New York City’s economy continues to benefit from the global boom in venture capital investment, according to a new analysis from the New York City Comptroller’s office.
A report released by Comptroller Stringer uses data from Crunchbase – a private company that tracks venture capital worldwide – to measure New York City’s standing among the world’s twenty largest global venture capital markets from 2008 to 2017.
The analysis demonstrates New York City’s continuing ability to attract venture capital investment as well as the breadth and diversity of businesses that attract venture capital – including many well-established sectors, the comptroller’s office said in a release.
The analysis shows New York was one of the top five global destinations for venture capital dollars in 2017. The number of venture capital deals in the city grew by 256 percent, and the amounts invested by 439 percent, since 2008.
The analysis also detailed venture capital’s impact on the New York City economy, as venture capital flows to a wide range of businesses in and outside of the city’s legacy industries of finance, advertising, media, and culture that support roughly 355,000 jobs – building on the city’s existing economic foundations to modernize and reshape the way those industries will do business in the 21st century.
“New York City is the home of innovation and it’s only right that people look to us when they want to invest in technology and business. Our economy works best when people with big ideas can get the financial support and expertise that they need to grow – and that’s what our report shows,” said Stringer in the release. “We have to make sure that all New Yorkers with the idea, talent, and drive have access to new capital and networks, because venture capital doesn’t just go to internet start-ups. To keep building a true five-borough economy for the 21st Century, we need to make sure that New York provides the opportunity and space to grow for everyone, and keep investing in diverse, local talent.”
Venture capital is a type of investment often sought by start-up companies with high growth potential but limited prospects of obtaining traditional bank loans or other types of financing. In exchange for funds, companies provide an ownership stake to investors, who also may take on a management role, with a goal of helping the company expand and succeed, ensuring the investor can profit when they exit the agreement.
As venture capital investments have exploded globally, New York City has held its own. Companies headquartered in the City raised the fifth largest sum of venture capital dollars in 2017 compared to global cities. Only companies headquartered in Beijing, San Francisco, Silicon Valley and Shanghai raised more.
