Tech:NYC Digest: July 25

Tech:NYC Digest: July 25

July 25, 2023 • Estimated Reading Time: 7 minutes

Tuesday, July 25, 2023

In today’s digest, VC firms get in the accelerator business, a heat wave is on the way, and an investigation into drippy subway water (spoiler: it's cleaner than you think!).

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  • NYC is poised for its first official heat wave of the summer this week — three or more consecutive days when temperatures reach at least 90 degrees. The peak is expected Friday. (New York Post)

  • A new Revel Superhub with 30 EV fast-charging stations is coming to Port Morris, the company’s first in the Bronx and what Rep. Ritchie Torres called a vast improvement for “the accessibility of EV charging infrastructure to the public in a community that needs it the most.” (Bronx Times)

  • NYCHA has started swapping out steam radiators for greener pumps designed as part of a 2021 challenge to companies to build a better heater for the city’s public housing. (THE CITY)

In other reading:

  • The Hottest Office Market in America Is … Midtown Manhattan? (Bloomberg)

  • What’s in the Subway Water That Drips on Your Head? (New York Magazine)

  • Navigating an inexpensive NYC summer: Free activities you should know about (NBC New York)

As the recent Q2 venture capital funding data made clear, the seed stage of startup investment has held up much better than the later stage during this market cool-down phase. 

To help find those early-stage founders, many VC firms have been rolling out and expanding their own accelerator-style programs, writes Fortune.

It is part of a growing focus on seed and Series A investments. 

  • Firms such as Andreessen Horowitz and Sequoia Capital (which have both recently expanded their New York offices) have launched early-stage focused accelerator, or accelerator-like, initiatives. 

  • “Accelerators are one way a firm can build a brand and get some really good talent and technologies through there, especially for AI," PitchBook venture capital analyst Kyle Stanford told Fortune. "If you can source 15 AI companies through an accelerator program, that's 15 opportunities that you have to do a deeper due diligence than you might if you just came across 15 companies through a pitch deck." 

Finding good seed-stage founders is getting competitive. 

  • That's part of the reason more VC firms are launching accelerators, as Afore Capital investor Jack McClelland wrote on Twitter. 

  • A couple other reasons? "[It's] easier to write small checks [and] it's nice to watch founders over a period of time and see how fast they move (rather than guess this from pitch calls)," McClelland added. 

  • The VC-led efforts add to the list of options for founders. There are more than 100 accelerator and incubator programs in New York.

Some New York firms are offering mentoring programs outside of the accelerator format.

  • Primary's NYC Founders Fellowship is a three-month, part-time, no-equity program for aspiring entrepreneurs.

  • Harlem Capital recently closed applications for its first-ever Founder Launchpad, which offers a free, six-week program to help founders underrepresented in the tech industry build the community, network, and tools for launching a company.

  • Company Ventures' Grand Central Tech Residency gathers about 30 pre-series A companies and founders in NYC, providing free rent for a year with no equity commitment. 

In other reading:

  • Student loan benefits become hottest work perk, in wake of SCOTUS ruling (WorkLife)

  • Does your company need a ‘head of vibe’? (HR Brew)

  • Have Tech Layoffs Peaked? (Crunchbase News)

  • AppHub, a NYC- and San Francisco-based e-commerce software company, raised $95 million in new funding. PSG led the round. 

  • Giraffe, a NYC-based impact investing platform designed for employees, raised $10.5 million in seed funding. Group 11 led the round and was joined by Altair Capital and other angel investors.

  • July 26: In-person: Responsible Tech Mixer and Summer Celebration. Hosted by All Tech is Human and Betaworks. Register here.

  • July 27: In-person: No Stupid AI Questions, with Malamute CEO Matt Freed, former Ro head of ML Liz McQuillan, and New York AI founder Derek Larson. Hosted by Company Ventures and New York AI. Register here.

  • August 2: In-person: AI Tech for Good Pitch Contest, featuring finalists Azul Bio, InterviewMaster, Libbie Health, Pajama Cats Media, and Tilosia. Hosted by Downtown Brooklyn Partnership. Use code TechNYC for a complimentary ticket while supplies last by registering here.

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