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THE STATE OF
NEW YORK SEED
Tim Devane, Principal
@tdevane
I
N Y
ABOUT US
2
high conviction, hands-on seed VC
Since our inception in 2010, we’ve invested in New York City. As of 2015, we’re proud to say we
also have a dedicated NYC office to better support the local tech ecosystem.
We believe entrepreneurs here deserve a focused partner at the earliest stage that offers one
great product: a high conviction, hands-on seed investment.
We like to lead, invest truly early, and are dedicated to advancing NYC as a major tech hub.
David Beisel
Jay Acunzo
Rob Go
Tim Devane
Lee Hower
|
ABOUT US
3
high conviction, hands-on seed VC
To date, we’ve invested in NYC-based companies such as:
David Beisel
Jay Acunzo
Rob Go
Tim Devane
Lee Hower
|
acq. MSFT acq. TWTR
acq. GRPN
STEALTH
ABOUT US
4
high conviction, hands-on seed VC
As the one responsible for carrying the NextView banner in New
York City every day, I thought I would share my analysis and
opinion about the state of seed venture in NYC out to our world.
Thanks for taking a look. – Tim (@tdevane)
David Beisel
Jay Acunzo
Rob Go
Tim Devane
Lee Hower
|
o  New York City Sector Spotlights
+  Consumer Goods & Services

+  Food Logistics

+  Media & Publishing
+  FinTech
o  New York City Talent
+ Staffing in NYC
+ "City-Tech Native” Founders
o  New York City Funding Trends
+ Pre-Seed

+ NYC VC: General

+ NYC VC: Seed
 5
TABLE OF CONTENTS
SECTOR SPOTLIGHTS
6
2015 Industries of Note in NYC
FinTechMedia &
Publishing
Food LogisticsConsumer Goods
& Services
CONSUMER GOODS & SERVICES
#1
7
8
When we launched, a lot of people bucketed us as
e-commerce…but we believe our brand can stand
for much more thAn that over a long period.
– Dave Gilboa, Co-Founder, Warby Parker
“
CONSUMER GOODS AND SERVICES: CURRENT TRENDS
9
Brand - Vertical Ownership
•  Companies that intentionally build an attractive, relatable
brand from sourcing to development to fulfillment
•  Helps build customer trust and loyalty
•  Can represent more to customers then the specific
product or service offered
CONSUMER GOODS AND SERVICES: CURRENT TRENDS
10
Brand - Vertical Ownership
•  Companies that intentionally build an attractive, relatable
brand from sourcing to development to fulfillment
•  Helps build customer trust and loyalty
•  Can represent more to customers then the specific
product or service offered.
Consumer Convenience
•  Companies that provide consumers choice and save time
•  Makes ease-of-use a prominent feature of the company
•  Example models include on-demand services, mobile
commerce, home try-on, and flexible subscription
CONSUMER GOODS AND SERVICES: CURRENT TRENDS
11
Brand - Vertical Ownership
•  Companies that intentionally build an attractive, relatable
brand from sourcing to development to fulfillment
•  Helps build customer trust and loyalty
•  Can represent more to customers then the specific
product or service offered.
Consumer Convenience
•  Companies that provide consumers choice and save time
•  Makes ease-of-use a prominent feature of the company
•  Example models include on-demand services, mobile
commerce, home try-on, and flexible subscription
Since 2011, there’s been a Warby Parker effect in NYC à
CONSUMER GOODS: WARBY PARKER EFFECT
combined seed funding raised by the following startups:
2011
Warby Parker
Prescription Eyeglasses 
$1.5M raised
CONSUMER GOODS: WARBY PARKER EFFECT
2011 Harry’s
Shaving
Handy
Home Care Services
Alex & Ani
Everyday Jewelry
BarkBox
Subscription
Pet Products
Warby Parker
Prescription Eyeglasses 
$1.5M raised
$10.2M raised
2012
combined seed funding raised by the following startups:
CONSUMER GOODS: WARBY PARKER EFFECT
2011
Oscar
Insurance
Boxed
Home Goods
Zady
Retail Fashion
Fly Cleaners
On-Demand Laundry
Nice Laundry
Everyday Basics
Bombfell
Subscription Garments
Grand Street
Artisanal Electronics
Boll & Branch
Bedding Linens
	
  
Harry’s
Shaving
Handy
Home Care Services
Alex & Ani
Everyday Jewelry
BarkBox
Subscription
Pet Products
Warby Parker
Prescription Eyeglasses 
$1.5M raised
$10.2M raised
$47.5M raised
2012
2013
combined seed funding raised by the following startups:
CONSUMER GOODS: WARBY PARKER EFFECT
2011
Oscar
Insurance
Boxed
Home Goods
Zady
Retail Fashion
Fly Cleaners
On-Demand Laundry
Nice Laundry
Everyday Basics
Bombfell
Subscription Garments
Grand Street
Artisanal Electronics
Boll & Branch
Bedding Linens
	
