Would it really be a day in NYC tech without a few mega-rounds of funding?
On Thursday, two companies — Ribbon and Assembled Brands — raised a combined $325 million. These sizable fundings come on the heels of a slew of others just like them, including Compass’s $400 million round last month and Braze’s $80 million investment just last week.
Research shows that this is no coincidence. According to The New York Times, the recent uptick in investment dollars is thanks to new investors who manage large funds and would rather invest a large sum in one promising company than shell out smaller rounds for multiple startups.
“As soon as they feel like they have a winner, they will really put a lot of resources behind it,” CB Insights’s CEO Anand Sanwal told the publication.
These are the latest NYC tech companies that have investors betting big.
$225M, Series A
Investors: Nyca Partners, NFX, Greylock Partners, Bain Capital Ventures
Bio: Ribbon is a fintech company that makes it easier for people to buy their homes. Rather than wait until their mortgage is secured, buyers can have Ribbon purchase their home — after which they “rent” from Ribbon until they get financing.
News: The fintech company raised $225 million in Series A funding from Nyca Partners, NFX, Greylock Partners, Bain Capital Ventures. It launched in Charlotte, North Carolina and plans to grow to 10 new markets next year. [TechCrunch]
Investors: Oaktree Capital Management
Bio: Assembled Brands is a company that finances emerging consumer goods brands. The company leverages proprietary technology that uses data to identify the quality of a brand’s relationships with consumers.
News: The company raised $100 million in a venture funding round from Oaktree. It will put the investment toward branching into new industries and further enhancing its proprietary technology. [Press release]