Founders Workshop - City Research by Loans and Funding

Goals

For each of the largest 20 cities in the United States by population, to provide the number of small business loans and the average amount of the loans, the number of angel and VC funding and the amount of funding, and the number of software development services companies in the city. This will be used to inform marketing strategies.

Early Findings

The Largest Cities in the US by Population

  • According to MacroTrends, the 20 largest cities in the US in 2020 are New York City, Los Angeles, Chicago, Houston, Dallas-Fort Worth, Miami, Atalanta, Philadelphia, Washington DC, Phoenix, Boston, Detroit, Seattle, San Francisco, San Diego, Minneapolis, Tampa, Denver, Las Vegas, Riverside-San Bernardino.

New York

Angel/VC Funding

  • In New York City, in 2018, there were 1,216 VC deals, with angel funding worth $1.1 billion while VC funding aggregated to $13.2 billion ($5.7 billion for early VC funding and $7.5 billion for late VC funding).
  • This brings the total funding amount in 2018 to $14.3 billion (i.e., $1.1 billion + $13.2 billion)
  • This shows that the average amount of funding is about $11.760 million (i.e., $14.3 billion / 1,216).
  • In 2019 (as of Sept. 5), there were 842 VC deals. Angel funding was $792 million, early VC funding was $4.1 billion, and late VC funding was $10.7 billion.
  • This brings the total funding amount in 2019 to $15.592 billion (i.e., $792 million + $4.1 billion + $10.7 billion) and the average funding to approximately $18.518 billion (i.e., $15.592 billion / 842).

Small Business Loans

  • TD Bank, the #1 of the top NYC SBA lenders of 2018, "funded 898 SBA loans and $67.2612 million total loan volume to New York small businesses."
  • It appears that there are multiple loan portfolios from various lenders that are offered to small businesses in New York (state). Hence, it's a bit challenging to round up the loan volume or to derive the average loan for New York City. For example, according to the Office of the State Comptroller, "the New York Business Development Corporation (NYBDC) provides capital for small business loans throughout the State. And as of March 31, 2018, 1,139 loans totaling $393 million had been made through NYBDC to companies providing a total of more than 23,000 jobs."

Software Development Service Companies

  • Crunchbase, a company database, curates about 208 software development companies in New York City — including companies such as Andela and DIgitalOcean.
  • Clutch.co also provides a list of 379 software development companies in New York City.

Summary

  • During our preliminary research, we could establish the largest cities in the US based on population.
  • For the largest of them all, New York City, we could provide and triangulate the number of angel and VC funding (or deal count) and the average amount of funding for the city.
  • We could also provide insights into the number of software development services companies, as provided by popular company directories.
  • However, we could not provide the number of small business loans and the average amount of the loans, as more research may be needed to triangulate an estimate.

Proposed next steps:

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