‘Silicon Alley,’ the technology industry’s sobriquet for New York City’s startup community, was first coined in the mid 1990s following the influx of media tech companies that emerged in the city. At the time, the term was used to describe the Flatiron neighborhood of Manhattan near Madison Square Park, encompassing the physical corridor that connects Midtown to Lower Manhattan.
While the term is still loosely used to describe New York tech, the boundaries of the original Silicon Alley have stretched, and the tech scene now extends along the length of Manhattan and across the River into Brooklyn and Long Island City.
Not surprisingly, local tech companies are still concentrated around Silicon Alley’s earliest territory, heavily populating the Flatiron, Chelsea, Union Square, Gramercy, Meatpacking and Soho neighborhoods. But as these companies are growing, and subsequently searching for bigger offices and close proximity to mass transit, New York’s tech sector is outgrowing its original home.
Between January 1, 2016 and July 31, 2016, the total amount of venture capital raised among New York tech companies comes to a staggering $3.1 billion, distributed among 166 companies.
In the first half of 2016, the bulk of fundings went to companies headquartered in the heart of Chelsea’s 10001 zip code, anchored by Volkswagen’s $300 million investment in ride-sharing app Gett back in May. In fact, 11 of the 19 companies that raised funding in 10001 secured over $10 million, with Datadog raising $94.5 million and Via raising $100 million, respectively.
Chelsea’s 10011 area followed in close second with a total of $586 million in funding this year. WeWork led the way in this area, with a whopping $430 million Series F at a $16 billion valuation. 10011 included four fundings of $20 million or more, including $22 million for Transfix, $52 million for Knewton and $50 million for Moat.
Third among the city’s zip codes was 10010 in Gramercy, with 25 companies receiving funding rounds. Of these startups, eight raised $20 million or more, including Hometeam, Bauble Bar, Betterment, Persado, Mark 43, Dashlane, Eyeview and Freshly.
The fourth and fifth most-funded zip codes go to 10007 (TriBeCa) and 10016 (Kips Bay) with totals of $254 million and $186 million, respectively. TriBeCa’s total was largely driven by Flatiron Health’s $175 million round in January, securing its place as a leader in cloud-based oncology software. The bulk of 10016’s 16 rounds range between $1 million and $45 million, with Grovo, Whistle Sports, Andela and Matific raking in rounds over $20 million.
Up in Midtown’s 10018 zip code, SundaySky was the area’s largest fundraiser, nabbing a $30 million Series D back in June to power personalized video engagement for big brands.
Half of the funding rounds that happened in Hell’s Kitchen this year (10036) were for over $40 million, including $40 million for Quartet Health, $55 million for VTS and $55 million for InVision. In Soho’s 10013 and 10012 zip codes, the biggest rounds came from dog empire Bark&Co ($60 million) and real estate startup Cadre ($50 million).
The tenth most funded zip code was in the Meatpacking district this year, solidified by Giphy’s $55 million Series C in February.
Top 10 New York City zip codes by funding
10001 (Nomad/Chelsea): $659,233,062
10011 (Chelsea): $585,958,612
10010 (Gramercy): $365,256,465
10007 (TriBeCa): $254,099,998
10016 (Kips Bay): $185,792,256
10018 (Midtown): $173,110,000
10036 (Hell’s Kitchen): $170,800,000
10013 (Soho): $155,664,999
10012 (Soho): $157,630,108
10014 (Meatpacking): $78,100,000
Have a tip? Let us know or follow us on Twitter and LinkedIn.