  
Harry’s
Shaving
Handy
Home Care Services
Alex & Ani
Everyday Jewelry
BarkBox
Subscription
Pet Products
Warby Parker
Prescription Eyeglasses 
$1.5M raised
$10.2M raised
$47.5M raised
$79.5M raised
2012
2013
2014
combined seed funding raised by the following startups:
Casper
Mattresses 
Spring
mCommerce
Jet
Home & Personal Goods
Greats
Shoes
Perch
Workspace Furniture
Hickies
Shoelaces
Viyet
Luxury Furniture 
Beauty Booked
Stylist Booking
Kaufman Mercantile
Luxury Personal Items
Dagne Dover
Hand Bags
Parcel
On-Demand Delivery Service
…SINCE JANUARY 2014
16
$155M
…SINCE JANUARY 2014
17
in seed capital invested in brand-first,
convenience-first, consumer goods &
services startups founded in NYC.
$155M
…SINCE JANUARY 2014
18
$2.1M
median round size:
in seed capital invested in brand-first,
convenience-first, consumer goods &
services startups founded in NYC.
$155M
…SINCE JANUARY 2014
19
$2.1M
median round size:
4
avg. team size:
in seed capital invested in brand-first,
convenience-first, consumer goods &
services startups founded in NYC.
$155M
…SINCE JANUARY 2014
20
$2.1M
median round size:
4
avg. team size:
2015 EXPLOSION…
in seed capital invested in brand-first,
convenience-first, consumer goods &
services startups founded in NYC.
CONSUMER GOODS & SERVICES: SUMMARY
New Yorkers have come to expect everything on-demand:
New York is the destination for many major consumer brands:
4.4 million Uber pickups per month, $150 million spent annually on laundry delivery
J.Crew, Rocawear, Revlon, Barnes & Noble, Calvin Klein, Estee Lauder, Macy’s, Modell’s
21
*Source: NPD Group Market Research; Publically Available Data
THE NYC MARKET TODAY
CONSUMER GOODS & SERVICES: SUMMARY
22
THE NYC MARKET TOMORROW
•  How many meaningful brands do consumers have the
space for in their day-to-day?
•  How many services have scalable unit economics to
support an on-demand model?
Continued seed investment in consumer daily goods and
services companies founded in New York City, pitched as
“Warby Parker for X.”
Outstanding questions include:
CONSUMER GOODS & SERVICES: SUMMARY
23
THE NYC MARKET TOMORROW
•  How many meaningful brands do consumers have the
space for in their day-to-day?
•  How many services have scalable unit economics to
support an on-demand model?
Continued seed investment in consumer daily goods and
services companies founded in New York City, pitched as
“Warby Parker for X.”
Outstanding questions include:
For a window into how NextView analyzes consumer, check out David Beisel’s
Where To Look For The Next Consumer Startup Unicorn
.	
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FOOD LOGISTICS
#2
24
FOOD LOGISTICS: SHIFTING ONLINE
25
Total Meal Orders in the U.S. by Phone vs. Online
2010 2011 2012 2013 2014 2015
Telephone Internet
33%
67% 61%
44% 47%22%
78%
27%
73%
39%
56% 53%
Source: NDP Group Market Research; Trends and Analysis
26
21.7Mworkday lunches every
week in Manhattan alone
Source: U.S. Census Data, NYC.gov Population Reports and Analysis 
FOOD LOGISTICS: NYC A TANTALIZING MARKET
27
21.7Mworkday lunches every
week in Manhattan alone
NYC residents report not
regularly cooking at home
Source: U.S. Census Data, NYC.gov Population Reports and Analysis 
4.7M
FOOD LOGISTICS: NYC A TANTALIZING MARKET
28
21.7M
5.8 meals per week
workday lunches every
week in Manhattan alone
NYC residents report not
regularly cooking at home
per resident not prepared at home across all boroughs
Source: U.S. Census Data, NYC.gov Population Reports and Analysis 
4.7M
FOOD LOGISTICS: NYC A TANTALIZING MARKET
29
We thought the unique value proposition
(in food) was to build a business
entirely around delivery.
- Caleb Merkl, Co-Founder, Maple
“
2013 2014 2015
Capital ($M) Deals
FOOD LOGISTICS: VC INVESTMENT IN NYC
30
$86
24
$21
$483
From 2013 to 2015, annual venture capital investment in meal and food
delivery startups over the same period has increased 30x.
8
Source: NextView Ventures Internal Analysis, Source Data: Mattermark, Crunchbase 
13
FOOD LOGISTICS: NYC STARTUP LANDSCAPE 
31
Delivery Logistics
Homer Logistics
BringMeThat
Restaurant Delivery
Arcade
FoodToEat
CityLunch Club
Stadium
Push For Pizza
FoodToEat
FoodieforAll
BentoBox
Grocer – Speciality
Aloha
OurHarvest
Mouth Foods
Try The World
Mercato
FreshNation
Delivery Only
Maple
Morsel
Kettlebell Kitchen
Portable Chef
Home Cooked
Homemade
Umi
Cookunity
EatInChef
The Oliver Weston
Meal Kits
Blue Apron
Plated
Freshly
HelloFresh
HungryRoot
Sakara Life
GreenBlender
FOOD LOGISTICS: SUMMARY
32
The New York market can be a trap for food and meal delivery startups as
the population density can create outsized order and revenue growth that
is difficult to replicate in additional cities as the company expands.
FOOD LOGISTICS: SUMMARY
Areas of opportunity for improving the model are:

+  Streamlining the local delivery network
+  Nuanced logistics management software
+  Visual discovery products & marketing (photo + video)
+  Mobile demand generation
33
The New York market can be a trap for food and meal delivery startups as
the population density can create outsized order and revenue growth that
is difficult to replicate in additional cities as the company expands.
FOOD LOGISTICS: SUMMARY
Areas of opportunity for improving the model are:

