AGC’s Guide to Digital New York – 2014 Year End Update

2014 was a breakout year for New York VC funding with total funding up 53% YoY. Digital Investments in New York represented 63% of all NY deals and Mobile represented another 19% of all deals. Since 2006, nearly $10.5 billion has been raised for Digital NY companies. Thanks to a particularly strong Q3 in Digital funding and an overall growth in activity throughout the year, New York has further established itself as the most active digital center in the US outside of Silicon Valley. Digital New York VC financing decreased comparatively in Q4 2014. Funding was down 34% versus Q4 2013 and down 62% versus Q3 2014 (Q3 2014 included a $500 million financing for VICE Media). 22 private digital companies raised a combined $436 million. Twelve companies we had already been tracking completed follow-on financings, raising $308 million in total. The largest funding round of the quarter was completed by MongoDB, which raised $100 million. The fourth quarter saw one large M&A – the sale of Fotolia to Adobe for $800 million. This was the second largest exit in Digital NY after Tumblr’s sale to Yahoo! for $1.1 billion in 2013.