Tech:NYC Digest: September 28

Tech:NYC Digest: September 28

September 28, 2022 • Estimated Reading Time: 9 minutes

Wednesday, September 28, 2022

In today’s digest, turning offices into apartments, the EV charging network coming to New York highways, and new research reveals how NYC is leading the global fintech race.

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  • NYC is entering its third pandemic winter with the least amount of public health rules in place since the lockdown began. Public health experts are monitoring rising case counts in Europe and warning of another seasonal surge here in NYC, albeit less severe than previous years. (NY1)

  • New York isn’t the only major city looking to transform vacant office buildings into housing — a solution for both empty downtowns and housing shortages — but the city's leading real estate trade association REBNY estimates that a "conservative" conversion rate of 10% of NYC’s lower-tier office buildings could generate approximately 14,000 new residential units. (Axios)

  • New York’s Electric Vehicle Infrastructure Deployment plan was approved by the U.S. Dept. of Transportation, clearing the way for $175 million in new funding to expand New York’s EV charging networks. (Crain’s New York Business) The state plans to install charging stations roughly every 50 miles along New York highways.

  • NYC is enlisting the help of celebrity chef Rachael Ray and a coalition of other culinary experts to develop more than 100 plant-based recipes for public schools. (New York Post)

In other reading:

  • 11 of NYC’s Top New-School Slice Shops (Eater NY)

  • A mystery car is up for grabs in NYC. Let’s try to find it (Gothamist)

  • Why Is a New York Apartment Still So Hard to Find? (Bloomberg)

New York has long cemented its status as home to the world’s most influential financial institutions — which is why it has also quickly become one of the most attractive hubs for fintech leaders.

New research out today from Startup Genome released a first-of-its-kind ranking of dozens of global fintech hubs, placing NYC second globally. Get the report here.

  • The ranking — powered by original insights provided by Tech:NYC and the New York City Economic Development Corporation — awarded NYC a perfect 10 out of 10 in several categories, including sector performance, funding, startup experience, and legacy. 

The fintech sector’s success is traced back to its deep Wall Street legacy, with startups flocking to the city to collaborate with established banks and offer services across the city’s other leading industries, writes Crain’s New York Business.

  • In the past five years, that growth has extended to blockchain and cryptocurrency, despite warning of their setbacks in much of the rest of the world.

  • In 2021, the city counted more than 430 blockchain and crypto companies, up from 137 five years earlier. In the same year, NYC crypto startups also attracted $6.5 billion in venture capital funding, 46% of all VC funding for crypto nationwide. 

Of course, the fintech sector extends broadly to include startups building solutions for loans, payments and money transfers, investments, wealth management, and more.

  • According to the Startup Genome report, there are now over 1,000 fintech businesses in New York City, at least 20 of which have reached unicorn status with valuations over $1 billion.

A growing segment of the New York fintech sector is focused on expanding access to financial services, says Jimmy Chen, the founder and CEO of Brooklyn-based Propel, who contributed to the report.

  • Propel’s app, Providers, offers a free checking account and debit card for managing SNAP benefits, disability benefits, child tax credits, and other transfers, an example of how fintech can “serve a wider swath of the population.” Achieving that, he says, will require “enabling a diverse set of entrepreneurs to start companies that address the issues they understand best.”

“The rapid growth and far-reaching impact of New York’s fintech sector is undeniable: from record-setting venture funding to the emergence of groundbreaking startups, it’s clear the fintech scene here is unlike any other in the world,” said Tech:NYC Executive Director Jason Myles Clark. “Thanks to our world class tech talent base, proximity to legacy financial institutions, and local government rooting for the success of this subsector, New York is poised to be the leader in fintech innovation for years to come.”

  • Arthur, a NYC-based platform monitoring productivity of machine learning models, raised $42 million in Series B funding. Acrew Capital and Greycroft co-led the round and were joined by Work-Bench and Coalition Operators. (TechCrunch)

  • Climate Club, a NYC-based carbon reduction platform, raised $6.5 million in seed funding. XYZ Venture Capital and Vestigo Ventures co-led the round and were joined by Red Sea Ventures and MCJ Collective. (Businesswire)

  • Kaleidoscope, a NYC-based research team performance operating system, raised $6 million in seed funding. Hummingbird Ventures and Dimension co-led the round and were joined by Caffeinated Capital, SV Angel, Hawktail, and others. (Insider)

  • MPCH Labs, a NYC-based product and venture lab, raised $40 million in Series A funding. Participating investors include Liberty City Ventures, Animoca Brands, QCP Capital, Mantis VC, and others. (CoinDesk)

The Queens Chamber of Commerce’s Tech Council is seeking applications for its inaugural incubator program. The program provides complimentary office space and other support services, as well as mentorship opportunities with Tech Council members (including Tech:NYC!). Learn more and apply by Sept. 30 here.Hack.Diversity, an initiative founded in Boston with a commitment to advancing Black and Latine/x professionals in tech, is expanding to New York and accepting applications for its inaugural NYC fellowship program. The nine-month program is seeking early-career software engineers interested in accelerating their careers in tech and building a diverse network. To get involved, reach out here. Learn more and apply by Oct. 1 here.Primary Venture Partners is accepting applications for its sixth NYC Founders Fellowship cohort. Early-stage entrepreneurs building a data startup are eligible to apply for the six-month, part-time, no-equity immersion program. Learn more and apply by Oct. 3 here.NYU Tandon’s Data Future Lab is accepting applications for Catalyst NYC, its zero-equity accelerator program. The six-month program is open to pre-seed and seed stage startups with a focus on AI, AR/VR, web3, cyber, emerging media, and other areas. Learn more and apply by Oct. 4 here.Urban-X, is accepting applications for its next accelerator cohort. Founders building businesses that solve cities’ thought challenges in areas such as transit and mobility; built environment and real estate; food, waste, and water; and energy and grid are eligible to apply. Learn more and apply on a rolling basis here.

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