New York Startups On Fire: Third Quarter VC Funding Hits $335 Million

It’s official, ladies and gentlemen: New York is a hotbed of tech startups. Of the $335 million in investments during the third quarter, $87.1 million has gone directly to emerging software companies. These figures come from a joint report circulated last Friday by Pricewaterhouse Coopers and the National Venture Capital Association (NVCA). Despite the encouraging numbers, the total amount actually reveals a 15% dip in funding compared to the previous quarter—no doubt related to current economic woes on the homefront.

However, the burgeoning tech scene is proving it can be resilient and sustainable even in the toughest of times. The $335 million total is a whopping 22% increase compared to the same period last year. This constitutes no less than 83 deals made in the New York area. Those who’ve received the most generous amount of funding include Etsy ($20 million), AdMeld ($15 million), ZocDoc ($14.8 million), and Business Insider, Inc. ($2.2 million).

A further $129.6 million had gone to 22 other companies who are in an expansion stage while 37 new startups were boosted by $103.3 million in funding. Despite the obvious dip in figures between the last two quarters, many are still optimistic, pointing out that tech startup activity is at an all time high outside its traditional breeding ground in Silicon Valley.

The clincher here is it costs far less to get a fledgling tech startup off the ground in New York than the Valley, where at least $8 million in capital is a prerequisite. In New York City most startups make do with half the amount, usually between $3-4 million. The same trend is currently ongoing in San Francisco, which was also noted by the Pricewaterhouse Coopers/NVCA report, officially making it and NYC contenders for Silicon Valley’s crown as the Mecca of Tech.

Via: Crain’s New York Business