+  Streamlining the local delivery network
+  Nuanced logistics management software
+  Visual discovery products & marketing (photo + video)
+  Mobile demand generation
34
The New York market can be a trap for food and meal delivery startups as
the population density can create outsized order and revenue growth that
is difficult to replicate in additional cities as the company expands.
Food logistics is as much a hustler’s market as any and is therefore
particularly apt for entrepreneurs with operational execution and
customer acquisition advantages or superpowers within a founding team.
MEDIA & PUBLISHING
#3
35
36
As far as our ability to build an audience, New
York is truly the most creative city in the
world. I don’t think there’s another city that
could make Tumblr what it is.
- David Karp, Founder, Tumblr
“
MEDIA & PUBLISHING: CONSISTENT NYC FUNDING
37
4-Year Total:
$923M
Source: NextView Internal Analysis; Data Source: Mattermark; Graph excluding single rounds above $50M and all-Ad Tech Companies
Annual VC investment in early-stage media startups based in NYC
$126M
$195M
$326M
$274M
2012
2013
2014
2015
38
MEDIA & PUBLISHING: THEMATIC DRIVERS – AUDIENCE
39
Niche Content
DailyWorth
Panna
Greatist
MindBodyGreen
PureWow
AtlasObscura
Food52
The Dodo
Aplus
Players' Tribune
Fatherly
MEDIA & PUBLISHING: THEMATIC DRIVERS – AUDIENCE
40
Niche Content Young Voices
DailyWorth
Panna
Greatist
MindBodyGreen
PureWow
AtlasObscura
Food52
The Dodo
Aplus
Players' Tribune
Fatherly
Mic
TheSkimm
Bustle
TheMuse
SpoonUniversity
EliteDaily
The Infatuation
Genius
Hardbound
+
MEDIA & PUBLISHING: THEMATIC DRIVERS – AUDIENCE
41
Niche Content Young Voices New Audience
DailyWorth
Panna
Greatist
MindBodyGreen
PureWow
AtlasObscura
Food52
The Dodo
Aplus
Players' Tribune
Fatherly
Mic
TheSkimm
Bustle
TheMuse
SpoonUniversity
EliteDaily
The Infatuation
Genius
Hardbound
+ =
Rapid
engagement
150M monthly
active readers
MEDIA & PUBLISHING: THEMATIC DRIVERS – AUDIENCE
42
MEDIA & PUBLISHING: THEMATIC DRIVERS – TECH/TACTICS
43
MEDIA & PUBLISHING: THEMATIC DRIVERS – TECH/TACTICS
RebelMouse
Honey
Versa
Point
AuthorBee
Newsela
This.
Social Curation
44
RebelMouse
Honey
Versa
Point
AuthorBee
Newsela
This.
Vizo News
BreakingMedia
Social Curation
Quick
Consumption
MEDIA & PUBLISHING: THEMATIC DRIVERS – TECH/TACTICS
45
RebelMouse
Honey
Versa
Point
AuthorBee
Newsela
This.
Vizo News
BreakingMedia
Social Curation
Quick
Consumption
MEDIA & PUBLISHING: THEMATIC DRIVERS – TECH/TACTICS
Discovery
WildCard
Hullabalu
Fresco News
Readly
Mobile-First
46
RebelMouse
Honey
Versa
Point
AuthorBee
Newsela
This.
Vizo News
BreakingMedia
Social Curation
Quick
Consumption
MEDIA & PUBLISHING: THEMATIC DRIVERS – TECH/TACTICS
Discovery
WildCard
Hullabalu
Fresco News
Readly
Mobile-First
NowThisNews
Wibbitz
Gimlet Media
OverCast
MoLabs
Audio/Video
Consumption
47
RebelMouse
Honey
Versa
Point
AuthorBee
Newsela
This.
Vizo News
BreakingMedia
Social Curation
Quick
Consumption
MEDIA & PUBLISHING: THEMATIC DRIVERS – TECH/TACTICS
Discovery
WildCard
Hullabalu
Fresco News
Readly
Mobile-First
NowThisNews
Wibbitz
Gimlet Media
OverCast
MoLabs
Audio/Video
Consumption
online audiences
shifting their
consumption
behavior
=
MEDIA & PUBLISHING: ECOSYSTEM THAT NURTURES
48
NYC is the home of the media industry and has created a startup-friendly ecosystem,
with media-focused incubators, investors, and studios present. The larger players
have also exhibited a consistent appetite for acquiring young media startups.
MEDIA & PUBLISHING: ECOSYSTEM THAT NURTURES
49
$285M invested Since ‘13 Continued Support
From Betaworks
NYTimes R&D Lab Comcast’s Venture Arm
9 Acquisitions since ‘12
8 Acquisitions since ‘12
7 Acquisition since ‘13
FOSTERING NEW INNOVATION APPETITES FOR ACQUISITION
5 Acquisitions since ‘14
NYC is the home of the media industry and has created a startup-friendly ecosystem,
with media-focused incubators, investors, and studios present. The larger players
have also exhibited a consistent appetite for acquiring young media startups.
MEDIA & PUBLISHING: ANTICIPATING MORE M&A
50
Newly established media giants in NYC represent a field of tech-forward, high-growth
organizations with significant capital for acquisitions as they continue to seek
mainstream audience saturation and increased engagement stats
MEDIA & PUBLISHING: ANTICIPATING MORE M&A
51
14 acquisitions and
$1.5B Raised since ‘11
Newly established media giants in NYC represent a field of tech-forward, high-growth
organizations with significant capital for acquisitions as they continue to seek
mainstream audience saturation and increased engagement stats
FINTECH
#4
52
53
There are hundreds of startups with a lot
of brains and money working on various
alternatives to traditional banking.
- Jamie Dimon, CEO, JP Morgan
“
2012 2013 2014 2015
Accounting
 Markets
 Wealth Management
 Payments
 Lending
 Risk & Security 
 Insurance
FINTECH: VC DEALS BY FINTECH SUBSECTOR, ‘12-‘15
54
24%
23%
12%
17%
12%
15% 24%
14%
16%
15%
18%
28%
33%
28%
21%
12%
8%
14%
21%
24%
5%
4%
2%
2%
2%
2%
3%
Source: NextView Ventures Internal Analysis; Mattermark
2012 2013 2014 2015
Accounting
 Markets
 Wealth Management
 Payments
 Lending
 Risk & Security 
 Insurance
FINTECH: VC DEALS BY FINTECH SUBSECTOR, ‘12-‘15
55
24%
23%
12%
17%
12%
15% 24%
14%
16%
15%
18%
28%
33%
28%
21%
12%
8%
14%
21%
24%
5%
4%
2%
2%
2%
2%
3%
Source: NextView Ventures Internal Analysis; Mattermark
49 DEALS
71 DEALS
85 DEALS
96 DEALS
FINTECH: THE CITY EMBRACES BITCOIN
56
October
2015
January
2014
July
2014
June
2015
FINTECH: THE CITY EMBRACES BITCOIN
57
October
2015
January
2014
July
2014
June
2015
The Bitcoin Center NYC opens on Wall Street as
a crypto-currency education, advocacy, and
community development organization
FINTECH: THE CITY EMBRACES BITCOIN
58
October
2015
January
2014
July
2014
June
2015
The NYC Taxi and Limousine
Commission adopts Bitcoin payment
for yellow cab rides
FINTECH: THE CITY EMBRACES BITCOIN
59
October
2015
January
2014
July
2014
June
2015
New York becomes first state to issue
comprehensive rules and guidelines
for regulating digital currency firms
FINTECH: THE CITY EMBRACES BITCOIN
60
October
2015
January
2014
July
2014
June
2015
Barry Silbert launches the Digital
Currency Group in New York to invest in
Bitcoin and blockchain startups
FINTECH: THE CITY EMBRACES BITCOIN
61
Recently Seed-Funded NYC Bitcoin Startups:
October
2015
January
2014
July
2014
June
2015
FINTECH: CONTINUED UNBUNDLING OF THE BANK
62
A map of the NYC FinTech startups building for a specific financial service
(the majority of which are traditionally provided by a bank)
FINTECH: CONTINUED UNBUNDLING OF THE BANK
63
Graphic via letstalkpayments.com, 12.15.15 
A map of the NYC FinTech startups building for a specific financial service
(the majority of which are traditionally provided by a bank)
64
PLENTY OF QUESTIONS REMAIN
FINTECH: SUMMARY
65
1.  Will mainstream consumers begin to trust the startup robo-bank and
algorithm more than human wealth managers and bank tellers?
2. Will the financial establishment in New York incubate and foster startup
innovators within their industry … or view them competitively and push back?
3.  Will the transparency and performance of new consumer finance products
and services outweigh the convenience of the all-in-one retail banking
incumbent?
4.  How does the decrease of human-powered exchange and asset trading
contribute to an overall contraction in the financial services industry? 
PLENTY OF QUESTIONS REMAIN
FINTECH: SUMMARY
66
1.  Will mainstream consumers begin to trust the startup robo-bank and
algorithm more than human wealth managers and bank tellers?
2. Will the financial establishment in New York incubate and foster startup
innovators within their industry … or view them competitively and push back?
3.  Will the transparency and performance of new consumer finance products
and services outweigh the convenience of the all-in-one retail banking
incumbent?
4.  How does the decrease of human-powered exchange and asset trading
contribute to an overall contraction in the financial services industry? 
PLENTY OF QUESTIONS REMAIN
FINTECH: SUMMARY
NextView tends towards deep analysis of FinTech. For an example, check out
Lee Hower’s long-term view of Square, published just ahead of their recent IPO.
.	
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STARTUP TALENT
#5
67
STARTUP TALENT: NYC BY THE NUMBERS
68
STARTUP TALENT: NYC BY THE NUMBERS
3.1 Millionof the city’s residents have an
undergraduate college degree
69
Source: U.S. Small Business Administration, U.S. Census Bureau, U.S. Bureau of Labor Statistics
STARTUP TALENT: NYC BY THE NUMBERS
3.1 Millionof the city’s residents have an
undergraduate college degree
70
Source: U.S. Small Business Administration, U.S. Census Bureau, U.S. Bureau of Labor Statistics 
190,000small business employers –
second-most of any U.S. city
STARTUP TALENT: NYC BY THE NUMBERS
3.1 Millionof the city’s residents have an
undergraduate college degree
71
Source: U.S. Small Business Administration, U.S. Census Bureau, U.S. Bureau of Labor Statistics 
300,000engineering, programming and
mathematics jobs
190,000small business employers –
second-most of any U.S. city
STARTUP TALENT: NYC BY THE NUMBERS
3.1 Millionof the city’s residents have an
undergraduate college degree
72
Source: U.S. Small Business Administration, U.S. Census Bureau, U.S. Bureau of Labor Statistics 
3.6 Millionresidents are 30 years old or younger
300,000engineering, programming and
mathematics jobs
190,000small business employers –
second-most of any U.S. city
STARTUP TALENT: NYC’S SURPLUS
73
Graduate and undergraduate schools at universities and colleges
as well as vocational design and technical programs based in New
York City produce local engineering and product talent every year.
They include:
STARTUP TALENT: NYC’S SURPLUS
74
NYC is also the epicenter of many industries with countless tech-
savvy employees currently working for legacy companies. This
presents seed companies with a perpetual pool of future hires as
operators and executives, as well as advisors.
These industries include:
FINANCE MEDIA FASHION
ADVERTISING CONSULTINGSPORTS
INSURANCEREAL ESTATE
LAW TELECOM
STARTUP TALENT: NYC’S SURPLUS
75
NYC is also the epicenter of many industries with countless tech-
savvy employees currently working for legacy companies. This
presents seed companies with a perpetual pool of future hires as
operators and executives, as well as advisors.
These industries include:
This dynamic is particularly helpful during a growth
period for a startup that now needs to scale the team.
FINANCE MEDIA FASHION
ADVERTISING CONSULTINGSPORTS
INSURANCEREAL ESTATE
LAW TELECOM
STARTUP TALENT: CITY-TECH NATIVE FOUNDERS
76
City-Tech Natives: First-time founders who came up in the NYC ecosystem.
Also contributing to a strong and growing ecosystem:
STARTUP TALENT: CITY-TECH NATIVE FOUNDERS
77
Also contributing to a strong and growing ecosystem:
+  Knows the playbook for entrepreneurial success from being
early employee at high growth startup(s)
+  Years of patience and discipline in absorbing experience and
knowledge now unleashed as he/she founds NewCo

