Tech:NYC Digest: June 6

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Tuesday, June 6, 2023

In today’s digest, Link5G’s plan to expand the country’s largest free public Wi-Fi network, the rise of the VC extension round, and how to get data privacy rules right for startups and small businesses.  

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• A group of 25 business, labor, and community organizations across the five boroughs (including Tech:NYC) are urging city leaders to support the rollout of Link5G, LinkNYC’s expanded effort to provide reliable broadband infrastructure to underserved communities. (City & State)

  • In related news, more than 100,000 NYCHA households have now enrolled in the city’s Big Apple Connect program, making it the largest municipal broadband program in the country. (amNewYork)

• If you’re noticing a dip in the air quality around the city this week, you have more than 100 wildfires burning in Quebec to blame for that. A health advisory is now in effect, especially for New Yorkers with pre-existing conditions like asthma.

• And if you’ve ever dreamed of becoming the proud owner of some MTA or New York City memorabilia, now’s your chance!

In other reading:

• Can Technology Solve the MTA’s Fare Evasion Problem? (New York Times)

• The Battle of the Roast Beef Sandwiches in Brooklyn (Eater NY)

The latest VC trend we’re keeping an eye on: the rise of the extension round.

What’s new: In the first quarter of 2023, at least four in 10 investments in venture-backed tech companies were bridge rounds, reports Crain’s New York.

• In NYC, the numbers were more pronounced: More than half of Series A companies closed rounds of fundraising to focus on current operations over growth, a rate that’s up from 237% in Q1 2020, according to data from Carta.

It’s a natural reflection of the broader economic conditions — but it’s also a voice of confidence from investors that supplemental support during a down market will benefit their long-term bets.

• NYC-based VC firm Tribeca Venture Partners, for example, began raising a $200 million growth-stage fund earlier this year to focus on downcycle-oriented support.

New York’s venture ecosystem remains among the most resilient

: Additional Carta recently found that Manhattan

— yes, even ahead of San Francisco — in volume of seed and Series A rounds. It’s an indication fundraising activity in the city remains strong, and it’s a trend we’ll continue monitoring as we head into Q3.

One good read: As state lawmakers in Albany tackle a set of new data privacy rules before the end of the legislative calendar this week, RAVN founder and CEO Tani Chambers writes the proposal could have unintended consequences — for startups and small businesses alike. Read her op-ed in today’s New York Daily News here.

• Sourcemap, a New York-based supply chain monitoring startup, raised $20 million in Series B funding. Energize Ventures and E14 Fund co-led the round.

• Stepful, a New York-based virtual medical training startup focused on entry-level roles, raised $7.5 million in seed funding. Reach Capital led the round.

• June 8: In-person: Cornell Tech Fest 2023, with NYC Chief Innovation Officer Oscar Romero, Dataminr SVP of AI Alex Jaimes, Plume CEO Matthew Wetschler, and more. Register here.

• June 13: Virtual: Beyond the Hype Cycle: Navigating the Promises and Perils of GenAI, with Bessemer Venture Partners vice president Morgan Cheatham, March Capital investor Maya Matthews, and others. Hosted by BLCK VC and AWS Startups. Register here.

• June 14: Make It in Brooklyn: Clean Energy Innovations, with itselectric co-founder Tiya Gordon, Streetlife Ventures managing partner Laura Fox, Latinxs in Sustainability lead Melina Acevedo, and Wildgrid partnerships manager Martine Luis. Hosted by Downtown Brooklyn Partnership. Register here.

• June 20: In-person: Future-Proofing Your Digital Product and Brand with AI, Innovatemap principals Jon Moore and Meghan Pfeifer. Register here.

• June 26: Virtual: #notapitch: Unofficial Feedback on Your Idea/Prototype from a VC, with Brooklyn Bridge Ventures partner Charlie O’Donnell. Register here.

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