New York's Traditional Industries Find Growth in VC
October 10, 2013
Much of New York’s allure for venture capitalists in recent years is that many of the city’s startups play to the region’s traditional strengths, such as financial services, publishing and entertainment, in addition to it being a consumer core and a home for large corporate offices. As such, many of the city’s companies that have received financing in recent years are aimed at improving these industries with enhanced shopping experiences, consumer entertainment and targeted-marketing campaigns.
While software has, unsurprisingly, led the venture capital industry in the number of financings in 2013—nationally, software has expanded its control of VC financings from 32% of deals in 2009 to almost 40% of deals through 3Q 2013—New York has seen an opposite trend, PitchBook data show. After peaking at 45% of New York deals in 2009, software has comprised 36% of VC rounds in 2013. The city’s software startups are about evenly split between consumer- and enterprise-focused companies, with many blurring the line between the two. Companies like Relationship Science, Honest Building and Work Market all attempt to redefine professional networking or to act as an outsourced human-resources department. Other key New York companies in the space work on business productivity and financial software.