *
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on June 26, 2014 at 3:58 PM, updated June 26, 2014 at 6:22 PM

SPRINGFIELD --- *MassMutual,* founded in 1851 and one of Springfield's 
oldest businesses, committed a total of $6.5 million Thursday to help 
out the region's newest start-ups.

"It's about having an idea that can grow," said MassMutual President and 
CEO Roger W. Crandall on Thursday. "Who knows how many jobs it can grow: 
5, 50, 500. But these are the businesses that can grow and add jobs."

Crandall made the announcement Thursday during the *Western 
Massachusetts Developers Conference*, an event that drew more than 350 
to the Naismith Memorial Basketball Hall of Fame to hear about 
development opportunities in the region.

The $6.5 million is part of a two-part plan to address the most pressing 
needs felt by entrepreneurs: access to capital and access to advice. 
MassMutual has granted $1.5 million to fund a  entrepreneurial  
accelerator run by*Valley Venture Mentors* in Springfield's *Tower 
Square*. The accelerator is modeled on MassChallange, a mentoring space 
and business competition in Boston. Some of the $1.5 million wil also go 
to DevelopSpringfield, a non-profit organization dedicated to driving 
development in Springfield which will build out a physical location for 
the Accelerator.

MassMutual also is providing $5 million for the Springfield Venture 
Fund, a source of investment capital for new businesses.

*MassMutual CEO Roger Crandall announces Springfield venture fund* At 
the Western Mass Developers Conference on Thursday, Massachusetts Mutual 
Life Insurance Company CEO Roger Crandall announced that they will fund 
"high potential" startups through a $5 million Springfield Venture Fund. 
Additionally, the company will invest $1.5 million over the next three 
years to support the creation of a startup accelerator by Valley Venture 
Mentors.

"We will be looking for business plans, for things that can make 
money,"Crandall said. "They say money follows the idea. But sometimes it 
can be hard to get that first investment. This is going to shovel fuel 
on the fire."

Often, when money is available, Pioneer Valley start-ups have to go to 
Boston or beyond to find those investors, said Paul Silva, executive 
director of *Valley Venture Mentors*. But going there for funding often 
means relocating the entire business.

"If they have to go to Boston for the funding, often there are strings 
attached. You have to go to where the money is," he said.

Crandall said the MassMutual investments will help keep these 
entrepreneurs here, close to the markets in New York City or Boston but 
in a place where office space salaries are affordable.

"Boston is expensive. You want to buy a house? You want to park your 
car?" he said.

He said  that it will be a competition. MassMutual will look for 
business ideas that have a good chance of growing and succeeding.

"That doesn't mean everyone will succeed. The vast majority will fail. 
That's the way it works," Crandall said.

The investments will be made over the next five years. Crandall doesn't 
yet know how many companies will get funding, but he hopes to help out a 
number of companies starting almost immediately.

The Valley Venture Mentors space will be open in January 2015, said 
Scott Foster, president and director for the organization. They'll stay 
for four months in a collaborative workspace getting advice from experts 
and honing their ideas. At the end, they will compete for a total of 
$200,000 in grants.

Those grants, two for $50,000 and four for $25,000, are separate from 
the MassMutual Springfield investment Fund, Foster said. He also expects 
an additional $1 million in funding from other sources, but that deal is 
not yet final.

MassMutual is donating the space in Tower Square. It is the former Mad 
Maggies's billiard hall on the first floor.

"So it will be on the first floor and public and accessible," Foster said.

The space will serve as cooperative work space and as a place for 
entrepreneurs to gather and swap ideas.

Valley Venture Mentors works with a variety of companies, Foster said. 
Many are high tech, but past members have included a company that 
procures environmentally and socially responsible wedding gowns.

"Or a jam company, from the kitchen to selling at Whole Foods," Foster said.

© 2014 masslive.com. All rights reserved.

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