New York Venture Capital Knocks off Massachusetts as #2 Spot for Tech VC

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While our post on Massachusetts vs. New York venture capital post highlighted that NY is winning on the internet front, how do the two states compare on aggregate technology venture deals and dollars?  We put the data together along with a pretty telling graph, and again, the picture is less than pretty for Massachusetts.  (Thx to Galen Moore whose question spurred this analysis.  You can follow him on twitter here)

This analysis covers the larger tech landscape in both states.  In CB Insights taxonomy, that means we’re including internet, mobile, software (non-internet/mobile), computer hardware and electronics (which includes semiconductors for example) to arrive at the figures below.

Over the last five quarters (Q4 2009 to Q4 2010), Massachusetts has had 207 deals while NY has had 208.  On a funding dollars basis, Massachusetts came in at $1.21B while New York came in at $1.22B.  That is as close as it gets so anointing New York as #2 for such marginal differences is really splitting hairs.

BUT, we think the graph below is worth a proverbial thousand words and shows pretty starkly the two markets are trending in very different directions.

New York vs. Massachussetts technology venture capital

If you’d like to see the tech companies who received funding in NY and Mass over the last five quarters?

  1. Login to CB Insights here (or sign up for free here) and goto the “Deal Search” tab
  2. On Deal Search, select all the round/series of investment you  want to see (Series A, B, C, etc)
  3. Select the period (October 2009 to December 2010)
  4. Specify New York and hit submit

Four easy steps and you’ll get a list of the companies receiving funding in NY over that time period.  Do the same for Massachusetts and you’ll get those companies as well.

  • New York Venture Capital for Internet Companies Tops Massachusetts said,

    [...] Massachusetts still retains its title as the #2 destination for venture capital deals and dollars and as the graphs below illustrate, it is also a significantly more diverse place for venture dollars and deals than NY in terms of the sectors and industries receiving capital.  BUT, the NY and Massachusetts five-quarter trend does show that NY is starting to credibly close the gap between itself and it’s northern brother, Massachusetts and that both states’ funding and deal trends are traveling in different directions.  (To see a comparison of NY vs. Mass in aggregate tech VC deals and funding, go here) [...]

  • Quarterly Venture Capital Report - Q4 2010 said,

    [...] Over the last five quarters, NY has seen 208 tech deals vs. 207 for Massachusetts.  Funding to NY tech companies came in at $1.22B vs. $1.21B for Massachusetts.  The margin of victory for NY is ever so slight, but most striking is the trend for both states which are going in very different directions.  (More on this trend: NY Venture Capital Overtakes Massachusetts) [...]

  • william sweeney said,

    Be also useful to see where the venture dollars originated. NY VC’s versus Boston VC’s versus California Vc’s/. Also, like most things, the time period of the trending is important- is 5 quarters right, who knows.

  • CB Insights said,

    William -

    Thanks for the comment. Great points as well and suggestions for analysis. We’ll def look at where the money is coming from as a followup analysis at some point. As for the five quarter trend, who knows is absolutely right. One thing worth noting once you go back past five quarters is that you start hitting the VC data from the height of the recession which also introduces its own uncertainty as those quarters were outliers (or at least one hopes).

    I think the largest take-away is that the two markets of NY and Massachusetts appear based on recent data to have different trajectories. The “hype” associated with NYC also is notable and powerful esp if the city becomes a market that VCs feel they must have a presence in. Of course, another five quarters will tell us if this was sustainable or a temporary blip. We’ll continue to track and report on this.

    Thanks again for the comment.

    Best,
    Anand

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