NYC Startups Raised $2.1B in December 2025
New York City startup funding surged to close out 2025, with December’s $2.1B total representing a 39% month-over-month increase and a nearly 190% year-over-year jump. The strong finish was driven by significant late-stage activity, including Eon’s $300M round, as NYC captured 13.5% of national venture funding.
Key Insights
New York City’s startup ecosystem closed 2025 with significant momentum, as December funding reached $2.08B across 75 deals—marking a sharp reversal from November’s more modest performance. The 38.7% month-over-month increase and nearly tripling of December 2024’s totals reflected renewed investor confidence and several substantial late-stage deployments as venture funds deployed capital before year-end.
The city’s share of national funding climbed to 13.5%, its highest percentage in recent months, even as the broader U.S. market contracted 15.4% from November to $15.4B. This countercyclical strength demonstrated NYC’s resilient position in the venture landscape and the concentration of significant rounds in the metro area during the month.
December Highlights:
- Top Deal: Eon’s $300M late-stage round for cloud data management
- AI Investment: 37 AI companies raised $730M (35.1% of total funding)
- Deal Size Growth: Median deal reached $14.1M, up from typical monthly averages
- Countercyclical Strength: NYC gained market share while US funding declined 15.4%
NYC Deal Activity by Round Type
| Round Type | Total Funding | % of Total | Deals | Avg Deal | Median Deal |
|---|---|---|---|---|---|
| Early-Stage | $130.7M | 6.3% | 31 | $4.2M | $2.6M |
| Series A | $403.2M | 19.4% | 18 | $22.4M | $18.5M |
| Series B | $399.3M | 19.2% | 13 | $30.7M | $20.1M |
| Late-Stage | $1.15B | 55.1% | 13 | $88.2M | $50.0M |
| TOTAL | $2.08B | 100% | 75 | $27.7M | $14.1M |
December’s funding distribution reflected a mature financing cycle, with late-stage deals capturing more than half of all deployed capital despite representing less than one-fifth of total transactions. The $1.15B directed to 13 late-stage companies demonstrated continued investor appetite for growth-stage opportunities.
The relatively balanced distribution across Series A and Series B stages—each capturing approximately 19% of total funding—indicated healthy progression through the venture pipeline. Early-stage activity, while representing only 6.3% of capital deployed, constituted 41% of deal volume, showing ongoing seed and pre-seed market activity even as larger rounds dominated headline figures.
Top NYC Funding Rounds – December 2025
| Company | Industry | Amount | Round |
|---|---|---|---|
| Eon | Cloud Data Services | $300.0M | Late-Stage |
| Yarrow | Healthcare | $200.0M | Late-Stage |
| Imprint | FinTech / Payments | $150.0M | Late-Stage |
| Loop AI Group | Artificial Intelligence | $100.0M | Late-Stage |
| Adaptive Security | Cybersecurity / AI | $81.0M | Series B |
| Paradigm | Healthcare | $78.0M | Series B |
| Excelsior Sciences | Biotechnology / AI | $70.0M | Series A |
| Liberation Bioindustries | AgTech / Biotechnology | $60.2M | Late-Stage |
| Zafran Security | Cybersecurity | $60.0M | Late-Stage |
| PermitFlow | Construction Tech / AI | $54.0M | Series B |
Eon’s $300M late-stage round topped December’s NYC funding activity, representing 14.4% of the month’s total capital deployed. The cloud data management company’s substantial raise reflected strong investor demand for infrastructure software solutions, particularly those addressing enterprise data governance and compliance requirements.
Healthcare emerged as a notable theme among top deals, with Yarrow’s $200M round and Paradigm’s $78M Series B demonstrating continued appetite for healthcare technology investments. The sector’s prominence in December’s largest rounds aligned with broader industry trends toward digital health transformation and value-based care models.
AI Investment Remains Significant Driver
Artificial intelligence companies maintained substantial presence in December’s funding landscape, capturing $730M across 37 deals—representing 35.1% of all capital deployed in NYC during the month. While below the AI concentration levels seen in some recent months, this figure still demonstrated the technology’s continued centrality to venture investment strategies.
The AI funding was notably distributed across multiple sectors, with cybersecurity (Adaptive Security, $81M), biotechnology (Excelsior Sciences, $70M), and construction technology (PermitFlow, $54M) all leveraging AI capabilities to attract significant venture capital. This cross-sector distribution suggested AI was increasingly viewed as an enabling technology rather than a standalone investment category.
Market Analysis
December 2025’s performance represented a dramatic turnaround from December 2024’s subdued close to the year. The nearly 190% year-over-year increase reflected both improved market conditions and a concentration of significant deals that might have closed earlier in previous years but were delayed into late 2025 due to various market dynamics.
The strong month-over-month growth of 38.7% contrasted sharply with the national market’s 15.4% decline, positioning NYC as a countercyclical strength in the venture ecosystem. This divergence likely reflected several factors: concentration of late-stage companies reaching financing milestones, strategic year-end capital deployment by funds, and NYC’s increasingly central role in specific high-growth sectors including fintech, healthcare technology, and enterprise software.
The median deal size of $14.1M represented a significant increase from typical monthly medians, suggesting that even mid-market rounds saw improved terms and larger financing commitments. This metric, combined with the $27.7M average deal size, indicated a funding environment skewed toward growth-stage companies but with sufficient distribution across stages to support ecosystem health.
Looking Ahead to 2026
December’s strong finish positions NYC’s venture ecosystem favorably entering 2026. The balanced Series A and B activity indicates healthy deal flow through the venture pipeline, while the elevated AI investment levels across diverse sectors points to continued innovation in applied machine learning and enterprise intelligence capabilities. Market participants will be watching for sustained momentum through Q1 2026, particularly in early-stage deal flow and whether late-stage activity can maintain December’s elevated pace.
📊 About This Report
This monthly funding analysis is based on venture capital activity reported in Crunchbase for NYC-based startups during December 2025. Funding amounts are classified into four stages: Early-Stage (pre-seed, seed, angel), Series A, Series B, and Late-Stage (Series C+, corporate rounds, private equity). All figures represent disclosed funding amounts and may not capture undisclosed rounds or certain debt financing.
Data source: Crunchbase | Analysis by AlleyWatch
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