New York and New England Q1 Venture Statistics - A Quick Preview
May 23, 2012
We are about to publish our first review of New York transactions. Here is the sneak preview:
With respect to series A deals, New York and New England each had 22 deals in Q1. According to us, there were 223 series A deals nationally. So, NY and NE collectively represented approximately 20% of the national market.
With respect to later stage transactions, there were 25 NY deals and 43 NE deals. Again, according to us there were 368 deals nationally. So collectively NY and NE represent about 18% of the market.
I imagine that the relatively smaller number of later stage deals in New York reflects a number of things. One might be that the boom in NY deals is relatively recent so there may not be as many companies in the pipeline that are ready for a second or later round investment. Another might be that the mix of investment opportunities in New York is more “capital efficient” than in NE (and maybe other places).
With respect to that later point, here is a breakdown of some categories. We categorize deals into one of four categories technology, life science, cleantech and other.
With respect to series A deals in NE in Q1 40% of deals were in the technology category, 14% were in life science and the rest were other. That is there were no cleantech deals. In NY 30% were technology and 70% were other. There were no life science or cleantech deals.
With respect to later stage deals, in NE 37% were life science and 35% were technology. In NY 72% were other and 16% were technology.
I suspect that most of the other deals in NY were companies with revenue models based on advertising revenue.
All this leads to the conclusion that NY is a pretty exciting place for investors. I predict that the upswing in NY deals will continue. Stats over the next few quarters will tell the story.