SoatDev IT Consulting
SoatDev IT Consulting
  • About us
  • Expertise
  • Services
  • How it works
  • Contact Us
  • News
  • May 28, 2023
  • Rss Fetcher

Techstars’ Kerty Levy knows a thing or two about where seed funding is, and where it might be going, in the Northeast.

During a presentation at TechCrunch’s Early Stage in Boston last month, Levy took a brief look at deal counts and valuations before exploring in more depth what the obstacles to funding are right now, and what founders are going to have to expand on in order to cut a deal.

From 2021 to 2022, overall deal count in the Northeast was down around 25%. It might not be surprising, but it is quite stark. If you take a look at seed funding specifically, things are even more contracted.

“Even if you extrapolate out past this quarter, even if we have a great second half of the year, I’m afraid that the deal count is looking bad,” she said.

In the first quarter of 2023, most of the investments in New England were in the productivity, business productivity, software, health care, climate, energy and fintech sectors.

But in Levy’s opinion, founders seeking investment are expected to jump through a series of hoops in order to access a pot of money that has decreased in size.

“In 2021, you would go through this list of things to think about,” Levy said. “Traction: check. Founder/market fit: check. That’s the attitude investors were going through at that time. But this time around, what we’re seeing is real, really rigorous, hurdle-jumping to get through the diligence and even through a few meetings with investors. And I think that’s because investors have funds to invest and want to spend it, but they want to spend it on the companies that they feel have the best chance of success.”

While investment might be down overall, there’s still a lot of buzz surrounding the companies that do get through all the hoops.

“Just like always, there is a little bit of FOMO there,” Levy said. “So those companies who are checking those boxes heavily and making it through that diligence, those are the ones that you’re hearing the buzz about the valuations are still up there.”

The hurdles are high.

Taking the pulse on the Northeast seed market with Techstars’ Kerty Levy by Haje Jan Kamps originally published on TechCrunch

Previous Post
Next Post

Recent Posts

  • Spotify updates its AI DJ to let you use voice commands
  • Insurtech Bestow lands $120M Series D from Goldman Sachs, Smith Point Capital
  • Robinhood grows its footprint in Canada by acquiring WonderFi
  • Safaricom Partners iXAfrica to Launch Kenya’s First AI-Ready Data Infrastructure
  • Marks & Spencer confirms customers’ personal data was stolen in hack

Categories

  • Industry News
  • Programming
  • RSS Fetched Articles
  • Uncategorized

Archives

  • May 2025
  • April 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023

Tap into the power of Microservices, MVC Architecture, Cloud, Containers, UML, and Scrum methodologies to bolster your project planning, execution, and application development processes.

Solutions

  • IT Consultation
  • Agile Transformation
  • Software Development
  • DevOps & CI/CD

Regions Covered

  • Montreal
  • New York
  • Paris
  • Mauritius
  • Abidjan
  • Dakar

Subscribe to Newsletter

Join our monthly newsletter subscribers to get the latest news and insights.

© Copyright 2023. All Rights Reserved by Soatdev IT Consulting Inc.