In August 2026, New York City startups raised $837.9 million across 34 deals. This represents a 54% month-over-month decline in capital and a 36% drop in deal count compared to July, when $1.81 billion was raised across 53 deals. Year-over-year, capital decreased by 30% and deals fell by 44% compared to August 2025, when $1.19 billion was raised in 61 rounds.
Late-stage rounds dominated the month's funding, capturing 71% of the total capital through 11 deals. The largest transaction was Cityblock Health's Series E round of $116 million, backed by General Catalyst. Other significant late-stage raises included Blank Street's Series C of $75 million, supported by Tiger Global, Left Lane Capital, General Atlantic, and General Catalyst, and RQD Clearing's $74 million round backed by Bain Capital Tech Opportunities, ABN AMRO Clearing Bank, and Nyca Partners.
AI-native companies were present in at least 17 of the 34 rounds, covering sectors such as healthcare, infrastructure, security, and commerce. Notable AI-focused raises included Flagler Health's $50 million Series B, led by Bessemer Venture Partners, and June.ai's $20 million Pre-Seed round, backed by A*, SV Angel, and Vesey Ventures. Other early-stage AI companies like Multiplier, which raised $6 million in a Seed round from Lux Capital and Y Combinator, also secured funding.
Early-stage transactions were the most numerous, with 15 deals totaling $92.3 million. This included Advocate Technologies' $18 million Seed round, backed by MetaProp, Brewer Lane Ventures, and Vestigo Ventures, and Malachyte's $10 million Seed round from Bessemer Venture Partners. Other early-stage raises included Riven Systems' $7.9 million Pre-Seed and Claryx's $3.5 million Pre-Seed round.
Comparing NYC to the broader US market in August, the city accounted for 4.8% of total US venture capital ($18.1 billion) and 10.2% of the total deal count (333 deals). NYC's strongest relative position was in early-stage funding, where it captured 10.2% of national capital and 11.1% of deals. However, its late-stage capital share was only 6.1%, impacted by national megadeals in defense tech, clean energy, and semiconductor infrastructure outside of New York.
Year-to-date, New York City startups have raised $19.09 billion across 555 deals. This figure has already surpassed the full-year 2025 total of $19.01 billion, with four months remaining in the year. The average deal size in August 2026 grew by 26% year-over-year to $24.6 million, reflecting a trend of fewer but larger transactions.
