On April 15th, four different New York-based tech companies including Betterment, Paperless Post, LearnVest and Squarespace announced $25M+ financing rounds totaling $124M in aggregate funding. The sudden one-day surge in large fundings comes after a number of similarly large NY-based tech deals in Q1 2014 to companies including Digital Ocean, Integral Ad Science and Kaltura. Erin Griffith of Fortune, perhaps, summed it up best with this tweet:
$40m for squarespace. what NYC startup is NOT raising a huge round right now?
— Erin Griffith (@eringriffith) April 15, 2014
So we wondered whether New York’s tech ecosystem is reaching an inflection point of large ($25M+) tech VC financings by looking at CB Insights data over the past five years. And based on deal totals, $25M+ deals in NY tech appear on track to hit the highest total in over five years.
In 2013, there were 29 VC financing deals to New York tech companies totaling $25M or higher, the highest mark in four years and more than 7 times the amount in 2009. Notable large NY tech deals last year included Fab.com’s $165M Series D, Quirky’s $79M Series D. and MongoDB’s $150M Series F.
As the chart below highlights, there have already been 15 VC financing deals to New York tech companies totaling $25M or higher in the first 3.5 months of the year, including most recently Birchbox, which secured a $60M Series B led by hedge fund Viking Global Investors. And if the first couple months of the year are any indication, 2014 should set a new high for NY for $25 million+ financings.
The good news in this for NY is that a town that has historically had a strong early stage investment scene (Seed & Series A) also seems to be coming into its own for mid- and late-stage funding and the larger checks those bring.
Note: Data in the brief is as of April 22, 2014.
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