Tech:NYC Digest: December 19

Tech:NYC Digest: December 19

December 19, 2022 • Estimated Reading Time: 9 minutes

Monday, December 19, 2022

In today’s digest, Fifth Avenue gets turned over to the people, finalizing your holiday travel plans (top tip: watch the weather), and the tech trends VCs are betting on in 2023.

Was this digest forwarded to you? Subscribe here.

  • A proposal to permanently "reimagine" Manhattan's Fifth Avenue between Bryant Park and Central Park could mean a lot fewer cars and expanded space for pedestrians and cyclists along the busy commercial corridor. (Gothamist)

  • The latest data from the CDC says updated booster shots have been effective in bolstering Americans’ defenses against serious COVID, reducing the risk of hospitalization by roughly 50 percent. (New York Times)

  • The world’s largest menorah was lit Sunday night in Manhattan to mark the start of Hanukkah. The 36-foot tall menorah was erected in midtown’s Grand Army Plaza. (CNN)

  • A weather alert, especially if you have holiday travel planned for the end of the week: an intense storm system is expected to severely impact NYC-area airports and roadways beginning Thursday afternoon. Get the details here.

  • Lastly, how well do you know NYC’s subway system? Take this quiz to find out. (Our team did, and it was harder than expected!)

In other reading:

  • Which Virus Is It This Time? New Yorkers Are Sick of Being Sick. (New York Times)

  • What’s on the agenda for the 2023 legislative agenda in New York? (City & State)

  • How Do You End a Year Like This? As with many of life’s big questions, the answer turns out to be “panettone.” (Grub Street)

We’ve reached the time of year where tech founders and investors are locked in to their industry predictions for the coming year. 2022 certainly saw no shortage of activity (both good and not-so-good), and 2023 promises to keep the same pace.

Here are some of the trends leading VCs are watching going into the year:

  • Superpowered software will get even more attention: The pop in generative AI and other deep-learning software will not only transform the way we work, but accelerate a whole new class of “enterprise applications to challenge almost all other categories of software,” says Two Sigma Ventures partner Villi Iltchev.

  • Unicorn valuations are coming back as a meaningful metric: Following a bull market where it got a lot easier to find new unicorns, the milestone will become more hard-earned as funding for more mature startups dries up. We’ll see a “return to multiples that resemble the long-term multiples pre-2020,” says IVP general partner Cack Wilhelm.

  • The pendulum will shift to in-person work: People will spend more structured, recurring time together, even if their companies don’t require them to badge in five days a week. “Many companies are in survival mode and that often means pulling the team in … and building together to increase odds of success,” says Inspired Capital managing partner Alexa von Tobel.

  • M&A will have a breakout moment: After two years of startups rapidly scaling — particularly in high-demand sectors like healthtech during the pandemic — wind-downs in 2023 may mean “leading companies in any given sector will become destinations for struggling startups that still have strong intellectual property or customer contracts to offer,” says Energize Ventures managing partner John Tough.

  • Layoffs this year will reshape the race for tech talent next year: Layoffs from larger tech employers created one silver lining: a source of talent for early-stage startups ready to snatch up “determined workers who will infuse seed and Series A companies with the talent they had trouble unlocking during the bull market,” says CRV general partner Max Gazor.

Here’s what others in the Tech:NYC network are saying:

  • Howl, a NYC-based collaboration marketplace for brands and creators, raised $27 million in Series A funding. Highland Capital Partners led the round and was joined by Act One Ventures and Talis Capital. (The Information)

  • July, a NYC-based brand deal automation platform, raised $2.3 million in pre-seed funding. Seven Seven Six led the round and was joined by Genius Ventures and a group of individual angels. (Insider)

  • Nomad Data, a NYC-based data management startup, raised $3.2m in seed funding. Struck Capital led the round and was joined by TenOneTen, Bloomberg Beta, Correlation Ventures, Flair Ventures, Geek Ventures, Alumni Venture Group, and Firat Isbecer, and a group of individuals. (Benzinga)

Primary Venture Partners, an early-stage VC firm focused on New York startups, is accepting applications for its seventh NYC Founders Fellowship cohort. This cohort is focused exclusively on early-stage founders building in healthcare to participate in a free, part-time, no-equity program for feedback on developing a GTM strategy, raising money, scaling your team, and more. Learn more and apply by Jan. 8 here.BX-XL, an early-stage startup accelerator program run by the Social Justice Fund and Visible Hands to support BIPOC founders, is accepting applications for its inaugural cohort. Selected founders will receive investments of up to $500,000, mentorship, company-building support, and more. Learn more and apply by Jan. 20 here.Interested in teaching the next generation of coders? Giant Machines is accepting applications for their Summer Teaching Fellows (formerly Upperline Code Fellows), as it pursues its mission of creating pathways to tech careers through computer science education. The program has partnerships with nonprofits like CSforAll, Break Through Tech, and SEO Scholars, along with Fortune 100 companies like Google and the sponsors of FinTech Focus. Apply by the Jan. 16 priority deadline here.The Social Science Research Council is accepting applications for its Just Tech Fellowship. The program is open to cross-disciplinary researchers and practitioners to imagine and create more just, equitable, and representative technological futures. Selected fellows receive two-year awards of $100,000 annually, as well as seed funding for work on other collaborative projects. Learn more and apply by Jan. 30 here.

Any feedback or suggestions of things to add? Get in touch here. Was this digest forwarded to you? Sign up to receive it directly here.