New York Tech Startups See Jump in Funding Activity


Venture-capital firms in 2020 pumped $5.8 billion into New York City enterprise-technology startups, with companies developing risk-management and security, artificial-intelligence and machine-learning, and human-resources technologies among those getting the biggest shares of the investments.

Last year’s investments were up more than 75% from the $3.3 billion VCs put into young New York enterprise-technology firms in 2019, according to a report released Wednesday by enterprise-technology-focused venture-capital firm Work-Bench, which tracks the city’s startups. The number of New York enterprise-tech deals rose to 189 in 2020 from 114 in 2019, according to Work-Bench.

New York is home to 17 tech “unicorns,” or startups valued at $1 billion or more, including UiPath Inc., a robotic-process-automation software maker valued at $10.2 billion, according to the Work-Bench report.

Work-Bench also tracks what it calls the “next guard,” a group of about 25 up-and-coming New York companies that have raised more than $100 million and/or have a valuation between $500 million and $1 billion. Risk and security companies make up almost 40% of this group, AI and machine-learning companies about 20%, and HR tech companies around 15%.

Work-Bench itself has invested in more than 30 predominantly New York-based tech companies, including Cockroach Labs Inc., a database company, and FireHydrant Inc., which sells software that helps operations teams manage and respond to incidents such as website outages.


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