Three Reasons Why Venture Capitalists Are Investing in New York Startups
One criticism leveled at New York City’s fledgling tech scene is that it’s hard for entrepreneurs to find investors in their backyard. But increasingly that argument doesn’t hold water.
The latest numbers from PricewaterhouseCoopers and the National Venture Capital Association show third-quarter investment in New York rose 22 percent over the last year to $335 million. More than 60 percent of those deals were early or seed stage investments, which came from the city’s active Angel community and a new generation of VC firms like Betaworks and Union Square Ventures.
Many of New York’s hottest companies have also seen their latest rounds led by outside investors. Last month advertising platform AppNexus secured a $50 million round led by Microsoft, and in June the location-based service Foursquare received $20 million in Series B funding from the California-based Andreessen Horowitz. Boston VCs have been especially active with Matrix Partners, Spark Capital and General Catalyst, aggressively adding New York companies to their portfolios.