Senior Vice President
New York Market Manager
City National Technology Group
A spate of big-money technology deals pushed total venture capital funding in New York City to $1.30 billion last quarter, up from $974.00 million a year earlier and just shy of last year’s high-water mark of $1.31 billion in the third quarter.
That left New York in third place among the nation’s top regions for venture investment, after No. 1 Silicon Valley and No. 2 Boston.
But following the national trend, fewer Big Apple startup firms got capital in the first quarter: a total of 81 companies were funded, down from 98 in the first quarter of 2014, 99 in the fourth quarter and the peak of 129 last summer, according to data firm CB Insights.
So, fewer companies and a bigger dollar total meant larger slices of the pie for those that got financing. The single biggest deal last quarter was a $130 million Series D infusion for Dataminr. The six-year-old data-crunching firm is a favorite of news organizations, governments and investment firms. Hedge funds, for example, use it for fast analysis of potential market-moving news.
Robin Gill, senior vice president for City National’s Technology Group in New York, said one of the strengths of New York’s startup community is the diversity of its tech businesses. “There’s a lot of true differentiation among the companies,” he said. “And we’re still in the early days of growing the tech community here. That makes it exciting.”
The first quarter’s big New York VC deals included a number of variations on the data-analysis theme. The second-largest New York deal was a $117 million Series E investment in Taboola. The company, founded in 2007, is responsible for the ubiquitous “content you may like” media widgets — the story promotions tagged on many websites. Its “predictive engine” seeks to find the audiences most likely to click on specific content.
MongoDB got an $80 million Series F investment. The seven-year-old company, originally funded in part by the CIA, provides a new generation of software and services to help businesses manage their data. It calls itself the world’s “fastest-growing database ecosystem.”
Gilt Groupe took in $50 million in Series E funding. The eight-year-old company offers online “flash sale” members-only shopping for discounted designer fashions, furniture, travel and other services.
EQUITY FINANCINGS FOR NEW YORK CITY VENTURE-BACKED COMPANIES
|1 Q 2015||4 Q 2014||3 Q 2014||2 Q 2014||1 Q 2014|
|Number of Financing Deals||81||99||129||114||99|
|Amount Invested ($MM)||$1,304.5||$998.4||$1,310.4||$1230.6||$973.9|
TOP 10 DEALS IN NEW YORK CITY
|COMPANY NAME||DESCRIPTION||CITY||ROUND TYPE||RAISED ($MM)||INVESTORS|
|Dataminr||Social media data analytics||New York||Series D||$130||Goldman Sachs, Venrock, Glynn Capital Management, Wellington Management, Fidelity Investments, Institutional Venture Partners, Tom Glocer, John Mack, Vikram Pandit, Credit Suisse NEXT Investors, Noam Gottesman, Nicolas Berggruen, WorldQuant Ventures|
|Taboola||Discovery and monetization platform for online video content||New York||Series E||$117||Fidelity Investments, Advance Publications, Comcast Ventures, Marker, Groupe Arnault, Steadfast Capital, Carlo De Benedetti|
|MongoDB||NoSQL database provider||New York||Series F-II||$80.0||Flybridge Capital Partners, Sequoia Capital, Union Square Ventures|
|Moda Operandi||Online luxury fashion retailer||New York||Series E||$60.2||New Enterprise Associates, Fidelity Investments, The Future Fund, Cond Nast|
|Betterment||Automated online investment company||New York||Series D||$60||Menlo Ventures, Bessemer Venture Partners, Francisco Partners, Northwestern Mutual Capital|
|Gilt Groupe||Online fashion retailer||New York||Series E||$50||New Enterprise Associates, Goldman Sachs, Pinnacle Ventures, Matrix Partners, General Atlantic, TriplePoint Capital, DFJ Growth Fund, Eastward Capital Partners, Softbank Corp.|
|Sprinklr||Social media management system for large enterprises||New York||Series E||$46||Battery Ventures, Intel Capital, Iconiq Capital|
|ClassPass||Online membership platform for fitness classes||New York||Series B||$40||CRV, General Catalyst Partners, Thrive Capital, Acequia Capital, Slow Ventures|
|Stack Exchange||Network of websites for developers and others to ask and answer questions||New York||Series D||$40||Spark Capital, Union Square Ventures, Bezos Expeditions, Index Ventures, Andreessen Horowitz|
|Booker Software||Service commerce platform for businesses||New York||Series C||$35||Bain Capital Ventures, Grotech Ventures, TDF Ventures, First Data Corp., Revolution Ventures, Signal Peak Ventures, Medina Capital, Jump Capital|
|The content of Venture Capital Report is compiled from data and sources believed to be reliable, but is not guaranteed as to accuracy or completeness. Opinions expressed are those of the authors or the interviewees and are not necessarily the opinions of City National Bank, member FDIC. This publication is intended to be a source of general information regarding subject matters of interest to our clients. The effectiveness of the advice or suggestions presented, if any, will depend on the reader’s situation and are for the reader to determine. If investments are discussed, the discussion should not be considered or relied upon as specific investment advice directed to the reader’s specific investment objectives, nor should any discussion of specific securities be taken as a solicitation or recommendation for any reader to buy or sell such securities. City National Bank (and its clients or associated persons) may at times have positions in securities and investments discussed from time to time in this publication and may make additional purchases or sales inconsistent with the discussion. City National Bank, as a matter of policy, does not give tax, accounting, regulatory or legal advice. Rules and regulations in the areas of law, tax and accounting are subject to change and open to varying interpretations. The reader is encouraged to consult his or her own tax, accounting or legal adviser.|