Audit of MassVentures (June 17, 2025)

This is a state performance audit of MassVentures, a quasi-public Massachusetts organization that supports startup companies, covering July 1, 2021 through June 30, 2023.

“In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor has conducted a performance audit of certain activities of MassVentures (MV) for the period July 1, 2021 through June 30, 2023.”

Auditors checked whether MassVentures filed required annual reports, monitored investments to meet legal requirements, and created a formal strategic plan after a prior audit recommendation.

“In this performance audit, we reviewed and assessed selected management activities of MV, including whether (1) MV submitted annual reports in accordance with the guidelines set by Section 6 of Chapter 40G of the General Laws, (2) whether MV monitored its investments to ensure that it met the requirements of Section 4(9)(2)(a) of Chapter 40G of the General Laws, and (3) whether MV established a formal strategic plan as recommended in our prior audit (Audit No. 2019-0136-3A).”

Late or incomplete reports make it harder for the Legislature to oversee how MassVentures uses its authority and whether its investments match its public mission.

“Without this oversight, MV is at greater risk of inappropriate investments in companies that do not align with its mission.”

MassVentures exists to support Massachusetts startups and job growth, so its reporting affects public visibility into a program meant to help the state economy.

“Chapter 497 of the Acts of 1978 established the Massachusetts Technology Development Corporation, now MassVentures (MV), as a quasi-public corporation to provide financial assistance to startup companies in Massachusetts, with the primary purpose of increasing employment in the state.”

MassVentures needs to file its annual reports on time and include all required details in them.

“MV should ensure that all investees provide all of the information required to prepare the annual report, and MV should include all of the required information in its annual report.”

The auditor plans to check back on MassVentures’ progress, especially around adding clearer economic target area information to future annual reports.

“As part of our post-audit review process, we will follow up on this matter in approximately six months.”

This is mainly an accountability issue: lawmakers may not get the information they need to review MassVentures’ work if reports are late or incomplete.

“If the annual report does not contain information about the activities of MV investees, then the Legislature will not have the information necessary to adequately review MV activities for the preceding year.”

An “investee” is a company MassVentures invested in; an “economic target area” is a place in Massachusetts identified as needing economic development help.

“Section 3G of Chapter 23A of the General Laws defines an economic target area as an area of Massachusetts that could benefit from economic development based on the area’s unemployment rate, median income, and/or economic need.”