FinTech, MedTech, InsurTech – the Spaces That Matter Most to the East Coast

September 23, 2019 | Celen Ebru Paytoncular

East Coast Medtech, medtech boston, medical technology,

The East Coast is hard on the heels of Silicon Valley in terms of technological innovation. Here are the fields where the region is flourishing...

Why the East Coast?

America's techie East Coast is a fast-growing West Coast competitor. Data from the Center for an Urban Future reveals that while New York was small in terms of tech employees back in 2014, the rate of growth was much higher than that of the San Francisco Bay Area. The city had 117,000 tech workers employed, a 71% increase in comparison to a decade prior, whereas Silicon Valley and San Francisco's figure of approximately 300,000 has barely changed in the same time period.

With eight out of ten top US universities located on the East Coast, this includes all Ivy League colleges. Focusing in on Boston, the city boasts the highest amount of STEM graduates in the US. The talent pool is leading reason that firms such as General Electric are announcing plans to move their headquarters from Connecticut to Massachusetts. In 2016, for instance, one out of every 14 jobs in the state was a tech job

In this age of digital transformation, the Valley techie attitude of act now, apologise (or get sued) later won't last and businesses are realising this. Uniting the greatness of America's top tech employees with the professionalism of the East Coast is the future.

So, here are three sectors in which innovation is happening right now on the East Coast.

East Coast Fintech, fintech, boston, financial technology,

FinTech in the East Coast

Technology is disrupting the financial services sector across the East Coast, with Boston, in particular, swiftly becoming a vibrant FinTech startup hub. Entrepreneurs are creating new ways for legacy financial firms to embrace digital transformation in areas like cryptocurrency, trading, personal finance, investment management and lending.

Boston's financial services sector employs over 100,000 workers and is home to some of America's top organisations. This includes Fidelity International, Wellington Management, State Street Corporation, MassMutual, John Hancock, Liberty Mutual – the list goes on!

Located between Boston's Financial and Innovation District is DCU's FinTech Innovation Center. The cooperative boasts eight promising start-ups each year in its graduating cohort. Across the city, other start-ups are flourishing...

Startup success stories include Kensho (whose $50 million Series B funding sent financial news into a frenzy), CircleQuantopianEverQuote and Toast all raised over $20 million in rounds in 2016. According to Built in Boston, dedicated to breaking Boston’s FinTech news and events, funding for FinTech has amounted to $409.91 million, across 56 startup companies, and we can expect that number to rise in the very near future.

 

MedTech in the East Coast

MedTech is another particularly successful division in the East Coast, with the number of exports of medical devices being far greater than all other U.S states and has seen a massive growth of 7.7% to $6.1 billion in 2018 according to the State of the Massachusetts MedTech Industry Report. 
 
The East Coast’s newly forged connections with Ireland means that we can expect an astronomical growth in the coming years. Ireland is considered a global hub for the life-science industry and is home to the European headquarters of several multinational companies, including Abbott, Boston Scientific and Johnson & Johnson. It is currently the largest MedTech employer in Europe per capita.

 

Plans for the two hubs to forge connections means we can expect to see rapid development in the already well-established MedTech sector in the East Coast, especially with support from Irish government agency Enterprise Ireland. Enterprise’s participation in the EU programme Horizon 2020 - which has run since 2014 with a budget in excess of €70 billion - will aid the East Coast in identifying opportunities with Irish suppliers, as the programme provides MedTech startups with access to global markets through their network.

 

InsurTech in the East Coast

The insurance industry has remained unchanged for decades, meaning consumers had to settle for costly produce - until the rise of InsurTech. The disruption to the industry has meant that insurance is more reflective of and tailored to consumers’ needs and the process of obtaining insurance has been streamlined.
 
Although InsurTech may be deemed as a threat to traditional insurance companies, this is not entirely true; many start-ups aim to simply modernise the processes these traditional companies use rather than to replace them entirely, achieving this by using technology to benefit the agents. One of these such start-ups is Veruna, a Boston-based InsurTech company founded in 2015 that offers a cloud-based agency management system for agents, built on the SalesForce platform. Veruna announced earlier this year that they were successful in completing a $6 million Series A funding round, which included the participation of two highly established insurance carriers.

 

East Coast Insurtech, insurtech, boston, insurance technology,


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