Finding the best venture capital in NYC while planning your own startup could be a real deal. Sometimes it’s not all about the experience of Venture Capital but also the specific requirements you are looking for are important.
There are hundreds of blogs on the internet that would suggest some of the best New York Venture Capital firms in NYC, however, you feel stuck around. This confusing feeling is normal, and honestly speaking well for your startup too. It allows you to thoroughly do your research and then choose wisely.
However, the process is very tiresome. But, not anymore!
We have prepared some of the best five venture capital in NYC. We also share our method of selection and parameters that are essential for any startup in NYC.
How to Choose the Best Venture Capital Firms in New York City?
Many entrepreneurs do not quite know all the required factors that one should look for in Venture Capital. We have shared all the important points that you should put on your checklist while looking for the right VC firm for your startup.
Criteria you Should Consider While Choosing the Best VC Firm
Credibility
While choosing a suitable VC firm, make sure that the firm falls under the top tier. Meeting this particular requirement would save a lot of time in the future. The bigger the company is, it will be easy to get more financial support when required.
Additionally, the brand name of the firm will bring additional benefits to the users. It can offer more money to you in the future. The leading “angel investors (NYC)” often assist to improve the credibility of your work.
Connections
Entrepreneurs might be looking for a VC to get financial help from them. However, little do they know that a Venture capital firm offers more than that.
Few firms majorly focus on a few types of industry. Therefore, starting with good venture capital would help you to raise funds easily without wasting time. It will assist the investors to target big connections which eventually help to open many opportunities.
Track Record
Evaluating New York venture capital firms is another great way to select. The track record is further classified into three metrics, they are:
- Provide follow-up funding and participate in follow-up rounds on a consistent basis
- Exits (that you are hoping to achieve)
- Founders are well taken care of by this company
The investors you are looking for should have a good reputation. Also, ensure that the reputation of the VC firm would not hamper yours. Be prepared for those times when you might miss a target, how the venture capital firm will act on you then? Will they support you or will it become a nightmare for them?
To conclude, your venture capital must fulfill all your financial dreams, and also make your journey as an entrepreneur easy.
Belief
Professional relationships are more often cold, yet it requires belief to establish a long-lasting professional relationship too. Also, it is important that your VC trusts you and your vision of what you are doing.
Try to understand their perspective too. Ask them why they are funding you and what their expectations are. It will provide you to better understand their vision and work with them as a team.
Alignment
Alignment between you and your VC is one of the important things. It is essential that you should know about your goals and what is the target of the VC. In that way, you would be able to check whether both of you are on the same page or not.
You can also find out what will be the pressure on you and do their skills will help you? All these factors will later decide your relationship with VC. It will also help to understand the demand you need to fulfill.
Autonomy and Availability
It is always best when the board member of VC looks towards you, helps you when you are stuck, and supports you to overcome challenges.
But apart from that, while planning a startup you must have some partner who is available to help you.
Location
Let us make this clear, there will be many meetings. Whether the distance seems pretty fine now, you might travel a lot in the future. Frequent meetings are important when there is some option or new rounds.
Additionally, if your company location is near your VC firm then it would help you to build a good connection between both of you.
Some of the Best Venture Capital in NYC
Greycroft
| Location | New York, Los Angeles |
| Investments | 200+ |
| Exists | 35+ acquisitions |
| Portfolio companies in NYC | Managed by Q, Button, theSkimm, Venmo |
Alan Patricof founded Greycroft in 2006. Before Greycroft, he also founded the largest private equity group in Europe, Apax Partners. Patricof is known for his connections with different big companies, like AOL, Apple Inc., Office Depot, and New York (magazine).
Some of the notable investments of Greycroft are:
- A $14 billion deal was struck in 2013 between PayPal and Braintree
- In 2012, Salesforce purchased Buddy Media for $800 million
- The fundraising round of $63.4 million for Candid was closed in 2019
- Awarded $950 million by Disney in 2014 to Maker Studios
- In 2017, Albertsons purchased Plated.com for $200 million
- As of 2019, Munchery has stopped operating
- In 2019, Osmosis raised a Series A round of $4 million
- Stratum acquires Seleria in 2019
- Awarded $350 million by Nordstrom for Trunk Club in 2014
Union Square Ventures
| Location | New York, Los Angeles |
| Investments | 170+ |
| Exists | 4 IPOs and 15+ acquisitions |
| Portfolio companies in NYC | Stack Overflow, MongoDB, Kickstarter |
It is a venture capital company located in New York City. Fred Wilson founded the firm in 2003 along with the former Executive in Residence with AT&T Venture, Brad Burnham. Since then the firm has made great progress and supported around 130 startups including, Twitter, Etsy, Stripe, Coinbase, Zynga, Tumblr, Stack Overflow, Meetup, Kickstarter, MongoDB, Flurry, and Carta.
Later in 2007, the former president of del.icio.us, Albert Wenger joined the company. And last year, in 2021, some more members connected with the firm as general counsel including Samson Mesele, previously a corporate attorney at Wachtell, Lipton, Rosen & Katz.
AlleyCorp
| Location | New York, Los Angeles |
| Investments | 27+ |
| Exists | 1 IPO and 1 acquisition |
| Portfolio companies in NYC | Business Insider, Gilt Groupe, Zola |
Kevin P. Ryan and Dwight Merriman founded the venture capital firm AlleyCorp in New York in 2008.
Lux Capital
| Location | New York, Los Angeles |
| Investments | 71+ |
| Exists | 2 IPOs and 1 acquisition |
| Portfolio companies in NYC | Hometeam, Pager, Shapeways, Zipdrug |
The New York venture capital firm, Lux Capital, is situated in Silicon Valley and New York City. The company has over $4.0 billion in assets in 2021. Companies included in the company’s portfolio are: 3Scan, AltspaceVR, Anchorage, Anduril, Applied Intuition, Auris, Health, Bright Machines, BrightSky Labs, Cambrios, Clarifai[citation needed], Chronosphere, CloudMedx Inc, Cerulean Pharma, Crystal IS, CyPhy Works, etc.
Insight Venture Partners
| Location | New York, Los Angeles |
| Investments | 162+ |
| Exists | 11 IPOs and 26+ acquisition |
| Portfolio companies in NYC | VTS, Shutterstock |
In 1995, Jeff Horing and Jerry Murdock founded the firm Insight Partners. The firm majorly invests in businesses related to software, the internet, and growth-stage technology.
It has acquired many awards and prizes, including, the Forbes Midas List, the Private Equity International Awards: PEI 300, and Forbes 30 Under 30: Venture Capital.
After discussing five top venture capital in NYC, we have now come to an end of the list. Hopefully, it has helped you to make a decision and pick the suitable venture capital for your business. But, remember to prepare a list of your requirements before hiring any venture capital in NYC and do proper research.
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