Category: enterprise

Enterprise Venture on the East Coast

In 2011 there were 58 enterprise seed deals done in New York and Boston representing $21 million of capital being put to work. Two years later those numbers were up to 73 enterprise seed deals and $33 million. Deals up 26% and dollars up 57%.

The numbers are more impressive for Series A deals. In 2013 enterprise deals rose 73% to 57 from 33 in 2011 and enterprise dollars rose 159% to $342 million from $132m in 2011.

It’s safe to say the upward trend is continuing into 2014. So far there have been $243 million dollars invested in 85 deals (combined Seed and A) in New York and Boston through Q2.

Contained in that sample are companies I’ve come in contact with like:

  • Datadog which Crunchbase reports has raised $22.4 million from 9 investors.
  • Hadapt which Crunchbase reports has raised $16.2 million from 2 investors and was acquired for around $50 million.
  • WorkFusion which Crunchbase reports has raised $22.3 million from 4 investors.
  • Evergage which Crunchbase reports has raised $6.3 million from 8 investors
  • MortarData which Crunchbase reports has raised $3.2 million from 5 investors.
  • VisualRevenue which Crunchbase reports has raised $2.2 million from 7 investors and was acquired for around $10 million.

Just in this small sample there are couple nice mark ups and a couple exits at decent multiples. And of course there are many more successful companies I didn’t mention and plenty of time for them to be wildly successful.

I expect a couple things to happen:

  • I expect some of these founders and other senior guys to build other enterprise companies here on the east coast.
  • I expect some larger enterprise tech companies that have engineers here on the east coast to break out and do their own thing here on the east coast.
  • I expect some of the entrepreneurs from Cornell and Columbia and NYU and MIT and Harvard to decide that they would rather be closer to their customers and not move to the valley to start their companies.
  • I expect the support ecosystem that nurtures these types of companies to grow.
  • I expect the support ecosystem that nurtures these types of companies to grow.

In short, I expect the trends we are seeing in enterprise tech startups on the east coast to continue. And I look forward to being part of it.