+  Often has a chip on his/her shoulder and something to prove
City-Tech Natives: First-time founders who came up in the NYC ecosystem.
The high-growth companies of this current cycle in NYC –
Tumblr, Makerbot, Foursquare, Buzzfeed, MongoDB, Etsy, etc. –
Have created a critical mass of talented hackers and designers.
We believe many of the great NYC companies in this next wave
will be founded by people who grew up in the first wave.
- Nick Chirls, Partner, Notation Capital
“
78
STARTUP TALENT: CITY-TECH’S NEXT WAVE
79
Poncho
Kuan Huang
(Hatch Labs)
Zola
Shan-Lyn Ma
(Chloe & Isabel, Gilt Groupe)
Electric Objects
Jake Levine
(Digg, Ladders)
Andrew Lister
(Foursquare)
Dasher
Mike Rothman
(Thrillist)
Fatherly
Abacus
Ted Power
(Foursquare)
Squad
Adam Liebman
(SinglePlatform)
Matt Hackett
(Tumblr)
beme
Brian Tobal
(Thinkful, Boundless)
Hickory
Vianney Brandicourt
(Spotify, Foursquare)
Nestie
Dan Reich
(Lotame, BuddyMedia)
Troops
Scott Britton
(SinglePlatform)
Jen Rubio
(Warby Parker)
Steph Korey
(Warby Parker)
Josh Goldstein
(Bondsy)
Underdog
Chris Muir
(Hyperpublic)
Away
(An obviously non-exhaustive list.)
NYC VENTURE TRENDS
#6
80
81
PRE-SEED: JUST ENOUGH $ TO LAUNCH
82
A pre-seed is an early round of financing
designed to help a company achieve
certain intermediate milestones prior to
the magic combination of strong product
market fit and meaningful traction.
- Rob Go, Partner, NextView
“
PRE-SEED: MAKING SENSE OF THE TREND
PRE-SEED: IN CONTEXT
83
Inception Product-Market Fit Scalable Growth
SEED
SERIES A
PRE-SEED
PRE-SEED: IN CONTEXT
84
Inception Product-Market Fit Scalable Growth
SEED
SERIES A
PRE-SEED
WHAT ARE PRE-SEEDS AND WHY DO THEY EXIST?
We believe this is a crucial topic to understand as a founder.
To help, here are two deeper dives into pre-seeds:
HOW NEXTVIEW APPROACHES PRE-SEED DEALS
85
2014 2015
The pre-seed phenomenon is pronounced in a New York ecosystem with
comparatively fewer funding sources and less available capital. With traditional seed
rounds decreasing as early financings begin to inflate and resemble Series A rounds,
smaller funds and micro-VCs look to pre-seed rounds for early ownership. 

Percent Change in # of VC Deals by Stage in NYC
+ 41%
- 37%
+ 10%
PRE-SEED: THE FLATTENING OF SEED IN NEW YORK
Pre-Seed
Institutional
Seed
Series A
or later
86
PRE-SEED: SUMMARY
Entrepreneurs need
smaller financing
rounds ahead of an
initial product launch
Those early-stage investors
who get priced out of
instiutional seed or Series A
rounds need to invest
earlier for ownership
Pre-Seed
Increase
in NYC
NYC 2015: THE YEAR IN VENTURE
#7
87
NYC: VC INVESTMENT 2015 
88
Etsy
Business Insider
Tapad
LearnVest
Sunrise*
IPO
$442M
$360M
$250M
$100M
* Sunrise was a NextView Ventures seed investment; Source: NextView Internal Analysis; Mattermark; CBInsights
NOTABLE EXITS
NYC: VC INVESTMENT 2015 
89
NYC:
$7.7 Billion
Global
VC 6.2%
NOTABLE EXITS NYC VC AS % OF GLOBAL
* Sunrise was a NextView Ventures seed investment; Source: NextView Internal Analysis; Mattermark; CBInsights
Etsy
Business Insider
Tapad
LearnVest
Sunrise*
IPO
$442M
$360M
$250M
$100M
NYC: VC INVESTMENT 2015 
90
NYC:
$7.7 Billion
Global
VC 6.2%
NOTABLE EXITS NYC VC AS % OF GLOBAL
0	
  
50	
  
100	
  
150	
  
200	
  
250	
  
0	
  
200000000	
  
400000000	
  
600000000	
  
800000000	
  
1E+09	
  
1.2E+09	
  
1.4E+09	
  
1.6E+09	
  
1.8E+09	
  
2E+09	
  
b2b Software 
 non-Software
b2b Services
b2c Software 
 Consumer
Goods & Services
Media &
Publishing
Healthcare &
Pharma
FinTech
 Insurance
 Housing & Travel
Capital ($MM)
 Deals
1.75B
	
  	
  	
  	
  207	
  	
  	
  
108
1.01B
 134
745
60
643
 640
82
427
41
401
73
23
323
31
276
MOST-FUNDED SECTORS
* Sunrise was a NextView Ventures seed investment; Source: NextView Internal Analysis; Mattermark; CBInsights
Etsy
Business Insider
Tapad
LearnVest
Sunrise*
IPO
$442M
$360M
$250M
$100M
NYC: SEED 2015 
91*Seed representing rounds <$4.5M; **NextView Ventures portfolio company | Source: NextView Ventures Internal Analysis; Mattermark; Crunchbase; Angelist
175 SEED-STAGE DEALS*
$291 MILLION IN CAPITAL
NYC: SEED 2015 
92*Seed representing rounds <$4.5M; **NextView Ventures portfolio company | Source: NextView Ventures Internal Analysis; Mattermark; Crunchbase; Angelist
175 SEED-STAGE DEALS*
$291 MILLION IN CAPITAL
NOTABLE SERIES A ROUNDS (POST-SEED)
Managed By Q: $15M
Pager: $14M
x.ai: $9.2M
Paintzen**: $7.2M
TalkSpace: $9.5M
Artivest: $15M Button: $12M
Reserve: $15M
NYC: SEED 2015 
93*Seed representing rounds <$4.5M; **NextView Ventures portfolio company | Source: NextView Ventures Internal Analysis; Mattermark; Crunchbase; Angelist
175 SEED-STAGE DEALS*
$291 MILLION IN CAPITAL
NOTABLE SERIES A ROUNDS (POST-SEED)
3%
97%
SEED AS % OF CAPITAL
24%
76%
SEED AS % OF DEALS
Managed By Q: $15M
Pager: $14M
x.ai: $9.2M
Paintzen**: $7.2M
TalkSpace: $9.5M
Artivest: $15M Button: $12M
Reserve: $15M
94
IN THE END: BUILD IN NYC
New York. It was an adult portion. It was an adult dose.
So it took a couple of trips to get into it. You just go in the first
time and you get your ass kicked and you take off. As soon as it
heals up, you come back and you try it again. Eventually…
You fall right in love with it.
- Levon Helm
“
I NY
95
THANK YOU
For more insights for seed-stage startups, subscribe to
our weekly email, sharing resources & stories about
gaining startup traction
with insights from companies like these:
SUBSCRIBE
(We’ll auto-respond with our most popular resources)
@tdevane @NextVIewVC|

