Tracxn, a leading global SaaS-based market intelligence platform, has released its Annual Report: New York Tech Annual Report 2024. Based on Tracxn’s extensive database, the report provides insights into the New York Tech space.
In 2024, New York tech startups raised $14.9 billion in funding, representing a 16% increase from the $12.9 billion secured in 2023 and a 44% drop compared to the $26.6 billion raised in 2022.
Stage-wise Investment Trends
● Late-Stage Funding: Late-stage investments surged to $6.6 billion in 2024, marking a 43% increase from $4.6 billion in 2023.
● Seed-Stage Funding: Seed-stage investments dropped by 14%, falling to $1.2 billion in 2024 from $1.4 billion in 2023.
● Early-Stage Funding: Early-stage investments surged to $7.1 billion in 2024, marking a 3% increase from $6.9 billion in 2023.
Sectoral Performance
Top-performing sectors in 2024 included Enterprise Applications, FinTech, and HealthTech:
● Enterprise Applications: Funding increased by 30% in 2024 compared to 2023 and 36% drop compared to 2022.
● FinTech: Funding increased by 16% in 2024 compared to 2023 and 54% drop compared to 2022.
● HealthTech: Funding increased by 43% in 2024 compared to 2023 and 16% drop compared to 2022.
Top cities leading the landscape
● New York City-based tech firms accounted for 87.71% of all funding raised by New York tech companies.
● Brooklyn followed at a distant second, contributing 3.93% of the total funding.
Leading Investors
Y Combinator, Techstars and a16z emerged as the top investors in the New York tech ecosystem, actively supporting startups across various stages.
Mergers & Acquisitions
The New York tech ecosystem recorded 171 acquisitions in 2024, down from 178 in 2023. Notable deals include:
● Squarespace acquisition by Permira for $7.2B, the highest-valued deal of the year.
● Sterling’s acquisition by First Advantage for $2.2B.
This data underscores the evolving dynamics of the New York tech ecosystem, reflecting both growth opportunities and challenges across different funding stages, sectors, and regions.
