This week, we take a look at the state of venture capital and early stage funding in NYC and nationally over the last 16 quarters from the 2nd quarter of 2012 through the first quarter of 2016. Analyzing some publicly available data from our friends at CrunchBase, we break down national and NYC aggregate statistics for deals by stage of funding (Angel/Seed, Series A, Series B, and Series C+). To further the analysis, we have included some data that demonstrates historical trends in terms of average round sizes as well as New York’s relative share of the total funding market over time.
CLICK HERE TO SEE THE FULL REPORT
Quick Takeways:
Seed and angel investment recovered after a rather slow fourth quarter. Q1 2016 also represents more than a doubling over the same period in 2016 in terms of dollar amount. Q1 2016 represents the 5th largest quarterly amount for seed in the last 16 months.
Tweetables:
$85M was invested in seed/angel rounds in Q1 of 2016 in NYC in 61 deals Tweet this
$1.2B has been invested in 1133 seed/angel rounds in NYC over the last 16 quarters Tweet this
Quick Takeways:
The national market for early stage funding for Q1 2016 was up over 25% from the same period in 2015.
Tweetables:
$490M was invested in 354 seed/angel rounds in Q1 of 2016 in the US Tweet this
$8.2B was invested in 8184 seed/angel rounds in the US over the last 16 quarters Tweet this
Quick Takeways:
New York’s share of total startup early stage financing has steadily increased in the percentage of deals but has remained relatively unpredictable in terms of dollar amounts with a few large financings here and there skewing some of the previous 16 quarters.
Tweetables:
Q1 NYC seed/angel rounds comprised 17.23% of total in the US in terms of $ Tweet this
Quick Takeways:
Series A funding nearly tripled in Q1 2016 after a woeful fourth quarter however was done slightly from the same period in 2015.
Tweetables:
$180M was invested in 25 Series A rounds in Q1 of 2016 in NYC Tweet this
$2.7B was invested in 369 Series A rounds in NYC over the last 16 quarters Tweet this
Quick Takeways:
National Series A funding in Q1 2016 was up nearly 50% from 2015 levels during the same period.
Tweetables:
$1.83B was invested in 191 Series A rounds in Q1 of 2016 in the US Tweet this
$23.8B was invested in 3725 Series A rounds in the US over the last 16 quarters Tweet this
Quick Takeways:
New York’s share of both the dollar and number of deals have steadily increased over the last 4 years.
Tweetables:
Q1 2016 NYC Series A rounds comprised 10% of total $ amount in the US with 13% of deals Tweet this
Quick Takeways:
The number of NYC Series B financings have remained relatively stable over the last 3 years in New York and consistently $200M+ is being invested over the last two years, each quarter into these financings. Q1 2016 Series B funding was up over 25% from the same period in 2015 and B financings have accounted for over $1.5B in NYC over the 4 quarters.
Tweetables:
$252M was invested in 19 Series B rounds in Q1 of 2016 in NYC Tweet this
$3.5B was invested in 217 Series B rounds in NYC over the last 16 quarters Tweet this
Quick Takeways:
Series B fundings nationally has been the lowest it has been in 9 quarters. Also, Q1 2016 funding is down closet 20% since 2015 levels in the same period.
Tweetables:
$1.68B was invested in 104 Series B rounds in Q1 of 2016 in the US Tweet this
$31B was invested in 1910 Series B rounds in the US over the last 16 quarters Tweet this
Quick Takeways:
New York is undoubtedly gaining a bigger share of the Series B pie as New York’s claim on both the number of deals and dollar amounts have been steadily increasing over the last 16 quarters. This is partly reflective of the lackluster Series B market nationally but also indicative of the growth of some New York startups that are beginning to scale. The percentage of NYC companies taking Series B funding is the highest it has been over the last 16 quarters.
Tweetables:
Q1 NYC Series B rounds comprised 15% of total $ amount in the US with 18% of deals Tweet this
Quick Takeways:
Last year, Q1 late stage funding in NYC approached $1B for the first time and it has kept up that piece since with the exception of Q4 which was sluggish across all rounds. Later New York startups are gaining momentum and raising more capital as they scale.
Tweetables:
$939M was invested in 26 Series C+ rounds in Q1 of 2016 in NYC Tweet this
$7.9B was invested in 226 Series C+ rounds in NYC over the last 16 quarters Tweet this
Quick Takeways:
Later stage funding in Q1 2016 nationally was up ~75% from the same period in 2015 but did retreat from Q3 totals, which was the highest in the last 4 years.
Tweetables:
$7.15B was invested in 192 Series C+ rounds in Q1 of 2016 in the US Tweet this
$75.8B was invested in 2191 Series C+ rounds in the US over the last 16 quarters Tweet this
Quick Takeways:
New York’s share of both the dollar and number of deals have steadily increased over the last 4 years.
Tweetables:
Q1 NYC funding rounds comprised 13.54% of total $ amount in the US with 13.14% of deals Tweet this
Quick Takeways:
Thanks to the increase in late stage rounds, NYC recorded it second highest quarterly total in history, raising over $1.6B. Over the last year, on average ~$1B is being invested into startups in the city each quarter.
Tweetables:
$1.6B was invested in 171 startup rounds in Q1 of 2016 in NYC Tweet this
$17B was invested in 2327 startup rounds in NYC over the last 16 quarters Tweet this
Quick Takeways:
The total amount raised nationally by startups has increased steadily over the last 3 years and has nearly doubled in that same time frame on average. The number of deals have not increased at that same rate which will lead to higher deal sizes on average which will see in a minute.
Tweetables:
$12.34B was invested in Q1 of 2016 in the US in 1230 rounds Tweet this
$160B was invested in 20718 startup rounds in the US over the last 4 years Tweet this
Quick Takeways:
New York’s share of the total market has increased at an impressive rate over the last 16 quarters in both metrics being tracked.
Tweetables:
Q1 NYC funding rounds comprised 13% of total $ amount in the US with 14% of deals Tweet this
Quick Takeways:
The increases in the cost of hustle and getting past that seed/angel stage is negligible as the early stage financing has remained nearly identically over the last 16 quarters. This is also partially attributable to the exponential reductions in the cost of the technology stack. The money being poured into NYC startups in large amounts is for scaling of proven concepts in the later rounds where the average late stage round has nearly doubled. Later stage rounds in Q2 and Q3 were unusually high and reflective of a frothy environment. It appears as though there has been a slight correction both in the US and NYC.
Tweetables:
The average seed/angel round in NYC in Q1 was $1.4M Tweet this
The average Series A round in NYC in Q1 was $7.2M Tweet this
The average Series B round in NYC in Q1 was $13.3M Tweet this
The average Series C+ round in NYC in Q1 was $36.1M Tweet this
Quick Takeways:
Scaling costs money. This is nearly identical to the chart for NYC. The early stages have remained consistent with there has been at least a 1.5x fold increase in average round sizes past seed. Later stage rounds in Q2 and Q3 were unusually high and reflective of a frothy environment. It appears as though there has been a slight correction both in the US and NYC.
Tweetables:
The average seed/angel round in the US in Q1 was $1.4M Tweet this
The average Series A round in the US in Q1 was $9.6M Tweet this
The average Series B round in the US in Q1 was $16M Tweet this
The average Series C+ round in the US in Q1 was $37M Tweet this
