New York is one of the top markets for tech funding in the United States, with local startups raising over $20B across 3,800 deals since 2009. Deal activity has increased every year since 2009, reaching 890 deals in 2014. Funding is on track to reach a 7-year high in 2015, with over $3.8B in funding already this year.
On a quarterly basis, 7 of the last 8 quarters have topped $1B in total funding for New York tech startups. Deal activity has kept pace, with 9 of the last 10 quarters topping 200 deals. The last four quarters, including Q2’15, saw a combined $6.7B in funding, 49% more than the previous four quarters. Overall, 2014 deals and dollars have grown 305% and 483%, respectively, versus 2009.
*The chart above shows deals and dollars through June 5, 2015
NY-based tech exits have also picked up, as 2014 saw the highest exit total of the past six years. The exits have largely been driven by M&A. However, 2014 did reach a six-year high for IPOs with five, including those of OnDeck Capital, Varonis Systems, and others.
There has been at least one New York-based, VC-backed tech exit at a $1B+ valuation in each of the past three years. Etsy’s IPO in April 2015 at a valuation of $1.7B was the largest ever for a VC-backed New York-based tech company. OnDeck Capital went public in 2014. Tumblr was acquired by Yahoo for $1.1B in 2013.
When it comes to activity, no VC has been more active in New York’s tech scene than Lerer Hippeau Ventures. LHV has invested in over 100 New York-based tech companies since 2009, including notable investments in BuzzFeed and Warby Parker. SV Angel and BoxGroup rounded out the top 3 rankings with investments in over 70 New York-based tech companies each since 2009.
|1||Lerer Hippeau Ventures||9||FirstMark Capital|
|3||SV Angel||12||Spark Capital|
|4||RRE Ventures||14||Thrive Capital|
|5||Founder Collective||15||Slow Ventures|
|6||First Round Capital||16||Union Square Ventures|
|7||Softbank Capital||17||General Catalyst Partners|
|8||Social Starts||18||Contour Venture Partners|
|9||500 Startups||18||IA Ventures|
|9||Great Oaks Venture Capital||18||Primary Venture Partners|