NYC Continued to Dominate in VC Funding Growth in Q3

Venture funding has skyrocketed in NYC this year, blowing 2020’s record-breaking numbers out of the water. And there are still three months to go.

Written by Ellen Glover
Published on Oct. 18, 2021
NYC Continued to Dominate in VC Funding Growth in Q3
NYC VC Growth in Q3 2021
Photo: Shutterstock

Despite the tumultuous nature of the ongoing Covid-19 pandemic, venture capital fundraising over just the last nine months has skyrocketed, blowing 2020’s record-breaking numbers out of the water. And, once again, NYC has proven itself to be a dominant force in the nation’s tech startup ecosystem.

According to the Q3 2021 PitchBook-NVCA Venture Monitor published late last week, $82.8 billion in capital was deployed across more than 3,500 deals last quarter, following a similarly strong performance during Q1 and Q2. This means a total of $238.7 billion has been invested in 2021 so far.

While investment activity was certainly healthy across the angel, seed and early stages, there has also been an explosion of mega-rounds (deals totaling $100 million or more). More than 200 of these deals were closed in Q3 alone, bringing the total invested in mega-rounds so far this year to $136.5 billion — nearly double the record $76.7 billion invested in 2020.

Also in NYCNYC’s 5 Biggest Funding Rounds in September Totaled $1B+

Of course, if we zoom in, these larger trends were mirrored in NYC too, solidifying this city as a leading tech hub. All told, New York has had the second-most VC deals in 2021 so far (following Silicon Valley), amounting to nearly $40 billion — a 153 percent increase from last year. And a good chunk of this money was raised through some impressive recent mega-rounds. 

For instance, Articulate Global, a longtime leader in the e-learning and training space, kicked off Q3 with an eye-watering $1.5 billion Series A round, valuing the company at $3.75 billion. Several other buzzy startups like data management software provider Dataiku, short-term rental marketplace Blueground, and women’s health startup Maven raised mega-rounds of their own last quarter, too. In fact, Maven hit a $1 billion valuation thanks to its recent $110 million Series D, making it one of a growing number of women-led unicorns — and the only one in the U.S. focused on women and family health. 

That brings us to another area NYC dominates, according to PitchBook: women-founded companies. The report found that, nationwide, capital investments in women-founded companies hit record highs this year, totaling nearly $40 billion. And women founded-businesses have reportedly raised more money in New York than any other metro area, totaling $3.4 billion across 457 deals as of September. Some recent notable rounds on this front include Andela’s $200 million investment led by SoftBank, and Alloy’s $100 million Series C — both of which brought these companies’ respective valuations to north of $1 billion. 

Looking ahead, NYC shows no signs of slowing down as 2021 draws to a close. The city is a hotbed to some of the buzziest industries today, including proptech, e-commerce, fintech and healthtech, which means this momentum will likely carry into 2022.

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