Lisa Chow is the economics reporter at WNYC. She tries to explore in her stories surprising aspects of New York’s many economies—in plain view or hidden, in neighborhoods or sectors.
Boston Beats New York City in Money Raised for Start-ups
Friday, July 22, 2011
Boston tops New York — when it comes to venture capital funding that its start-up companies received during the first half of this year.
Boston start-ups drew in $1.9 billion from January to June — 30 percent more than New York City start-ups.
This reverses the trend set last year, where New York surpassed Boston. In 2010, New York companies drew in $2.29 billion, whereas Boston attracted $2.20 billion.
Boston's bio-tech industry had a big second quarter, and New York start-ups tend to focus on less costly and less research-intensive areas, like consumer technology, said Jessica Canning, the global research director of Dow Jones VentureSource, which publishes quarterly venture capital figures.
In Boston, the companies that received the most amount of venture capital money during the second quarter included furniture company CSN Stores and biopharmaceutical companies Tesaro, Radius Health and Merrimack Pharmaceuticals.
In New York, the top deals went to luxury goods websites Gilt Groupe and Ideeli, social-networking app Foursquare and health care technology company MD On-Line.