Tech:NYC Digest: August 26

Tech:NYC Digest: August 26

August 26, 2021 • Estimated Reading Time: 8 minutes

Thursday, August 26, 2021

In today’s digest, widespread booster shots are anticipated next month, US venture-backed valuations are soaring higher than ever, and Yext founder and CEO Howard Lerman tells us why physical offices shouldn’t disappear on the latest Talk:NYC.

  • Programming note: It’s obviously been a long 18 months for all of us, and having time to recharge is more important than ever. Team Tech:NYC is taking a much needed break next week, so the digest will be on brief hiatus. We’ll see you again after Labor Day on Tuesday, September 7.  

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Today’s latest:

  • Coronavirus cases continue to increase in most of the US, and experts say it will get worse before the Delta variant subsides. (Axios) New COVID-related hospitalizations have now surpassed 100,000 for the first time since January. (New York Magazine)

  • The Biden administration is expected to approve COVID-19 booster shots for the Pfizer and Moderna vaccines, and FDA officials will allow them to be given six months after an individual’s last dose, instead of the prior eight month timeline. (Wall Street Journal)

    • Third doses from all three major vaccines — Pfizer, Moderna, and Johnson & Johnson — will begin broad distribution the week of Sept. 20.

  • Under new Governor Kathy Hochul, the state Dept. of Health increased the COVID-19 death toll on its website by 12,000, bringing the updated total in line with the numbers it had been sharing with the federal government. (Gothamist)

    • The new total accounts for “presumed” COVID-19 deaths, many of which occurred early in the pandemic when tests were still scarce.

  • New York’s small business recovery grant program has expanded to allow more businesses to apply for funding. Businesses with revenues up to $2.5 million can now apply for grants, increased from the previous threshold of $500,000. Learn more here.

  • More than 100,000 New Yorkers have been vaccinated as a result of the city’s $100 incentive program since its inception last month. (New York Post)

In other reading:

  • Living with coronavirus will likely never be risk-free (Axios)

  • The 23-Year-Old Party Promoter Heading to NYC’s City Council (Curbed)

  • Introducing the ‘quarantine room’: A home of the future, shaped by the coronavirus pandemic (Washington Post)

Check out the latest episode of Talk:NYC with Howard Lerman, founder and CEO of Yext. As always, Howard fits in a lot in a short amount of time. He and Julie talked about his innovation philosophy, his latest entrepreneurial pursuits, the future of tech in New York, and why in-person work will always be important to Yext’s company culture. Did we mention they just opened a big new HQ in the Meatpacking District? Listen here or wherever you get your podcasts.

Valuations for venture backed companies in the US are at record highs, according to new data released this week by Pitchbook. (Axios)

  • That’s especially true for early-stage startups, which in Q2 of this year, reached valuations averaging more than $105 million.

Eye-popping deal announcements are becoming more common across the entire ecosystem, from seed all the way to pre-IPO. If these trends continue, we could see the average late-stage valuation reach more than $1 billion by the end of the year.

The largest deals are, perhaps unsurprisingly, concentrated in the country’s major tech hubs: San Francisco, NYC, Los Angeles, and Boston.

  • Tech:NYC’s own data has tracked at least 35 Q2 deals in NYC alone — mostly at the Series C stage — that were $100 million megarounds or greater. Many were double and triple that.

  • More than 90 NYC megarounds have been announced since the beginning of 2021, quickly vaulting more NYC tech companies to unicorn status than ever before.

The active venture environment seems to be mirroring an active IPO environment.

  • It wasn’t too long ago when a New York tech IPO was coming along every quarter or so. Now, it’s increasingly common to see more than one on the same day. 

  • 1stdibs and Zeta Global both on June 9 and Outbrain and VTEX both on July 23 are just two of the most recent examples of that happening.

The takeaway: The pandemic may have briefly made investors anxious — but it was very, very brief. Eighteen months later, there’s no indication startup activity is slowing down, and valuations will continue to rise across the board. Sure, that’s good for the tech sector, but it’s also good news for a city economy desperate for an optimistic outlook.

  • How CEOs Should Manage Their Time in the Hybrid Workplace (Harvard Business Review)

  • Does your company need to hire a ‘head of remote’? (Protocol)

  • How to set boundaries when you’re doing hybrid work (Fast Company)

  • Here’s Why the Background Check is an Ineffective Hiring Tool (Protocol)

  • Urbint, a New York-based developer of AI to predict critical infrastructure failures, raised $60 million in Series C funding. The round was led by Energize Ventures and joined by American Electric Power and OGCI Climate Investments, as well as existing investors Energy Impact Partners, National Grid Partners, Blue Bear Capital, and Salesforce Ventures. (VentureBeat)

  • Warby Parker, a New York-based direct-to-consumer eyewear maker, filed paperwork to go public via a direct listing. ​​Top shareholders include Tiger Global, T. Rowe Price, General Catalyst, D1 Capital Partners, and Durable Capital Partners. It would be the first B. corp. to do a direct listing. (Wall Street Journal)

If you’re looking for weekend plans, let us suggest Putting Green, a pop-up mini golf course on the Williamsburg waterfront. But here’s why it’s unique: it’s climate change themed. While putters navigate the 18 holes, they’re also learning about the contributors to climate change and how to take action. What’s even better — all profits are donated back to local organizations addressing climate change in NYC. See you on the green!

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