Various sources are reporting that 2017 will shape up to be an excellent year for startups seeking funding, which is great news for many NYC area start-ups, founders and would-be entrepreneurs.
Gust – the world’s largest online platform and community for early stage finance recently released their 2016 Startup Funding Trends Mid-Year Report that is showing a bright future for the international startup ecosystem.
Coming out of 2015, the number of funding applications submitted by startups through the Gust platform grew by double digits. In the first half of 2016, 21% more funding applications were submitted that in the second half of 2015, with a 79% increase over the same period one year earlier.
Companies in the full product ready stage and in development stage led the pack of applicants, making up 42.8% and 40.7% respectively.
Silicon Alley Give Silicon Valley a Run for the Money
Funding applications are submitted for across the United States, with New York accounting for 17.2% of funding applications in the first half of 2016 versus 22.1% of the applications coming from California. NC, PA, NJ and OR joined the ranks of the top 10 states with the highest number of funding applications.
The top industries submitting funding applications has remained constant over the last year with Consumer Products & Services holding the lead at 14% followed by Internet Web Services (12.8%) and Healthcare (9.4%) rounding out the top three business sectors.
The Founder Profile
2017 Will be a Strong Year for Venture Capital
According to a report published last month in Tech Crunch the outlook for VC in 2017 is great.
“The building blocks of a better year are in place. Many venture capital firms are flush with cash, start-up valuations have become more reasonable, technology industry M&A is robust and the technology IPO marketing is improving” observed Matt Murphy a managing director of Menlo Ventures, a seed to growth venture capital firm. He continued “Moreover, the obsession of funding unicorns at almost any price – at the expense of smaller startups – has materially wanted. All good news.”
The good news story continues “Most important, venture capital has a good chance of returning, at least in part, to its fundamental roots in the new year. While investors have been infusing unusually huge sums in some of the biggest startups ever, venture historically has been about targeting promising companies early in their formation and betting they have the potential to soar.”
Murphy’s final observation: “The biggest reason for optimism in the venture capital landscape is that venture firms aren’t hurting for cash.”
Buoyed by some billion-dollar-plus funds, 134 venture firms closed funds totaling $22.5 billion in the first half of 2016 alone, a record-setting pace, according to PitchBook.
As the old saying goes “Come on in, the water’s fine” for founders – at least at the start of 2017 in New York City venture swimming pool.