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The 2014 NYC AdTech Venture Capital and Early Stage Funding Report

 
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This week, we take a look at the state of adverting technology venture capital and early stage funding in NYC, from 2011 to 2014. Analyzing some publicly available data from our friends at CrunchBase, we break down national and NYC aggregate statistics for deals in the red hot adtech space by stage of funding (Angel/Seed, Series A, Series B, and Series C+).

QUICK ANALYSIS:

When examining the funding landscape from 2011 to present, the bulk of the increases in investment has come in late stage rounds (C+), while the number of rounds has remained steady. In fact, aggregate funding is down or even from 2011 levels across other rounds, both for New York and nationally.   Nearly, $1.4B was invested in AdTech startups in NYC over the last 3 years and ~30% of that was during the first half of this year. NYC AdTech is thriving, but let’s find out why.

It appears as though there are a number of NYC startups raising, and investors are funding large rounds with the hopes and expectations that liquidity is looming.   Possible reasoning for this rush is regulatory concerns: imminent legislation may be introduced that will severely impair or threaten existing business models. The cost of technology is also falling fast and capital is being deployed quite efficiently, leading to an extremely competitive environment – one where increases in demand may not be outpacing the decreases in rates. A few dominant players may be looking to cement their positions in the final stages of the land grab, armed with new financing.  Consolidation within the space is likely over the longer term.

It seems as though the simplest of adtech startups is now capable of offering advanced technologies that were reserved only for heavily capitalized companies just a few years ago.  On a granular level, many of these offerings serve an undifferentiated product, not worth the switching costs, that offer substandard rates. At the top, sophisticated trading desks, programmed by the brightest on Wall Street, have moved the adtech space into the forefront of the NYC tech scene, meeting the needs of advertisers, agencies, SSPs, DSPs, networks, and the consumer.  It’s just a matter of time before things get more direct.   Whether systematic, programmatic, or algorithmic, the industry is getting more efficient as transparency is becoming of paramount importance, both from a demand and a regulatory standpoint.

 

CLICK HERE TO SEE ALL THE NUMBERS BROKEN DOWN AND SOME PRETTY CHARTS

 

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About the author: Reza Chowdhury

Recognized as a global thought leader in the startup ecosystem, Reza Chowdhury offers more than 15 years experience in emerging technology, which he brings to AlleyWatch as CEO and Founder. Through the course of his career, Reza has had the privilege of working to drive businesses from conception to eventual exit by deploying the acumen gained in his previous roles. His latest professional endeavors have allowed him to work very closely with thriving global technology and startup ecosystem.

Reza is also the founder of New York Startup Lab, which brings technology and knowledge based solutions to the entrepreneurial community with a specific focus on early stage companies. He began his career as securities trader on Wall Street.

Reza is often a featured international speaker, moderator, and judge at numerous events on technology and global entrepreneurship and was a featured presenter at the first Facebook Developer Garage in NYC. Both Reza and the companies he has been involved with have received accolades and recognition from prominent organizations including the fbFund. Reza was has been recognized as one of the 100 most influential people in NYC Tech by TechWeek on several occasions and is a NYC Venture Fellow, a world-class, year-long fellowship program designed to help high-potential entrepreneurs scale their ventures.

Reza is also an advisor to SD Asia and Dublin Globe, two organizations that are fostering the growth of local entrepreneurial ecosystems as well as an Mentor to the Grameenphone Accelerator.

Reza holds an MBA in Finance and Entrepreneurship from Georgetown University and completed his bachelors in Economics at the University at Albany. Reza has also completed certification programs in Private Equity and Venture Capital at Oxford University as well as International Business at New York University.

If you are interested in having Reza Chowdhury speak or moderate at one of your events, please send an email with the details of your event. If you contact us at this email for any reason other than what’s stated above, your correspondence will invariably be deleted.

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