New York pulled neck and neck with the Bay Area as a startup hub in Q3. The Big Apple inked venture deals at a blistering pace, closing 403 to the Bay Area's 515, according to a new report from Pitchbook.
The Beast from the East
Before COVID, running a startup meant going to SF. Today, startupland is increasingly bicoastal, with SF and NYC the twin capitals.
The Bay did shoot in the lights out in one area, however: total capital raised. Bay startups pulled in $12.7 billion in Q3, compared to just $3.6 billion for New York.
New York's startup scene is newer, so it makes sense that fewer dollars were raised. Early stage companies raise single digit millions while late stage startups can raise billions at a time.
As NYC startups mature, you'll start to see those Silicon Valley-style megarounds here as well.
What I'm Seeing in the Big Apple
The New York startup scene feels more alive than ever to me.
Events are happening every night of the week. Founders I've known on Titter have a funny way of moving here.
Founders and investors that don't live in NYC stop in frequently. And when they're not here, there's a pretty good chance they're in Silicon Valley.
Some founders and investors are finding NYC more appealing than the Bay these days. For all its problems, New York is safer than SF with a richer cultural scene.
NYC Is Producing Top Talent
Traditionally, Silicon Valley's universities provided a better pipeline for tech startups than New York's. But NYU is producing some great founders, and Cornell Tech on Roosevelt Island is cranking out top tier engineering talent.
This environment is launching some great startups. In the last year, I've invested in as many companies in NYC as I have in the Bay — something I never thought would happen.
Wrap-Up
Ten years from now, I think SF and NYC will be roughly equal as startup hubs.
Founders will ping between them raising money. Investors will rack up frequent flier miles hitting the other coast to see what's new.
What do you think of the New York startup scene today? Leave a comment and let us know!
If you enjoyed this post, subscribe for more like this!
More on tech:
Early Stage NYC Startups Struggle Through Venture Downturn
AI Compute Cost Is Going to Zero
Where's the Money? — Venture Funding Slips Again in Q3
Save Money on Stuff I Use:
Fundrise
This platform lets me diversify my real estate investments so I'm not too exposed to any one market. I've invested since 2018 with great returns.
More on Fundrise in this post.
If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!
Misfits Market
I've used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!
I wrote a detailed review of Misfits here.
Use this link to sign up and you'll save $15 on your first order.
No comments:
Post a Comment