Tech:NYC Digest: March 15

Tech:NYC Digest: March 15

March 15, 2023 • Estimated Reading Time: 7 minutes

Wednesday, March 15, 2023

In today’s digest, subway upgrades hit the tracks, checking in on the impacts of pay transparency laws, and how telehealth startups mobilized to respond to the SVB collapse in real time.

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  • New subway cars have been rolled out on the A line, featuring flip-up seating for added space and door openings that are eight inches wider than the current models (which date back to the mid-1970s). (Gothamist)

  • Mayor Eric Adams wants to turn the city’s construction agency into a state authority, a move that could speed up construction of public projects but would curtail the power of a city commission charged with shaping the design of those projects. (Gothamist)

  • Following the passage of pay transparency laws in several states, about half of all US job postings now include salary information. (Bloomberg) In New York, that number is up to 75%.

In other reading:

  • The 72 hour scramble to save the United States banking crisis (Washington Post)

  • Pursuit CEO Jukay Hsu: How New York can fight student debt and lead the workforce development revolution (City & State)

  • The Problem with Pints: Why are the pours in NYC so small? (Grub Street)

We’re beginning to get a clearer picture about the constellation of startups most caught up in the aftermath of the SVB collapse, and digital health appears to be at the top of the list.

Digital health and biotech firms made up a substantial part of the SVB client base, and the collapse has sent shock waves through a sector already experiencing what SVB itself characterized as a “downcycle” for health deals, writes Axios.

  • The bank’s Q4 reports show 12% of its $173 billion in deposits came from life sciences and health care.

  • It also reported it was home to 55% of venture-backed tech and health care IPOs in 2021.

Ruth Health co-founder and CEO Alison Greenberg spoke to CNN about her scramble to withdraw the bulk of her company’s funds in the hours before the website went down and the bank was seized:

  • “My co-founder and I constantly think about two things: the people we employ and their families, and our patients — the mothers and new moms we support.” The impacts of this “will affect everyday Americans — not just CEOs like me.”

What it means: Health tech startups could be facing an entirely new fundraising environment. Some are predicting VCs' appetite for risk will shrink as a result:

  • Ian Strug, chief revenue officer at clinical trial startup Virgo said, “I’d imagine VCs will be closely watching how founders chose to deal with this crisis as a metric around future fundraising.”

In other reading:

  • The Aftermath of SVB: How The Fund’s Founder Community Came Together for Support (The Fund)

  • After the SVB crisis, what’s next for venture capital? (Fast Company)

  • There’s a Run on Silicon Valley Bank Swag (Wall Street Journal)

  • Alex, a NYC-based decentralized exchange built on bitcoin, raised $2.5 million in funding. Participating investors include Trust Machines, Gossamer Capital, and others. (The Block)

H/L Ventures, an NYC-based venture capital firm, is accepting applications for its Venture Studio. H/L looks to provide value-add services and partner with exceptional founders at the nexus of growth, diversity, and impact. Learn more and apply here.Remedy, a NYC-based product studio, is accepting applications for its Scout Program. Remedy Scout is a small community of founders, investors, and operators who get access to curated events and the opportunity to earn investment carry and revenue commission on referrals. Learn more and apply here.Urban Future Lab is accepting applications for the Offshore Wind Innovation Hub accelerator program and its Carbon to Value Initiative. Lean more and apply by March 27 and by March 31, respectively.Entrepreneurs Roundtable Accelerator is accepting applications for its Summer 2023 NYC accelerator program. ERA invests $150,000 for a 6% post-money SAFE and provides a four-month intensive mentorship program. Learn more and apply by April 17 here.The Grand Central Tech Residency Program is accepting applications for its Fall 2023 cohort. Selected startups receive free office rent for a year, as well as other community and programming benefits. Learn more and apply by July 15 here.

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