New York City startups have been snapping up increasingly lucrative deals in recent years. While Silicon Valley continues to lead venture-capital funding in the U.S., investors are also writing big checks to Big Apple companies. New York startups closed nearly 1,500 deals worth $12 billion last year, nearly double the $6.3 billion in capital invested in 2014 for a similar number of deals, according to the New York City Economic Development Corporation.
About 850 deals have closed so far this year, netting $9.1 billion. James Patchett, president and chief executive of the New York City Economic Development Corporation, said the city has invested in technology projects like cybersecurity, blockchain and virtual and artificial reality.“This momentum has brought critical new investment to New York City’s ecosystem, which ultimately has created critical new jobs for New Yorkers,” he said in a statement. The city’s maturing market is helping boost deal sizes as companies that got seed funding several years ago secure more financing in later rounds, said David Silverman, a partner at PricewaterhouseCoopers. Financial institutions may be helping drive the investment as they turn to technology companies for assistance with automation and data management.
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