New York startups had another record quarter in venture capital funding in Q3, according to a new report from Gust.
15.6 percent of all applications for VC funding came from New York state, compared with 23 percent for California. New York equalled the bay area powerhouse in the first quarter of the year and led the way in Q2 with 21 percent compared to Silicon Valley’s 17 percent.
New York investments are still growing at a rapid rate and the state remains comfortably in second spot nationally. Florida is the only other state approaching double digits, with a 9.5 percent share of national funding applications.
The number of applications was up slightly from the same period last year, but the capital involved was far greater. In the first three quarters of 2015 New York recorded a massive $5.6 billion in venture capital deals, already surpassing the $5.3 billion raised in 2014. Big third quarter deals like the $200 million invested in Buzzfeed and $100 million in Saavn helped break that record and bring the third quarter total to $1.8, billion according to a report from PWC.
While New York had another stellar quarter, California had a bump in applications, increasing by 42 percent compared to last quarter.
Both nationally and globally there’s no sign of the surge in VC investment slowing down anytime soon.
Startups are also attracting VC funding at earlier stages, often before they even have a minimum viable product. “As the startup economy continues to grow, and seed stage funding continues to be plentiful in a hot market, companies are seeking funding at ever-earlier stages to expedite and optimize development," Gust CEO, David Rose said in a statement.
