The State of Enterprise Tech in NYC: 2023 Funding Report
We’ve been investing in enterprise tech startups for over a decade and during that time have also been tracking the local NYC enterprise ecosystem’s growth through a series of Enterprise Tech in NYC Funding Reports.
See our State of Enterprise Tech in NYC: 2023 Funding Report ➡️ here.
TL;DR: After experiencing colossal growth in 2021 and a major reset in 2022, NYC enterprise funding activity continued its decline in 2023. However, we expect 2023 to be the low point with 2024 resuming annual growth across deal count, fundraising volume, and exit activity.
A few highlights:
Most successful round: Seed (kept pace with 2021’s peak and outperformed broader US Pre-Seed and Seed trends, which dipped 33.2% YoY)
Median Seed rounds increased to $4.8M (up 11.6% YoY), and when combined with Series As represented 75% of all funding activity for the year
Most impacted round: Series B (plummeted 73% YoY)
Unicorn count: 47 (but only 7 companies raised up-rounds in this tough macroeconomic environment)
Leading unicorn sector: Data / AI / ML
M&A and IPO count: None
Our prediction: Series Bs rebound in 2024 at more normalized pricing, and in turn Series A investors become more active and eager to fund opportunities from the large pool of Seed deals that got done in 2023.
Lastly, check out our updated NYC Enterprise Tech Index for a ranking of the largest NYC-based public and private, venture backed enterprise companies, ranked by market cap and total funding amount, respectively. Shoutout to Celonis for ranking as the #1 spot on the Top Privately-Held Companies list for the second year in a row.
