Skip to content

Techstars’ Kerty Levy gauges Northeast seed market trends.

[ad_1]

Understanding Northeast Seed Funding: Insights from Techstars’ Kerty Levy

Seed funding in the Northeast seems to be contracted during the COVID-19 pandemic, with an overall 25% deal count decline from 2021 to 2022. In fact, seed funding has become more competitive, with investors becoming more stringent in selecting companies to invest in, generating numerous hurdles.

Deal counts are declining

From 2021 to 2022, there was a noticeable 25% decline in overall deal counts related to seed funding within the Northeast. While this trend may not come as a surprise considering the current global conditions, it is still necessary to address as the decline means less funding is available for companies looking to scale.

The Northeast’s investment sectors

For the first quarter of 2023, the majority of Northeast investments were distributed among productivity, business productivity, software, healthcare, climate, energy, and fintech sectors. This suggests these sectors are the ones benefitting the most, for now, when it comes to securing direct investments.

The hurdles to securing seed funding

Founders seeking seed funding face numerous obstacles that they did not have to confront in the past. Investors are now more rigorous when selecting companies to invest in. They require startups to jump through a series of hoops, even to the point of requiring significant diligence and jumping over numerous hurdles before considering making a deal.

Investors’ expectations of startup companies

Prior to the pandemic, investors looked into a checklist of items before considering a startup company to invest in. Today, investors’ criteria for investing in companies have expanded. They seek companies with the best chance of success, and to this end, require high levels of traction and founder/market fit, among other things.

High buzz for successful companies

While overall investment is down, successful companies that make it through the rigorous investor selection process generate a lot of excitement in the current market, leading to a higher valuation and FOMO among investors who missed out on the deal.

Frequently Asked Questions

What is Northeast’s seed funding condition?

Seed funding in Northeast is contracted in the COVID-19 pandemic, with a decline in deal counts by 25% from 2021 to 2022 and investors becoming more stringent in selecting companies to invest in.

What sectors are the Northeast’s investments positioned in?

Investments in the Northeast are currently positioned in productivity, business productivity, software, healthcare, climate, energy, and fintech sectors.

What are the hurdles in obtaining seed funding?

Founders seeking seed funding face numerous obstacles that they did not have to confront in the past. Investors are now more rigorous when selecting companies to invest in. They require startups to jump through a series of hoops, even to the point of requiring significant diligence and jumping over numerous hurdles before considering making a deal.

What do investors want from startup companies?

Prior to the pandemic, investors looked into a checklist of items before considering a startup company to invest in. Today, investors’ criteria for investing in companies have expanded, seeking companies with the best chance of success, requiring high levels of traction and founder/market fit, among other things.

[ad_2]

For more information, please refer this link