After witnessing an all-time NYC seed activity high in Q3, both total funding and number of deals were down in Q4. But while deals have decreased 30% from last quarter, average round size inched to the highest it’s been all year, a 3.7% increase from Q3.
Though we’re not used to seeing red arrows, Q4 activity still surpassed what we saw in Q1 and Q2 when it comes to number of deals, total funding, and average round size. We’ll see soon enough what 2020 has in store. Stay tuned.
The Primary NYC Seed Deal Report covers all NYC seed deals — defined as $250K–6MM — that have been publicly announced in each quarter.
Industries to Watch
B2B marketplaces
It’s been 10 years since Andrew Parker’s thorough unbundling of Craigslist graphic highlighted all the consumer marketplaces being created in the world. As many of the obvious multi-billion dollar consumer marketplace categories have had many entrants, B2B marketplaces are now taking center stage across the venture industry from staffing to supplies and many more.
Experience this
Following a $3.5MM seed round led by Greycroft, you may start seeing 1930s cars more frequently around NYC thanks to Nowaday, a modern tour company with a classic twist. The cool experiences don’t stop there though—YC graduate Museum of Future Experiences, closed on $2MM for its own trippy experience.
Next Brex?
The home of big banks, the Big Apple has starting to get its own taste of neobanks (not neo credit cards) for startups and SMBs. Rho Business Banking announced its $4.9MM seed round in October 2019 to directly compete with legacy banks for startup clients, while Novo Bank has been making some noise in SMB land since its own $4.8MM seed round in early 2019 led by Chime Board Member and Crosslink Partner, Jim Feuille.
Corporate wellness
2019 was all about mental health and wellness. With that, the funding of NY startups to make it easier for companies to provide great benefits to employees hasn’t slowed, as proven by the seed raise by Leon Health Science and Confetti.
Pet startups with great names
It seems as if every pet category is seeing some movement by companies with some pretty standout names. In late 2019, we witnessed the funding and/or launch of Spaws in-home grooming, Wagmos Pet insurance, Small Door Veterinary (backed by Primary), and Pawp’s market network for everything you can imagine pets.
No more waste
Following Package Free’s $4.5MM seed round announced in September of 2019, we’ve seen a slew of other sustainability companies ranging from marketplaces for excess prepared foods (YourLocal and Food For All) to the modern-day milkman (Mlkmn and The Wally Shop).
Primary NYC Seed Deal Report: Q4 2019
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