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Established New York startups are still pocketing venture capital dollars at a rapid pace, but the pandemic has made it harder for fledgling companies to get off the ground.
Startups in the New York metro area landed $4.7 billion from investors from July through September, a 12% increase from the same period in 2019 and up 9% from last quarter, according to data published on Tuesday by the National Venture Capital Association and Pitchbook. The total represents the most active quarter for venture capital in New York since the start of 2019.
“Low interest rates, healthy public markets and more money flowing into financial markets have given investors confidence that high-growth companies will be well-valued in the public markets, creating a positive trickle-down effect for startups,” reads the report.
But that spending came as the total number of venture investment deals in New York reached a three-year low of 396 for the quarter. Globally, seed and early-stage investment “rapidly declined” last quarter, the Pitchbook and NVCA report noted, with first-time financing for startups reaching a 10-year low last quarter.
“It is really hard right now to be a brand new founder seeking capital, particularly in an industry without traction,” said Amy Coveny, managing partner at Quake …
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