2017 was a down year for angel/seed funding in NYC! Despite the continued growth in NYC’s startup ecosystem, particularly from eager first-time entrepreneurs, the number of seed deal funded in 2017 declined to 235 from 328 in 2016, a decline of 28%, according to AlleyWatch.
Seed stage funding in NYC declined to $361 million in 2017, from $483 million in 2016, a decline of 25%.
While the data from other markets has not been assembled, I don’t expect NYC is an outlier: 2017 was the year of me-too startups, with companies piling on and overhyping areas like AI and Big Data. Investors saw through the clutter to be more selective in 2017. Median round size increased to $1.25 million, up 25% from $1 million, a sign that investors were more confident concentrating more money in fewer deals.