Some fresh data out this morning from CB Insights shows New York slipped backed behind Beantown in terms of overall venture capital. But that is largely due to the deals in biotech and medical companies that Boston did. When it comes to tech, and more specifically the web companies Betabeat covers most, New York is still second only to Silicon Valley.
It’s a trend that will likely continue, as CB notes, “California and NY account for 59% of internet VC deals and 66% of funding. Internet investments took over 1/3 of venture dollars in 2011 and Massachusetts fell to a five quarter low on internet deal share.”
The total number of deals and capital invested reached its highest level in a decade, topping even the peaks of the pre-credit crisis 2007-2008. The folks from CB are prediciting a crunch at the series B and C stage, as an ever greater numbe of young companies vie for funding and the funnel narrows to those who can show serious traction. While seed stage reached new highs and series A saw an uptick, later rounds declined.
Fab, Outbrain and Knewton were the big deals in New York over the last quarter, with Imagen Biotech, which works on cures for blindness, rounded out the pack of top funding. Given that Fab has only been working its current company for seven months, it’s astonishing to see the company it’s keeping.
Another interesting note, while Manhattan had the most activity with 61 deals, Brooklyn nabbed five investments worth $7 million in total. Not suprisingly with the explosion of tablets and smartphones, the share of venture going into mobile deals rose compared to more traditional web companies.