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Silver Linings Appear in 2022’s Shrunken Venture Capital Pool in NYC
March 31, 2023 10 Minute Read
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- Although the landscape for tech startups changed dramatically in 2022, an examination of venture capital activity in the five boroughs revealed that the city’s entrepreneurial economy remains fundamentally healthy.
- While total venture capital volume to NYC fell by 50% from $42.5 billion in 2021 to $21.1 billion in 2022, the total number of deals dropped by a more modest 23% and small (<$10M) and medium-sized ($10M-$50M) deals fell by 12% and 23% respectively.
- Technology companies were the destination for nearly 84% of venture capital funds that poured into NYC in 2022 with companies categorized as ‘other’ -- which include food and beverage concepts and healthcare services – coming in second with 5%.
- Average deal sizes increased in 2022 for firms involved in consumer experiences (+169%) and non-tech focused business and financial services firms (+59%) but decreased for all other business types.