We’ve been investing in enterprise tech startups for a decade now and have been tracking the local NYC enterprise ecosystem’s growth through a series of Enterprise Tech in NYC Funding Reports.
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.
NYC enterprise software startups raised $1.2B across 48 deals in 1H23. Compared to 1H22, this is a 61% decrease in funding ($3.2B in 1H22) and 47% decrease in deal count (90 in 1H22).
Even ignoring the massive funding bump in 2021, Series B and beyond financings essentially stalled out in 1H23 with only 11 financings, compared to 64 in 1H22 and 80 in 1H20.
Seed financings held up fairly well and represented the largest Series with 21 deals and 44% of the total 1H23 activity. Annualizing this figure keeps Seed deal activity roughly in line with 2021 and 2022, and significantly ahead of the 21 Seed deals in all of 2019 and 20 Seed deals in all of 2020.
While Series A financing were second largest Series with 16 deals and 33% of total deal activity, they're tracking to decline 36% year over year if you annualize the 1H23 data.
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), Warp ($50M).
To stay up to date on the latest and greatest enterprise software fundings check out our NYC Enterprise Tech Index and sign up for our Enterprise Weekly Newsletters to get more funding news in your inbox weekly.
As always, if you’re thinking about launching an enterprise software or SaaS startup or have already taken the leap, it's never too early to connect with us. We’d love to meet you to learn more about what you’re building, share our best feedback, and plug you into our enterprise community where helpful.