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The State of NYC Seed - NextView

  • 1. THE STATE OF NEW YORK SEED Tim Devane, Principal @tdevane I N Y
  • 2. ABOUT US 2 high conviction, hands-on seed VC Since our inception in 2010, we’ve invested in New York City. As of 2015, we’re proud to say we also have a dedicated NYC office to better support the local tech ecosystem. We believe entrepreneurs here deserve a focused partner at the earliest stage that offers one great product: a high conviction, hands-on seed investment. We like to lead, invest truly early, and are dedicated to advancing NYC as a major tech hub. David Beisel Jay Acunzo Rob Go Tim Devane Lee Hower |
  • 3. ABOUT US 3 high conviction, hands-on seed VC To date, we’ve invested in NYC-based companies such as: David Beisel Jay Acunzo Rob Go Tim Devane Lee Hower | acq. MSFT acq. TWTR acq. GRPN STEALTH
  • 4. ABOUT US 4 high conviction, hands-on seed VC As the one responsible for carrying the NextView banner in New York City every day, I thought I would share my analysis and opinion about the state of seed venture in NYC out to our world. Thanks for taking a look. – Tim (@tdevane) David Beisel Jay Acunzo Rob Go Tim Devane Lee Hower |
  • 5. o  New York City Sector Spotlights +  Consumer Goods & Services +  Food Logistics +  Media & Publishing +  FinTech o  New York City Talent + Staffing in NYC + "City-Tech Native” Founders o  New York City Funding Trends + Pre-Seed + NYC VC: General + NYC VC: Seed 5 TABLE OF CONTENTS
  • 6. SECTOR SPOTLIGHTS 6 2015 Industries of Note in NYC FinTechMedia & Publishing Food LogisticsConsumer Goods & Services
  • 7. CONSUMER GOODS & SERVICES #1 7
  • 8. 8 When we launched, a lot of people bucketed us as e-commerce…but we believe our brand can stand for much more thAn that over a long period. – Dave Gilboa, Co-Founder, Warby Parker “
  • 9. CONSUMER GOODS AND SERVICES: CURRENT TRENDS 9 Brand - Vertical Ownership •  Companies that intentionally build an attractive, relatable brand from sourcing to development to fulfillment •  Helps build customer trust and loyalty •  Can represent more to customers then the specific product or service offered
  • 10. CONSUMER GOODS AND SERVICES: CURRENT TRENDS 10 Brand - Vertical Ownership •  Companies that intentionally build an attractive, relatable brand from sourcing to development to fulfillment •  Helps build customer trust and loyalty •  Can represent more to customers then the specific product or service offered. Consumer Convenience •  Companies that provide consumers choice and save time •  Makes ease-of-use a prominent feature of the company •  Example models include on-demand services, mobile commerce, home try-on, and flexible subscription
  • 11. CONSUMER GOODS AND SERVICES: CURRENT TRENDS 11 Brand - Vertical Ownership •  Companies that intentionally build an attractive, relatable brand from sourcing to development to fulfillment •  Helps build customer trust and loyalty •  Can represent more to customers then the specific product or service offered. Consumer Convenience •  Companies that provide consumers choice and save time •  Makes ease-of-use a prominent feature of the company •  Example models include on-demand services, mobile commerce, home try-on, and flexible subscription Since 2011, there’s been a Warby Parker effect in NYC à
  • 12. CONSUMER GOODS: WARBY PARKER EFFECT combined seed funding raised by the following startups: 2011 Warby Parker Prescription Eyeglasses $1.5M raised
  • 13. CONSUMER GOODS: WARBY PARKER EFFECT 2011 Harry’s Shaving Handy Home Care Services Alex & Ani Everyday Jewelry BarkBox Subscription Pet Products Warby Parker Prescription Eyeglasses $1.5M raised $10.2M raised 2012 combined seed funding raised by the following startups:
  • 14. CONSUMER GOODS: WARBY PARKER EFFECT 2011 Oscar Insurance Boxed Home Goods Zady Retail Fashion Fly Cleaners On-Demand Laundry Nice Laundry Everyday Basics Bombfell Subscription Garments Grand Street Artisanal Electronics Boll & Branch Bedding Linens   Harry’s Shaving Handy Home Care Services Alex & Ani Everyday Jewelry BarkBox Subscription Pet Products Warby Parker Prescription Eyeglasses $1.5M raised $10.2M raised $47.5M raised 2012 2013 combined seed funding raised by the following startups:
  • 15. CONSUMER GOODS: WARBY PARKER EFFECT 2011 Oscar Insurance Boxed Home Goods Zady Retail Fashion Fly Cleaners On-Demand Laundry Nice Laundry Everyday Basics Bombfell Subscription Garments Grand Street Artisanal Electronics Boll & Branch Bedding Linens   Harry’s Shaving Handy Home Care Services Alex & Ani Everyday Jewelry BarkBox Subscription Pet Products Warby Parker Prescription Eyeglasses $1.5M raised $10.2M raised $47.5M raised $79.5M raised 2012 2013 2014 combined seed funding raised by the following startups: Casper Mattresses Spring mCommerce Jet Home & Personal Goods Greats Shoes Perch Workspace Furniture Hickies Shoelaces Viyet Luxury Furniture Beauty Booked Stylist Booking Kaufman Mercantile Luxury Personal Items Dagne Dover Hand Bags Parcel On-Demand Delivery Service
  • 17. $155M …SINCE JANUARY 2014 17 in seed capital invested in brand-first, convenience-first, consumer goods & services startups founded in NYC.
  • 18. $155M …SINCE JANUARY 2014 18 $2.1M median round size: in seed capital invested in brand-first, convenience-first, consumer goods & services startups founded in NYC.
  • 19. $155M …SINCE JANUARY 2014 19 $2.1M median round size: 4 avg. team size: in seed capital invested in brand-first, convenience-first, consumer goods & services startups founded in NYC.
  • 20. $155M …SINCE JANUARY 2014 20 $2.1M median round size: 4 avg. team size: 2015 EXPLOSION… in seed capital invested in brand-first, convenience-first, consumer goods & services startups founded in NYC.
  • 21. CONSUMER GOODS & SERVICES: SUMMARY New Yorkers have come to expect everything on-demand: New York is the destination for many major consumer brands: 4.4 million Uber pickups per month, $150 million spent annually on laundry delivery J.Crew, Rocawear, Revlon, Barnes & Noble, Calvin Klein, Estee Lauder, Macy’s, Modell’s 21 *Source: NPD Group Market Research; Publically Available Data THE NYC MARKET TODAY
  • 22. CONSUMER GOODS & SERVICES: SUMMARY 22 THE NYC MARKET TOMORROW •  How many meaningful brands do consumers have the space for in their day-to-day? •  How many services have scalable unit economics to support an on-demand model? Continued seed investment in consumer daily goods and services companies founded in New York City, pitched as “Warby Parker for X.” Outstanding questions include:
