New York City is one of the best cities in the world for startups. Last year, 421 NYC based startups collectively raised over $9.5 billion. Many brand-name and billion dollar startups have come from New York.
Some of the most notable are FanDuel, Warby Parker, Blue Apron, Zocdoc, WeWork, Vice, and Buzzfeed. While their are many large companies that started in NYC, the city is a thriving market for small and midsize startups.
Founded in 2013, Casper is an e-commerce company that ships extremely comfortable mattresses, pillows, sheets and other bedding accessories directly to their customers’ doors.
Why they’re hot: Casper revolutionized the mattress industry by selling directly to consumers via online marketing. Taking the brick and mortar cost out of a NYC startup allows for huge profit per mattress. Prices are high, quality is good, and I happen to sleep on their product every night. Buy it at noon and it will ship today if you live in the city.
Andela—which has raised $41 million to date, the company recruits and trains the most skilled software engineers on the African continent and places them in jobs at big-name tech companies based in the United States (e.g., Microsoft and IBM).
Why they’re hot: The company is also backed by the Chan Zuckerberg Initiative and Google. Having a great cause with an ability to really help companies with coding.
Slice is a company that helps mom-and-pop pizzerias transition to the digital era. Pizza to the People is their motto. The company earns $1.95 on each order placed through its platform recently closed a $15 million Series B round.
Why they’re hot: Over the last few years, Domino’s Pizza has fortified its digital sales channels leaving many mom-and-pop pizzerias in the dust. But Domino’s isn’t the only pizza place in the country. Last year, the pizza industry was quite lucrative, bringing in $45 billion. Slice correctly identified a market need and the company now boasts 6,000 partners across the country.
Frame.io builds technology designed to make video production collaboration a easier. Working remotely on a film editing project can provide a lot of technical difficulties, frame.io hopes to help solve this pain point.
Why they’re hot: Last year, Frame.io closed a $10 million Series A round. Additionally the product supports over 150 file formats while enabling users to post threaded, time-stamped comments on film—making the video collaboration process that much easier. Since video content is in high demand,
Cheddar is a streaming news service that focuses on financial and tech industries. The company targets millennials who are increasingly cutting the cord and abandoning cable due to ever-increasing prices.
Why they’re hot: Cheddar recently secured an additional $19 million in financing. According to company figures, 8% of millennials have already seen Cheddar content in only one year of business.
In 2015, Lemonade began its quest to disrupt the insurance industry by offering a more affordable solution for homeowners and renters alike.
Why they’re hot: The insurance industry is an antiquated industry that is ripe for change. Using artificial intelligence, Lemonade crafts customized insurance policies for each user. Starting at $5/month for renters and $25/month for homeowners, new algorithms may allow for more savings and profitability.
Nothing to do with Becky with the Good Hair.
Founded in 2008, CB Insights is a tech market intelligence platform that analyzes venture capital, startups, patents, partnerships and news to help clients make better decisions. The company closed its first round of financing in 2015 when it took in $10 million in a Series A.
Why they’re hot: CB insights uses a hot technology in a hot PE market.
A shameless self plug. Founded in 2016 we are bringing amazing designs, exceptional community and great value to the coworking industry. The idea is to craft the best offices, to help build amazing companies and help others follow their dreams.
Why we are hot: Great design, atmosphere & Community. Opening September!
Which startups would you include in a list like this? Let us know in the comments below!
Josh Bobrowsky- CoFounder & CEO