Enterprise Weekly #431: NYC Enterprise Software Funding in 3 Charts, and More
This week, we analyzed data on the NYC enterprise software funding ecosystem from the first half of 2023. What we found is that after experiencing colossal growth in 2021 and a major reset in 2022, NYC enterprise funding activity continued its decline in line with the broader market in 2023.
A bright spot from these findings was 🌟Seed deal activity🌟. Seed financings held up well and represented the largest portion of deal activity with 21 deals (44% of the total 1H23 activity). Annualizing this figure keeps Seed deals done roughly in line with 2021 and 2022 activity, and significantly ahead 2019 and 2020.
Annual Funding & Deal Count: NYC enterprise software startups raised $1.2B across 48 deals. Compared to 1H22, this is a 61% decrease in funding ($3.2B in 1H22) and 47% decrease in deal count (90 in 1H22).
Breakdown by Stage:
Series A financings were the second largest portion of deal activity with 16 deals (33% of total deal activity), however they're tracking to decline 36% year over year.
Series B and beyond financings essentially stalled out with only 11 deals, compared to 64 in 1H22 and 80 in 1H20.
Large Financings: There were two rounds over $100M, including Wiz ($300M) and Chronosphere ($115M). There were four rounds between $50-99M, including Spring Health ($71M), Sourcepass ($65M), Cybersyn ($62.9M), and Warp ($50M).
As overall funding declines and snagging VC dollars becomes more challenging, we encourage enterprise founders looking to raise a Seed round to check out our fundraising template which outlines how to build a GTM narrative and ideal customer profile even when there are no (or little) metrics to showcase.
As a parting reminder, Work-Bench is still very much actively meeting and investing in enterprise founders at the earliest stage. If you’re thinking about launching an enterprise software startup or have already taken the leap, it's never too early to connect with us.
🍻 Join more events:
July 11: AI Founders & Builders Summer Meetup hosted by Insight Partners, Irregular Expressions VC & BackboneAI
Email r@backbone.ai for a spot, space is limitedJuly 18: Transforming Your SaaS Pricing with Pre-Paid Credits Webinar
August 2: Work-Bench Next Gen API Experience Meetup Ft. Merge & Speakeasy
All Summer Long: Work-Bench Infrasummer
📚 Read more news:
NBCNews: In NYC, Companies Will Have to Prove Their AI Hiring Software Isn't Sexist or Racist
SimilarWeb: ChatGPT Drops About 10% in Traffic as the Novelty Wears Off
WSJ: Companies Look to Pay Tech Vendors Based on Business Outcomes, Not Usage
WSJ: Silicon Valley Bank Gets Back to Lending, Albeit at Slower Pace
📚 Read more (th)reads:
Company: Courier Health
Role: Software Engineer
Technology: Patient Engagement Platform
Funding: $4M from Work-Bench
🌟 Company of the Week 🌟
Rubber Ducky Labs raises $1.5M led by Bain Capital Ventures
Data / AI / Machine Learning • Seed • San Francisco, CA
Founders: Alexandra Johnson (CEO), Georgia Hong (CTO)
Infisical raises $2.8M led by Gradient Ventures
Risk / Security • Seed • San Francisco, CA
Opass raises $3.5M led by Initialized Capital
Risk / Security • Seed • San Francisco, CA
BentoML raises $9M led by DCM Ventures
Data / AI / Machine Learning • Seed • San Francisco, CA
BeeKeeperAI raises $12.1M led by Sante Ventures
Data / AI / Machine Learning • Series A • San Francisco, CA
Datapeople raises $13M led by GreatPoint Ventures and New Markets Venture Partners
HR Tech • Series A • New York, NY
JuliaHub raises $13M led by AEI HorizonX
Data / AI / Machine Learning • Venture • Cambridge, MA
Zenarate raises $15M led by Volition Capital
Sales / Marketing • Seed • Palo Alto, CA
Slang.ai raises $20M led by Homebrew
Future of Work • Series A • New York, NY
CalypsoAI raises $23M led by Paladin Capital Group
Data / AI / Machine Learning • Series A • Washington, D.C
Parabola raises $24M led by OpenView
Collaboration / Productivity • Series B • San Francisco, CA
Astrix raises $25M led CRV
Risk / Security • Series A • New York, NY
Venn Software raises $29M led by New Spring Capital
Risk / Security • Series A • New York, NY
Cyware raises $30M led by Ten Eleven Ventures
Risk / Security • Series C • Jersey City, N.J
Reka raises $58M led by DST Global Partners and Radical Ventures
Data / AI / Machine Learning • Seed • Sunnyvale, CA
Fly.io raises $70M led by EQT Ventures
Infrastructure / Dev Tools • Series C • Chicago, IL
Cyera raises $100M led by Accel
Risk / Security • Series B • San Mateo, CA
Redpanda raises $100M led by GV, Lightspeed Venture Partners and Haystack
Data / AI / Machine Learning • Series C • San Francisco, CA
Typeface raises $100M led by Salesforce Ventures
Data / AI / Machine Learning • Series B • San Francisco, CA
Runway raises $141M led by Google, Nvidia and More
Data / AI / Machine Learning • Series D • New York, NY
DigitalOcean acquires Paperspace for $111M
Data / AI / Machine Learning • Acquisition • New York, NY
ThoughtSpot acquires Mode Analytics for $200M
Data / AI / Machine Learning • Acquisition • San Francisco, CA
Databricks acquires MosaicML for $1.3B
Data / AI / Machine Learning • Acquisition • San Diego, CA
IBM acquires Apptio for $4.6B
Data / AI / Machine Learning • Acquisition • Bellevue, WA
HashiCorp acquires BlueBracket for an Undisclosed Amount
Risk / Security • Acquisition • Palo Alto, CA
Ramp acquires Cohere for an Undisclosed Amount
Future of Work • Acquisition • New York, NY