  • 23. CONSUMER GOODS & SERVICES: SUMMARY 23 THE NYC MARKET TOMORROW •  How many meaningful brands do consumers have the space for in their day-to-day? •  How many services have scalable unit economics to support an on-demand model? Continued seed investment in consumer daily goods and services companies founded in New York City, pitched as “Warby Parker for X.” Outstanding questions include: For a window into how NextView analyzes consumer, check out David Beisel’s Where To Look For The Next Consumer Startup Unicorn .  .  .  .  .  
  • 25. FOOD LOGISTICS: SHIFTING ONLINE 25 Total Meal Orders in the U.S. by Phone vs. Online 2010 2011 2012 2013 2014 2015 Telephone Internet 33% 67% 61% 44% 47%22% 78% 27% 73% 39% 56% 53% Source: NDP Group Market Research; Trends and Analysis
  • 26. 26 21.7Mworkday lunches every week in Manhattan alone Source: U.S. Census Data, NYC.gov Population Reports and Analysis FOOD LOGISTICS: NYC A TANTALIZING MARKET
  • 27. 27 21.7Mworkday lunches every week in Manhattan alone NYC residents report not regularly cooking at home Source: U.S. Census Data, NYC.gov Population Reports and Analysis 4.7M FOOD LOGISTICS: NYC A TANTALIZING MARKET
  • 28. 28 21.7M 5.8 meals per week workday lunches every week in Manhattan alone NYC residents report not regularly cooking at home per resident not prepared at home across all boroughs Source: U.S. Census Data, NYC.gov Population Reports and Analysis 4.7M FOOD LOGISTICS: NYC A TANTALIZING MARKET
  • 29. 29 We thought the unique value proposition (in food) was to build a business entirely around delivery. - Caleb Merkl, Co-Founder, Maple “
  • 30. 2013 2014 2015 Capital ($M) Deals FOOD LOGISTICS: VC INVESTMENT IN NYC 30 $86 24 $21 $483 From 2013 to 2015, annual venture capital investment in meal and food delivery startups over the same period has increased 30x. 8 Source: NextView Ventures Internal Analysis, Source Data: Mattermark, Crunchbase 13
  • 31. FOOD LOGISTICS: NYC STARTUP LANDSCAPE 31 Delivery Logistics Homer Logistics BringMeThat Restaurant Delivery Arcade FoodToEat CityLunch Club Stadium Push For Pizza FoodToEat FoodieforAll BentoBox Grocer – Speciality Aloha OurHarvest Mouth Foods Try The World Mercato FreshNation Delivery Only Maple Morsel Kettlebell Kitchen Portable Chef Home Cooked Homemade Umi Cookunity EatInChef The Oliver Weston Meal Kits Blue Apron Plated Freshly HelloFresh HungryRoot Sakara Life GreenBlender
  • 32. FOOD LOGISTICS: SUMMARY 32 The New York market can be a trap for food and meal delivery startups as the population density can create outsized order and revenue growth that is difficult to replicate in additional cities as the company expands.
  • 33. FOOD LOGISTICS: SUMMARY Areas of opportunity for improving the model are: +  Streamlining the local delivery network +  Nuanced logistics management software +  Visual discovery products & marketing (photo + video) +  Mobile demand generation 33 The New York market can be a trap for food and meal delivery startups as the population density can create outsized order and revenue growth that is difficult to replicate in additional cities as the company expands.
  • 34. FOOD LOGISTICS: SUMMARY Areas of opportunity for improving the model are: +  Streamlining the local delivery network +  Nuanced logistics management software +  Visual discovery products & marketing (photo + video) +  Mobile demand generation 34 The New York market can be a trap for food and meal delivery startups as the population density can create outsized order and revenue growth that is difficult to replicate in additional cities as the company expands. Food logistics is as much a hustler’s market as any and is therefore particularly apt for entrepreneurs with operational execution and customer acquisition advantages or superpowers within a founding team.
  • 36. 36 As far as our ability to build an audience, New York is truly the most creative city in the world. I don’t think there’s another city that could make Tumblr what it is. - David Karp, Founder, Tumblr “
  • 37. MEDIA & PUBLISHING: CONSISTENT NYC FUNDING 37 4-Year Total: $923M Source: NextView Internal Analysis; Data Source: Mattermark; Graph excluding single rounds above $50M and all-Ad Tech Companies Annual VC investment in early-stage media startups based in NYC $126M $195M $326M $274M 2012 2013 2014 2015
  • 38. 38 MEDIA & PUBLISHING: THEMATIC DRIVERS – AUDIENCE
  • 40. 40 Niche Content Young Voices DailyWorth Panna Greatist MindBodyGreen PureWow AtlasObscura Food52 The Dodo Aplus Players' Tribune Fatherly Mic TheSkimm Bustle TheMuse SpoonUniversity EliteDaily The Infatuation Genius Hardbound + MEDIA & PUBLISHING: THEMATIC DRIVERS – AUDIENCE
  • 41. 41 Niche Content Young Voices New Audience DailyWorth Panna Greatist MindBodyGreen PureWow AtlasObscura Food52 The Dodo Aplus Players' Tribune Fatherly Mic TheSkimm Bustle TheMuse SpoonUniversity EliteDaily The Infatuation Genius Hardbound + = Rapid engagement 150M monthly active readers MEDIA & PUBLISHING: THEMATIC DRIVERS – AUDIENCE
  • 42. 42 MEDIA & PUBLISHING: THEMATIC DRIVERS – TECH/TACTICS
  • 43. 43 MEDIA & PUBLISHING: THEMATIC DRIVERS – TECH/TACTICS RebelMouse Honey Versa Point AuthorBee Newsela This. Social Curation
  • 45. 45 RebelMouse Honey Versa Point AuthorBee Newsela This. Vizo News BreakingMedia Social Curation Quick Consumption MEDIA & PUBLISHING: THEMATIC DRIVERS – TECH/TACTICS Discovery WildCard Hullabalu Fresco News Readly Mobile-First
  • 46. 46 RebelMouse Honey Versa Point AuthorBee Newsela This. Vizo News BreakingMedia Social Curation Quick Consumption MEDIA & PUBLISHING: THEMATIC DRIVERS – TECH/TACTICS Discovery WildCard Hullabalu Fresco News Readly Mobile-First NowThisNews Wibbitz Gimlet Media OverCast MoLabs Audio/Video Consumption
  • 47. 47 RebelMouse Honey Versa Point AuthorBee Newsela This. Vizo News BreakingMedia Social Curation Quick Consumption MEDIA & PUBLISHING: THEMATIC DRIVERS – TECH/TACTICS Discovery WildCard Hullabalu Fresco News Readly Mobile-First NowThisNews Wibbitz Gimlet Media OverCast MoLabs Audio/Video Consumption online audiences shifting their consumption behavior =
  • 48. MEDIA & PUBLISHING: ECOSYSTEM THAT NURTURES 48 NYC is the home of the media industry and has created a startup-friendly ecosystem, with media-focused incubators, investors, and studios present. The larger players have also exhibited a consistent appetite for acquiring young media startups.
