According to an article in Crain’s NY, most of VC investments made during the second quarter of 2012 went to California companies. Out of $2.1 billion in total, only $30 million was invested in New York startups, whereas California companies received $1.45 billion. The total amount is an increase of 16% over a year ago.
$30 million in investments that went to New York was a decline of 87% as compared to the same period last year (out of that amount, one-third was invested in Adaptly). This decline can be explained by the fact that New York attracts early tech startups that do not typically receive big investments. As the attention of VCs shifts to more early stage companies, the amount of money received by New York companies will increase. Actually, the number of seed level deals in New York is on the rise: it increased by 14% over the previous quarter. Let’s hope that this trend continues and that New York-based companies will not be compelled to migrate to California just to attract VC capital.
This article is not a legal advice, and was written for general informational purposes only. If you have questions or comments about the article or are interested in learning more about this topic, feel free to contact its author, Arina Shulga. Ms. Shulga is the founder of Shulga Law Firm, P.C., a New York-based boutique law firm specializing in advising individual and corporate clients on aspects of business, corporate, securities, and intellectual property law.