United States

New York City #2

MEMBERS:
New York City Economic Development Corporation Tech:NYC

The resiliency of the NYC tech ecosystem throughout the pandemic — seen through blockbuster IPOs, record fundraising rounds, and hiring commitments — proves we can stand toe-to-toe with any tech hub in the world. This report is reason to be optimistic that the entrepreneurial culture New York City is known for is stronger than ever.

Julie Samuels
Founder and Executive Director, Tech:NYC
#3 Global Ecosystem: Talent & Experience
#3 Global Ecosystem: Funding
#2 North American Ecosystem: Performance

Highlights

New York trails only Silicon Valley in the number of venture deals completed in 2020 with the city raking in a total of between $12 and $20 billion. Combine the huge range of companies closing impressive deals with the city’s traditional position as a hub for finance, fashion, media, and the arts, and it’s clear New York City is one of the world’s premier startup ecosystems. Key to New York’s success is ensuring investment is shared beyond what is seen as traditional venture opportunities. Women.nyc offers a comprehensive set of business services to women entrepreneurs from underserved communities. This year, New York City also became the largest US city to recognize LGBTQ-owned companies as minority-owned businesses, making them eligible for billions in city contracts and business support services. Additional programs to support entrepreneurs include the Entrepreneurs Roundtable Accelerator which offers seed capital, mentoring, and co-working space, and Techstars NYC which connects founders with world-class resources to help them grow and scale. NY-based companies have investor support from Primary Venture Partners, a venture capital firm focused on transformative startups that has raised $404 million across six funds to date to invest in early- and late-stage NY-based startups, and Starta, which funds early-stage tech talent. New York City Economic Development Corporation’s $1 billion LifeSci NYC program builds on the city’s strong foundation across life sciences and aims to solidify New York as the public health capital of the world. New Energy Nexus New York is a not-for-profit accelerator focused specifically on clean energy companies looking to scale in New York.

Ecosystem by the numbers

TOTAL EARLY STAGE FUNDING
$10.2 bn
GLOBAL AVG.
$548 m
ECOSYSTEM VALUE
$189 bn
GLOBAL AVG.
$13.68 bn
MEDIAN SEED ROUND
$810 k
GLOBAL AVG.
$480 k
MEDIAN SERIES A ROUND
$6 m
GLOBAL AVG.
$3 m
SOFT. ENGINEER SALARY
$106 k
GLOBAL AVG.
$44 k

Sub-sector Strengths

AI, Big Data & Analytics

New York is home to the AI Summit, which brings together representatives from the world’s leading organizations to discuss an AI-powered future. Real-time information discovery platform Dataminr closed a $475 million financing round in March 2021. AI startup Verbit raised $157 million in June 2021. AI and machine learning platform Dataiku raised a $400 million Series E in August 2021.

Cybersecurity

New York City Economic Development Corporation’s (NYCEDC) $100 million Cyber NYC initiative aims to transform New York into a global hub of cybersecurity innovation. As part of the initiative, NYCEDC partnered with Israeli VC firm Jerusalem Venture Partners (JVP) to launch the JVP accelerator program with the goal of connecting entrepreneurs to investors and other major cybersecurity players. Industrial cybersecurity company Claroty raised a $140 million Series D round in June 2021.

Life Sciences

New York’s LifeSci NYC program will spend $1 billion over the next five years to support Life Sciences, initiating a Request for Proposals (RFP) that invites nonprofit organizations or joint ventures led by nonprofit organizations to submit proposals for new or expanded facilities. BioLabs New York is partnering with NYU Langone Health to build biotech co-working, acceleration, and R&D facilities, to attract promising early-stage life sciences companies. Aetion, a real-world evidence (RWE) and outcomes-based analytics company, raised a $110 Series C round in May 2021.

Reasons to move your startup to New York City

Ease of Doing Business

NYC Business Quick Start, a new $11 million initiative from the Mayor’s Office and the NYC Department of Small Business Services (SBS), is focused on cutting red tape to make New York City the easiest place in the United States to start a small business.

World-class Talent

Approximately 3.2 million New Yorkers hold a bachelor’s degree or higher, more than Los Angeles, San Francisco, Philadelphia, Washington DC, and Boston combined. New York is home to more than 1 million college students and some of the leading law, business, medical, engineering, maritime, design and fashion, and film schools in the country. In addition, 3.2 million immigrants from over 150 countries call New York home, broadening the skills and perspectives available to employers.

Startup Community

Startup Genome
Members

Startup Genome
Partners

Starta Venture Accelerator
Blue Ridge Labs
Brooklyn Chamber of Commerce
Bunker Labs
Cela
Civic Hall
Coindesk/Consensus
Company (previously Grand Central Tech)
Entrepreneurs Roundtable Accelerator
Flatiron Partnership
Gary's Guide
Innovative Collective
Mayor's Office of International Affairs - NYC
MeetUp
New Lab
New York Angels
NY Fashion Tech Lab
NY Tech Alliance
NYC Blend
SAP
TechStars
Urban-X
VentureOut

Featured Articles from
Local Ambassadors

Peter Crysdale
Peter Crysdale is a serial founder, seed investor, and mentor in the startup community. Currently interested in decentralization, turnarounds and diversity.
Peter Crysdale | Startup Grind East Coast Regional, Director Co-Founder Recorp,
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