  • 49. MEDIA & PUBLISHING: ECOSYSTEM THAT NURTURES 49 $285M invested Since ‘13 Continued Support From Betaworks NYTimes R&D Lab Comcast’s Venture Arm 9 Acquisitions since ‘12 8 Acquisitions since ‘12 7 Acquisition since ‘13 FOSTERING NEW INNOVATION APPETITES FOR ACQUISITION 5 Acquisitions since ‘14 NYC is the home of the media industry and has created a startup-friendly ecosystem, with media-focused incubators, investors, and studios present. The larger players have also exhibited a consistent appetite for acquiring young media startups.
  • 50. MEDIA & PUBLISHING: ANTICIPATING MORE M&A 50 Newly established media giants in NYC represent a field of tech-forward, high-growth organizations with significant capital for acquisitions as they continue to seek mainstream audience saturation and increased engagement stats
  • 51. MEDIA & PUBLISHING: ANTICIPATING MORE M&A 51 14 acquisitions and $1.5B Raised since ‘11 Newly established media giants in NYC represent a field of tech-forward, high-growth organizations with significant capital for acquisitions as they continue to seek mainstream audience saturation and increased engagement stats
  • 53. 53 There are hundreds of startups with a lot of brains and money working on various alternatives to traditional banking. - Jamie Dimon, CEO, JP Morgan “
  • 54. 2012 2013 2014 2015 Accounting Markets Wealth Management Payments Lending Risk & Security Insurance FINTECH: VC DEALS BY FINTECH SUBSECTOR, ‘12-‘15 54 24% 23% 12% 17% 12% 15% 24% 14% 16% 15% 18% 28% 33% 28% 21% 12% 8% 14% 21% 24% 5% 4% 2% 2% 2% 2% 3% Source: NextView Ventures Internal Analysis; Mattermark
  • 55. 2012 2013 2014 2015 Accounting Markets Wealth Management Payments Lending Risk & Security Insurance FINTECH: VC DEALS BY FINTECH SUBSECTOR, ‘12-‘15 55 24% 23% 12% 17% 12% 15% 24% 14% 16% 15% 18% 28% 33% 28% 21% 12% 8% 14% 21% 24% 5% 4% 2% 2% 2% 2% 3% Source: NextView Ventures Internal Analysis; Mattermark 49 DEALS 71 DEALS 85 DEALS 96 DEALS
  • 56. FINTECH: THE CITY EMBRACES BITCOIN 56 October 2015 January 2014 July 2014 June 2015
  • 57. FINTECH: THE CITY EMBRACES BITCOIN 57 October 2015 January 2014 July 2014 June 2015 The Bitcoin Center NYC opens on Wall Street as a crypto-currency education, advocacy, and community development organization
  • 58. FINTECH: THE CITY EMBRACES BITCOIN 58 October 2015 January 2014 July 2014 June 2015 The NYC Taxi and Limousine Commission adopts Bitcoin payment for yellow cab rides
  • 59. FINTECH: THE CITY EMBRACES BITCOIN 59 October 2015 January 2014 July 2014 June 2015 New York becomes first state to issue comprehensive rules and guidelines for regulating digital currency firms
  • 60. FINTECH: THE CITY EMBRACES BITCOIN 60 October 2015 January 2014 July 2014 June 2015 Barry Silbert launches the Digital Currency Group in New York to invest in Bitcoin and blockchain startups
  • 61. FINTECH: THE CITY EMBRACES BITCOIN 61 Recently Seed-Funded NYC Bitcoin Startups: October 2015 January 2014 July 2014 June 2015
  • 62. FINTECH: CONTINUED UNBUNDLING OF THE BANK 62 A map of the NYC FinTech startups building for a specific financial service (the majority of which are traditionally provided by a bank)
  • 63. FINTECH: CONTINUED UNBUNDLING OF THE BANK 63 Graphic via letstalkpayments.com, 12.15.15 A map of the NYC FinTech startups building for a specific financial service (the majority of which are traditionally provided by a bank)
  • 64. 64 PLENTY OF QUESTIONS REMAIN FINTECH: SUMMARY
  • 65. 65 1.  Will mainstream consumers begin to trust the startup robo-bank and algorithm more than human wealth managers and bank tellers? 2. Will the financial establishment in New York incubate and foster startup innovators within their industry … or view them competitively and push back? 3.  Will the transparency and performance of new consumer finance products and services outweigh the convenience of the all-in-one retail banking incumbent? 4.  How does the decrease of human-powered exchange and asset trading contribute to an overall contraction in the financial services industry? PLENTY OF QUESTIONS REMAIN FINTECH: SUMMARY
  • 66. 66 1.  Will mainstream consumers begin to trust the startup robo-bank and algorithm more than human wealth managers and bank tellers? 2. Will the financial establishment in New York incubate and foster startup innovators within their industry … or view them competitively and push back? 3.  Will the transparency and performance of new consumer finance products and services outweigh the convenience of the all-in-one retail banking incumbent? 4.  How does the decrease of human-powered exchange and asset trading contribute to an overall contraction in the financial services industry? PLENTY OF QUESTIONS REMAIN FINTECH: SUMMARY NextView tends towards deep analysis of FinTech. For an example, check out Lee Hower’s long-term view of Square, published just ahead of their recent IPO. .  .  .  .  .  
  • 68. STARTUP TALENT: NYC BY THE NUMBERS 68
  • 69. STARTUP TALENT: NYC BY THE NUMBERS 3.1 Millionof the city’s residents have an undergraduate college degree 69 Source: U.S. Small Business Administration, U.S. Census Bureau, U.S. Bureau of Labor Statistics
  • 70. STARTUP TALENT: NYC BY THE NUMBERS 3.1 Millionof the city’s residents have an undergraduate college degree 70 Source: U.S. Small Business Administration, U.S. Census Bureau, U.S. Bureau of Labor Statistics 190,000small business employers – second-most of any U.S. city
  • 71. STARTUP TALENT: NYC BY THE NUMBERS 3.1 Millionof the city’s residents have an undergraduate college degree 71 Source: U.S. Small Business Administration, U.S. Census Bureau, U.S. Bureau of Labor Statistics 300,000engineering, programming and mathematics jobs 190,000small business employers – second-most of any U.S. city
  • 72. STARTUP TALENT: NYC BY THE NUMBERS 3.1 Millionof the city’s residents have an undergraduate college degree 72 Source: U.S. Small Business Administration, U.S. Census Bureau, U.S. Bureau of Labor Statistics 3.6 Millionresidents are 30 years old or younger 300,000engineering, programming and mathematics jobs 190,000small business employers – second-most of any U.S. city
  • 73. STARTUP TALENT: NYC’S SURPLUS 73 Graduate and undergraduate schools at universities and colleges as well as vocational design and technical programs based in New York City produce local engineering and product talent every year. They include:
  • 74. STARTUP TALENT: NYC’S SURPLUS 74 NYC is also the epicenter of many industries with countless tech- savvy employees currently working for legacy companies. This presents seed companies with a perpetual pool of future hires as operators and executives, as well as advisors. These industries include: FINANCE MEDIA FASHION ADVERTISING CONSULTINGSPORTS INSURANCEREAL ESTATE LAW TELECOM
