Alley vs. Valley

Is New York’s Startup Scene a ‘One-Trick Pony’?

Not exactly a shutout, is it? (Graphic courtesy of CB Insights)

The latest CB Insights report on venture capital investment just dropped, and we’ve spent the morning digging into the data. Local entrepreneurs might want to sit down, because this is gonna sting a little.

Overall the quarter was a big one, with 812 deals adding up to $8.1 billion. The report points out that’s the biggest single quarter since the dot com days. (And what with Digg and Yahoo dominating the headlines, you’d be forgiven for getting a little confused on the year.) Seed stage investments made up 22 percent of those deals, which fits with our anecdotal sense that startups are springing up like mushrooms after a rainstorm.

In terms of deal volume, New York held onto the number-two spot for the second quarter in a row. A big part of that is digital: The report calls California and New York a “two-headed monster on the internet front,” and points out that “larger funding deals enable Florida and Washington to challenge Massachusetts for the #3 spot.” Read More