Even though the Silicon Valley is the number one spot for venture capitalists, New York City startups have been recently concluding lucrative deals.
According to the New York City Economic Development Corporation, New York city startups closed 1500 deals worth $12 billion last year, which is nearly double the amount in capital investment in 2014.
About 850 deal have closed which is worth $9.1 billion net so far this year.
The corporation has reported that the city has received a lot in tech projects in the field of cybersecurity, blockchain and virtual and artificial reality.
The economist believe that as the market gets mature, the size of the deals get bigger. This wave will also positively affect the job market too and create new employment opportunities for tech and business professionals.
Data and technology company, Enigma, that uses the data for financial-risk management, underwriting and pharmaceutical safety was established in 2011. Hicham Oudghiri announced that the company had raised $95 million to expand its operation and hire more data scientists and machine learning specialists. The company plans to open satellite office outside New York for data sourcing and acquisition. However, the CEO mentions that he couldn’t achieve it all if not being in New York city.
MetLife Inc is one of Enigma’s investors. Its chief digital officer Greg Baxter mentioned that as the number of data grows and it becomes messy, it becomes especially difficult to select the trends the data can be efficiently used.
Another New York company that has closed a lucrative deal is Peloton Interactive Inc. The company makes video-streaming stationary bikes. The company raised $550 million in August. Letgo startup, a mobile classified startup secured $500 million this summer.
Ultimately, these achievements will keep growing if the entrepreneurs are able to sell their companies and invest in new startups .