Monday June 17, 2019

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NY Drops to Third in 4Q VC Funding Behind Mass.

Massachusetts Population Density Map

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Venture capital deals in NY fell to third place, behind California and Massachussets, in the final quarter of 2011. The state ranked No. 2 in the third quarter, which Anand Sanwal of CB Insights described as “an anomaly.”

“Massachusetts was consistently No, 2 in the market, so this is a return to normalcy,” Sanwald told Crain’s New York Business.

In the fourth quarter, 73 NY deals raised $568 million, according CB Insights. In the previous quarter, NY had 86 deals worth $831 million, knocking Massachusetts back to third place.

Three of the city’s startups—Tumblr, ZocDoc and Buddy Media–received VC funding of more than $50 million each in the third quarter of 2011, but for fourth-quarter tech-related deals, NY ranked second only to California. The state had $363 million in deals. Fab.com, which launched in June, raised $40 million in a round from VC firm Andreessen Horowitz. Outbrain raised $35 million to invest in business development and global expansion. Knewton, an education technology firm, completed a $33 million round.

But not everyone was impressed. “It’s still minimal,” said Mr. Sanwal. “New York is not balanced in sector allocations, and it’s still more lopsided to tech.”

Crain’s New York Business