48.5 F
New York
Thursday, March 28, 2024

Venture Capitalists Pouring Billions Into New York Startups

Related Articles

-Advertisement-

Must read

New York City is known for many things. The thing that it is noted most for is its ability to harness the talents and investments in Wall Street as being the financial capital of the United States and perhaps the world. This past year, venture capitalists invested $3 billion to New York City startups.

A New York City Economic Development Corp report found that “total venture capital investment [here] rose dramatically from last year, up 28 percent to $2.97 billion.

Rather than investing in the newest craze in Silicon Valley, venture capitalists are looking and combing the city for promising investment, showering billions of dollars into the economy.

These capitalists are investing in artificial intelligence, wedding planning venture firms and cryptocurrency according to the NYCEDC.

The agency said these investment statistics were the second highest in the history of New York city. The highest being the third quarter of 2017 which saw more than $3 billion in funding. New York beat out San Francisco as a venture capital powerhouse for the first time in years. Back then New York City startups saw an increase in funding from $4.227 billion during that period up from $2.689 billion in the second quarter of 2017.

Silicon Valley still leads New York in venture-capital funding overall but the tide is turning.

Ryan Birchmeier, a spokesman for NYCEDC said that the city “is creating the infrastructure to grow industries of the future…which they hope will create good-paying jobs for New Yorkers.”

Dataminr, which offers alert services on real-time information and events to inform decision-making across the corporate enterprises is the front runner in this capital surge. Dataminr’s website declares that “their solutions for Corporate Security, Finance, the Public Sector, News and PR/Communications are relied on 24/7 by thousands of clients in over 70 countries.” Adding that the corporation “discovers high-impact events instantly and critical breaking information long before it’s news.” Dataminr raised an incredible $392 million from investors. The company’s worth has now grown from $680 million valuation to $1.6 billion.

Other firms getting financial investment is a cryptocurrency application called R3 and a wedding planning service called Zola. Both are getting investment over $100 million.

The companies that are investing in the startups include Moore Strategic Ventures, Vulcan Capital, Declaration Partners, MSD Capital, Valor Equity and Morgan Stanley’s Tactical Value Fund and others.

CEO and Founder of Dataminr Ted Bailey remarked that venture capital and tech companies are blossoming here because “there is a robust network of early-stage companies, spanning multiple vibrant industries.”

Nick Beim one of the early investors of Dataminr added these kinds of companies because “the city has strong tech talent pools, including university data science labs and a lot of financial quants.”

Beim, who is also a partner in the VC firm Venrock, believes that to make certain that VC and tech continue to do well, he says that the city should develop enticements for “large technology companies to build engineering offices.” Beim also argues for another point and that is to improve locas school’s science, technology, engineering and math, or STEM, as well.

With all this good news of venture capital flowing into New York, the city that got its reputation where the streets were made of gold and where the engines of capitalism were fired, the city which was attacked on 9/11, the phoenix of finances is rising once more..

By: Alex Salanpas

balance of natureDonate

Latest article

- Advertisement -