The New York metro-area startup scene is off to a strong start in terms of exits, but startup funding in the region has been slower than anticipated.

This month, Google announced plans to acquire New York-based cybersecurity company Wiz for $32 billion, potentially making it the largest startup acquisition ever. Meanwhile, Livingston, New Jersey-based CoreWeave is on track to go public with a target valuation of around $32 billion.

However, when it comes to securing funding, the story is different.

New York Startup Funding Slows in 2025
So far this year, startups in the New York metro area have raised approximately $3 billion in seed and venture funding. This total is on track to be the lowest in the past five quarters.

Despite this slow start, it’s important to remember that New York is consistently ranked as the second-largest venture hub in the U.S. after the San Francisco Bay Area. While funding levels have been lower than in 2021, New York still attracts significant investment.

Big Rounds in 2025
While overall funding has been slow, a few notable rounds have closed. The largest financing of the year so far went to ElevenLabs, a developer of an AI audio platform. The company raised $180 million in Series C funding in January, led by Andreessen Horowitz and Iconiq Growth.

In February, Chestnut Carbon, a startup focused on carbon removal credits, raised $160 million in Series B funding. Just this week, Character Biosciences, a precision medicine company, secured $93 million in Series B funding.

A Look at Last Year’s Largest Rounds
When looking back at 2024, the largest rounds were much larger. The biggest recipients of funding last year included CoreWeave and Wiz, which are now set to go public or be acquired.

Fewer Rounds, But Not Necessarily a Bad Sign
A key takeaway from these developments is that a decline in startup funding may not always be a negative trend. If the decrease is due to successful companies moving on to IPOs or acquisitions, it can signal a healthy startup ecosystem.

That said, the New York metro area still has a strong pipeline of early-stage startups that will likely seek follow-on funding throughout the year. With time, we hope to see more of these startups secure the investments they need to grow.