  • 75. STARTUP TALENT: NYC’S SURPLUS 75 NYC is also the epicenter of many industries with countless tech- savvy employees currently working for legacy companies. This presents seed companies with a perpetual pool of future hires as operators and executives, as well as advisors. These industries include: This dynamic is particularly helpful during a growth period for a startup that now needs to scale the team. FINANCE MEDIA FASHION ADVERTISING CONSULTINGSPORTS INSURANCEREAL ESTATE LAW TELECOM
  • 76. STARTUP TALENT: CITY-TECH NATIVE FOUNDERS 76 City-Tech Natives: First-time founders who came up in the NYC ecosystem. Also contributing to a strong and growing ecosystem:
  • 77. STARTUP TALENT: CITY-TECH NATIVE FOUNDERS 77 Also contributing to a strong and growing ecosystem: +  Knows the playbook for entrepreneurial success from being early employee at high growth startup(s) +  Years of patience and discipline in absorbing experience and knowledge now unleashed as he/she founds NewCo +  Often has a chip on his/her shoulder and something to prove City-Tech Natives: First-time founders who came up in the NYC ecosystem.
  • 78. The high-growth companies of this current cycle in NYC – Tumblr, Makerbot, Foursquare, Buzzfeed, MongoDB, Etsy, etc. – Have created a critical mass of talented hackers and designers. We believe many of the great NYC companies in this next wave will be founded by people who grew up in the first wave. - Nick Chirls, Partner, Notation Capital “ 78
  • 79. STARTUP TALENT: CITY-TECH’S NEXT WAVE 79 Poncho Kuan Huang (Hatch Labs) Zola Shan-Lyn Ma (Chloe & Isabel, Gilt Groupe) Electric Objects Jake Levine (Digg, Ladders) Andrew Lister (Foursquare) Dasher Mike Rothman (Thrillist) Fatherly Abacus Ted Power (Foursquare) Squad Adam Liebman (SinglePlatform) Matt Hackett (Tumblr) beme Brian Tobal (Thinkful, Boundless) Hickory Vianney Brandicourt (Spotify, Foursquare) Nestie Dan Reich (Lotame, BuddyMedia) Troops Scott Britton (SinglePlatform) Jen Rubio (Warby Parker) Steph Korey (Warby Parker) Josh Goldstein (Bondsy) Underdog Chris Muir (Hyperpublic) Away (An obviously non-exhaustive list.)
  • 82. 82 A pre-seed is an early round of financing designed to help a company achieve certain intermediate milestones prior to the magic combination of strong product market fit and meaningful traction. - Rob Go, Partner, NextView “ PRE-SEED: MAKING SENSE OF THE TREND
  • 83. PRE-SEED: IN CONTEXT 83 Inception Product-Market Fit Scalable Growth SEED SERIES A PRE-SEED
  • 84. PRE-SEED: IN CONTEXT 84 Inception Product-Market Fit Scalable Growth SEED SERIES A PRE-SEED WHAT ARE PRE-SEEDS AND WHY DO THEY EXIST? We believe this is a crucial topic to understand as a founder. To help, here are two deeper dives into pre-seeds: HOW NEXTVIEW APPROACHES PRE-SEED DEALS
  • 85. 85 2014 2015 The pre-seed phenomenon is pronounced in a New York ecosystem with comparatively fewer funding sources and less available capital. With traditional seed rounds decreasing as early financings begin to inflate and resemble Series A rounds, smaller funds and micro-VCs look to pre-seed rounds for early ownership. Percent Change in # of VC Deals by Stage in NYC + 41% - 37% + 10% PRE-SEED: THE FLATTENING OF SEED IN NEW YORK Pre-Seed Institutional Seed Series A or later
  • 86. 86 PRE-SEED: SUMMARY Entrepreneurs need smaller financing rounds ahead of an initial product launch Those early-stage investors who get priced out of instiutional seed or Series A rounds need to invest earlier for ownership Pre-Seed Increase in NYC
  • 87. NYC 2015: THE YEAR IN VENTURE #7 87
  • 88. NYC: VC INVESTMENT 2015 88 Etsy Business Insider Tapad LearnVest Sunrise* IPO $442M $360M $250M $100M * Sunrise was a NextView Ventures seed investment; Source: NextView Internal Analysis; Mattermark; CBInsights NOTABLE EXITS
  • 89. NYC: VC INVESTMENT 2015 89 NYC: $7.7 Billion Global VC 6.2% NOTABLE EXITS NYC VC AS % OF GLOBAL * Sunrise was a NextView Ventures seed investment; Source: NextView Internal Analysis; Mattermark; CBInsights Etsy Business Insider Tapad LearnVest Sunrise* IPO $442M $360M $250M $100M
  • 90. NYC: VC INVESTMENT 2015 90 NYC: $7.7 Billion Global VC 6.2% NOTABLE EXITS NYC VC AS % OF GLOBAL 0   50   100   150   200   250   0   200000000   400000000   600000000   800000000   1E+09   1.2E+09   1.4E+09   1.6E+09   1.8E+09   2E+09   b2b Software non-Software b2b Services b2c Software Consumer Goods & Services Media & Publishing Healthcare & Pharma FinTech Insurance Housing & Travel Capital ($MM) Deals 1.75B        207       108 1.01B 134 745 60 643 640 82 427 41 401 73 23 323 31 276 MOST-FUNDED SECTORS * Sunrise was a NextView Ventures seed investment; Source: NextView Internal Analysis; Mattermark; CBInsights Etsy Business Insider Tapad LearnVest Sunrise* IPO $442M $360M $250M $100M
  • 91. NYC: SEED 2015 91*Seed representing rounds <$4.5M; **NextView Ventures portfolio company | Source: NextView Ventures Internal Analysis; Mattermark; Crunchbase; Angelist 175 SEED-STAGE DEALS* $291 MILLION IN CAPITAL
  • 92. NYC: SEED 2015 92*Seed representing rounds <$4.5M; **NextView Ventures portfolio company | Source: NextView Ventures Internal Analysis; Mattermark; Crunchbase; Angelist 175 SEED-STAGE DEALS* $291 MILLION IN CAPITAL NOTABLE SERIES A ROUNDS (POST-SEED) Managed By Q: $15M Pager: $14M x.ai: $9.2M Paintzen**: $7.2M TalkSpace: $9.5M Artivest: $15M Button: $12M Reserve: $15M
  • 93. NYC: SEED 2015 93*Seed representing rounds <$4.5M; **NextView Ventures portfolio company | Source: NextView Ventures Internal Analysis; Mattermark; Crunchbase; Angelist 175 SEED-STAGE DEALS* $291 MILLION IN CAPITAL NOTABLE SERIES A ROUNDS (POST-SEED) 3% 97% SEED AS % OF CAPITAL 24% 76% SEED AS % OF DEALS Managed By Q: $15M Pager: $14M x.ai: $9.2M Paintzen**: $7.2M TalkSpace: $9.5M Artivest: $15M Button: $12M Reserve: $15M
  • 94. 94 IN THE END: BUILD IN NYC New York. It was an adult portion. It was an adult dose. So it took a couple of trips to get into it. You just go in the first time and you get your ass kicked and you take off. As soon as it heals up, you come back and you try it again. Eventually… You fall right in love with it. - Levon Helm “ I NY
  • 95. 95 THANK YOU For more insights for seed-stage startups, subscribe to our weekly email, sharing resources & stories about gaining startup traction with insights from companies like these: SUBSCRIBE (We’ll auto-respond with our most popular resources) @tdevane @NextVIewVC|