moving on up to the east side

The Magic Number for VC Investment in New York Tech? Zipcode 10016


Surprise! The most lucrative neighborhood for getting venture capital deals done is not the tech corridor from DogPatch Labs to the top of Madison Square Park that seems to emanate from Fred Wilson’s office in Union Square. In fact, according to data from the research firm CB Insights, the epicenter is northeast of that, closer to Gilt Groupe’s Park Avenue offices, between 32nd and 33rd Streets. Their zipcode, 10016, happens to be the hottest in the city for securing venture capital.

Maybe it’s a lucky office? Gilt co-founders Alexandra Wilkis Wilson and Alexis Maybank, along with angel investor Doubleclick co-founder Kevin Ryan—and their $270 million in funding—work out of the space formerly home to Right Media, which was successfully sold to Yahoo in 2007.

While SoHo, Union Square and Chelsea are still start-up hubs, CB Insights data shows that a particular stretch from the mid-20s to the 40s on the East Side—covering Kips Bay, Turtle Bay, and Murray Hill—saw 40 VC deals worth a combined $351.8 million since 2009. If you stretch it out to the mid-50s on the East Side, that’s 76 deals amounting to more than $840 million. The numbers were enough to make the New York Post declare that the area they’d like to call Silicon Park (meh?) is giving Silicon Alley a run for its VC money. But is it really?

Read More