Posted on

Big Apple Vs. Bay Area: New York Investors Take Bigger Bite Of U.S. Venture Pie From Silicon Valley


The San Francisco Bay Area, epicenter of the U.S. technology industry, is home to the FANG in FAANG—Facebook, Apple, Netflix and Google—with Apple the most highly valued company in the world, alone worth over $2.4 trillion.  
Subscribe to the Crunchbase Daily
So far this year, the Bay Area accounts for about 37 percent of venture dollars invested in the U.S. The Greater New York Area, by contrast, represents less than half that amount, receiving 17 percent of U.S. venture dollars invested. 
But a Crunchbase News analysis shows that as more growth investors compete with VCs in startup investing, firms from the Big Apple are gaining traction. 
In fact, while Bay Area investors led roughly double the deal volume, as measured by dollar amount, of New York investors between 2016 and 2019, that proportion began to change last year—and by 2021 the dollar amounts led by New York-based investors in U.S. startups is close to equal that of Bay Area investors, according to Crunchbase data. 

Where the dollars go
Of course, the Bay Area and Silicon Valley aren’t just where the investors are. Together, the two leading tech ecosystems also capture more than half—54 percent—of all venture funding into U.S. startups. 

But the New York region is also gaining when looking at not just who is making the investment, but the startups receiving that money. Some of the more highly valued tech companies to go public in recent years boast New York headquarters, including UiPath, Peloton and Compass. 
New York, the U.S.’ financial and news media capital, of course also hosts the major stock exchanges, th …

Read More