We've had a front row seat to the exciting pace of growth in the innovation sector in and around New York City for more than a dozen years. Working with some of the most exciting sectors, companies and their investors in business today, we’re thrilled to play a role in strengthening the environment for dynamic, innovative companies in New York – and we see it paying off.
The city’s professional and cultural diversity, open community and mentorship mindset, as well as HQ for a significant number of Fortune 500 companies, continue to attract an increasing number of startups.
This summer we teams up with Orrick, Herrington and Sutcliffe LLP and CB Insights to get a better look at the trends in venture in New York. As a result, we produced the New York Venture Capital Almanac. The data presented in this report definitely reflects our experience
and what we see on a day to day basis.
The tech sector locally is having another great year. In fact, based on first half activity, 2013 is on pace to achieve a five year high in deal and funding levels. Yahoo’s $1.1 billion acquisition of Tumblr, New York’s first billion dollar acquisition since Google bought DoubleClick in 2007, was definitely a highlight and Brooklyn’s Makerbot was acquired for $403
million too. Even the suburbs contributed significantly with
Priceline’s $1.8 billion acquisition of Norwalk, CT-based Kayak. New York tech employment continues to grow at a strong rate,
much faster than overall private sector employment, and the
increasing number of startups has contributed significantly to this
growth. Google’s expansion in New York, which now accounts for
10% of its employees as well as about 1,500 engineers, also helps.
We’re seeing an increase in new company formation nationally and
innovation and entrepreneurship are responsible for creating new opportunities, jobs and wealth in every global location where SVB
has an office.
In New York, there will still be challenges, such as finding
enough engineers, and there will, of course, be business cycles,
but a solid foundation has been built here and we are confident
the momentum will continue. The global technology sector is
growing and New York continues to prove it is worthy of its fair