Venture capital investment in New York ballooned in 2014, rising 53% year-over-year on 7% more deals. No one quarter drove the funding jump with NY seeing steady and strong performance throughout the year. Each of the last 3 quarters in 2014 saw venture investors put $1B or more into New York-based companies highlighting what appears to be a new normal in NY.
In total, New York companies raised $4.5B across 422 deals over the twelve months.
Using CB Insights data, here are the top sectors and stages for deal and funding activity in NY in 2014.
The data below.
New York dominated by Internet sector. Takes 6 of 10 deals
Venture-backed deals in New York skewed heavily toward tech in 2014. In fact, 63% of deals in New York went to Internet firms in 2014. Mobile saw an increased deal share for the second straight year at 19%, coming in at a solid #2 to Internet in NY.
Funding followed deals as 2014 saw 67% of venture capital dollars in New York go to the Internet sector, followed by Mobile & Telecom at 9% of funding share. Business Products & Services were buoyed by a combined $512M in funding to co-working space WeWork.
Seed deals up. Series A declines for 3rd straight year.
Seed deal share grew from 34% to 40% of all New York VC deals in 2014. Series A deal share decreased for the third straight year, falling from 31% in 2012 to 28% in 2013 and reaching just 26% in 2014. Series C deal share dropped from 11% in 2013 to 7% in 2014.
With huge deals including Flatiron Health in 2014, Series B jumped to a 32% funding share for the year. Series E+ funding share saw modest growth to 19% funding share behind large deals including now-public OnDeck Capital.
The Largest 2014 New York VC deals – WeWork is on top
New York saw multiple nine-figure deals in 2014. Top deals covered a broad array of industries ranging from eCommerce to Media to Finance. Real estate venture, WeWork, which offers co-working spaces, had 2 of the 3 largest NY deals of the year.
| Company | Round | Amount ($M) | Quarter |
|---|---|---|---|
| WeWork | Series B | $355 | Q4’14 |
| Vice Media | Growth Equity | $250 | Q3’14 |
| WeWork | Series A | $157 | Q4’14 |
| Flatiron Health | Series B | $130 | Q2’14 |
| Oscar Health Insurance Co. | Series A | $80 | Q2’14 |
| OnDeck Capital | Series E | $77 | Q1’14 |
| IEX Group | Series C | $75 | Q3’14 |
| Harry’s Razor Company | Series B | $75 | Q4’14 |
| Harry’s Razor Company | Series A | $75 | Q1’14 |
| FanDuel | Series D | $70 | Q3’14 |
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