What follows is a guest post by Astia NYC Vice President, Rob Delman. Welcome to the team, Rob!
Have you been following the story about whether NYC or Boston has more VC seeds deals? It is like debating who is better, the Yankees or the Red Sox (although we all know the answer to that question!)
According to a study by CB insights, when it comes to seed investments by venture capitalists, data suggests NY’s seed venture capital investments are gaining momentum at a faster rate than Massachusetts. Q1 and Q2 2010 saw an increase in seed venture capital investments in both Massachusetts and New York but the growth rate and the absolute number of deals was greater in NY in both quarters as detailed below.
Venture accelerators like Astia are enthusiastic about the data as we love to see an increase of quality deal flow regardless of the geography. This is more validation that small business and entrepreneurship continue to be the catalyst for growth in our country. The recent announcement by the White House and creation of Startup America reinforces our belief that entrepreneurship and small business are the main drivers of job growth and wealth creation.
Astia and Golden Seeds (www.goldenseeds.com) recently shared a booth at the Funding Post NYC Venture Capital and Angel Showcase in NYC where over 30 VC firms and several hundred entrepreneurs met to see if there was a match of interests. The entire scene was spectacular – clean tech, life science, consumer goods, technology and media sectors were all represented. Some of the ideas sounded futuristic but regardless, the energy was overwhelming. One could not help but feel that the economic recovery was going to happen at that very moment in that very room.
So does it really matter if NYC or Boston has more deals or invested capital? Of course not – what really matters is Astia and other great organizations participate in the entrepreneurial revolution that is again sweeping our nation.