United States

New York City #2

MEMBERS:
New York City Economic Development Corporation Tech:NYC

"Record investment in New York startups is a testament to our city's unmatched entrepreneurial talent. Local tech continues to drive the city’s economy — a win for all New Yorkers."

Jason Myles Clark
Executive Director, Tech:NYC
#3 Global Ecosystem in Funding
#3 Global Ecosystem in Talent & Experience
#3 Global Ecosystem in Performance

Highlights

2021 was a red hot year for venture capital in America’s second-largest tech hub. New York-based VC firms raised an estimated $1.6 billion in funds in 2021, and venture-backed startups in the region raised more than $55 billion — up from $20.2 billion in 2020. The ecosystem also saw two of the largest traditional IPOs by deal size for venture-backed, NYC-based startups in the last decade: UiPath, which was founded in Bucharest before moving to the U.S., and Oscar Health. Five New York-based tech companies raised more than $300 million in 2021: robotic process automation startup UiPath, Healthtech startup Ro, risk-detection AI company Dataminr, text message marketing startup Attentiv, and website building startup Squarespace, which also went public in 2021. Corporate card startup Ramp joined New York’s unicorn club when it raised $115 million in an April 2021 Series B round, reportedly becoming New York City’s fastest-growing startup. It has since increased its total fundraising to $1.4 billion over eight rounds. 


New York-based WeWork is partnering with chambers of commerce and Tech:NYC to launch WeWork Growth Campus NYC to provide entrepreneurs with space and resources. WeWork has pledged $25 million and will provide space in 11 locations. In 2021, the Queens Chamber of Commerce created Queens Tech Council, a tech industry group that advocates for tech companies in the borough and works to raise awareness that tech careers are accessible to everyone. Tech Year NYC, a pilot program created by Tech:NYC in partnership with Girls Who Code and the NYC Mayor’s Office of Youth Employment, will provide paid work and mentorship opportunities at tech companies for 1,000 students.

Ecosystem by the Numbers

TOTAL EARLY STAGE FUNDING
(2019H2-2021)
$14 bn
GLOBAL AVG.
$687 m
ECOSYSTEM VALUE
(2019H2-2021)
$371 bn
GLOBAL AVG.
$28.6 bn
MEDIAN SEED ROUND (2019H2-2021)
$1.2 m
GLOBAL AVG.
$671 k
MEDIAN SERIES A ROUND (2019H2-2021)
$8.1 m
GLOBAL AVG.
$4.7 m
SOFT. ENGINEER SALARY (2021)
$102 k
GLOBAL AVG.
$46 k
139 bn
GLOBAL AVG.
11.3 bn
1619
GLOBAL AVG.
101
Amount ($)
Count (#)

Exits

(2017-2021)
EARLY-STAGE FUNDING GROWTH TIER (2018/19 VS. 2020/21)
6
Calculated on a scale of
1 (lowest) to 10 (highest)
TOTAL VC FUNDING (2017-2021)
$88 bn
GLOBAL AVG.
$4.5 bn
TIME TO EXIT (2017-2021)
8.6 years
GLOBAL AVG.
9.4 years

Sub-Sector Strengths

AI, Big Data & Analytics

NYC-based AI companies received $8.7 billion across 292 deals in 2021. AI Summit New York will bring together representatives from the world’s leading organizations to discuss an AI-powered future. A coalition of NYC government agencies and businesses opened the nation’s first Cyberattack Defense Center in 2021. EDC’s Cyber NYC initiative has invested in growing the cyber workforce while NYC-based cybersecurity firms are attracting investor attention.

Life Sciences

In 2021, NYC’s annual life sciences VC and National Institutes of Health funding both touched all-time highs at $1.4 billion and $2.8 billion, respectively. NYC announced in June 2021 that it would be doubling its investment in the Life Sci NYC initiative to $1 billion to cement New York as a global leader in Life Sciences. As of 2021, NYC’s total lab exclusive inventory totaled about 1.9 million square feet and is projected to grow to 4.64 million square ft by 2025.

Blockchain

Mayor Eric Adams took his first three paychecks in cryptocurrency and has stated that he wants NYC to be the “center of cryptocurrency.” NYC is now home to over 250 blockchain startups and a growing pool of blockchain talent. Several of the largest blockchain employers in the world, including IBM, R3, and Coinbase, are also growing their footprint in NYC. In 2021, NYC accounted for almost half of all Blockchain investments nationally.

Reasons to Move Your Startup to New York City

Dedicated Support

NYC Business Quick Start is an effort to position NYC as the most business-friendly large city. It offers businesses a single point of contact to help navigate regulations and cuts through red tape to reduce processing time by 50%. New York SCORE provides free expert mentoring to entrepreneurs, and Empire State Development's Small Business Division also offers resources. NYC Department of Small Business Services offers free legal services. WE Legal helps female entrepreneurs access resources on business-related topics.

High-Quality Talent

NYC’s talent pool is over 4 million people, and roughly 3.2 million hold a bachelor’s degree — more than Los Angeles, San Francisco, Philadelphia, Washington, D.C., and Boston combined. 47% of the workforce is made up of immigrants and almost 200 languages are spoken in NYC. The workforce is cultivated by 100+ institutes of higher learning and numerous workforce training programs. Programs including Tech Talent Pipeline, a no-cost service to help companies find diverse, talented candidates, further strengthen the ecosystem.

Tax Benefits

START-UP NY offers new and expanding businesses the opportunity to operate tax-free for 10 years on or near eligible university or college campuses in New York. These companies’ employees will pay no state or local personal income taxes for the first five years on income up to $200,000 for individuals. Businesses also gain access to advanced research laboratories and industry expertise through these partnerships.

Selected Startup Organizations

Startup Genome Members

Key Ecosystem Players

Startup Genome
Partners

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
NY Fashion Tech Lab
NY Tech Alliance
NYC Blend
New Lab
New York Angels
SAP
Starta Venture Accelerator
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,
Would you like to be an ambassador in New York City?
Contact Us

Get connected

Are you interested in diving deeper into this ecosystem? Drop us a message. Our Ambassadors and Partners can plug you in.