New York tech is taking over finance and entertainment. Here’s how

New York City isn’t immune to the problems facing other major cities. Office vacancies are still expected to peak at 19% in 2025. Commercial real estate is wobbling. And the cost of living is pushing some founders and teams elsewhere.

But there’s momentum:

More than $3 billion in venture funding has gone to NY startups in the first quarter of 2025. 

Midtown Manhattan offices saw over 5 million square feet in leases in January and February, up 49% over the same period in 2024.

Conferences like NY Tech Week have over a thousand events, and attract tens of thousands of founders to the city. 

As big banks scale back and traditional media retrenches, tech startups are filling the void, with scrappier models, better data, and real staying power.

Fintech is at the heart of New York’s startup ecosystem

New York has always been the financial capital of the world. But over the last few years, it has emerged as a powerhouse for financial technology. In 2024, NYC-based fintech startups raised $6.9 billion in VC funding, surpassing Bay Area fintech startups, which raised $5.3 billion.  

Kalshi, the financial exchange platform that allows users to trade on the outcome of real-world events closed a $185 million Series C in April, led by Sequoia Capital and Y Combinator, bringing its valuation to $2 billion. 

Casap, an AI-powered fraud prevention platform closed a $25 million Series A round in August, bringing its total funding to $33.5 million. 

Ethic, a tech-enabled asset management firm, secured $64 million in Series D funding in April from State Street, bringing its valuation to $700 million. 

NYC’s edge? It’s still where the world’s biggest banks, hedge funds, and regulators sit. If your product needs to integrate with legacy systems, meet institutional standards, and scale fast, New York is where deals get made. 

Entertainment tech is exploding in New York 

Hollywood might be in LA, but media is still New York’s turf. And in 2025, a new breed of entertainment startups is building the tools for creators, publishers, and studios to thrive in a post-streaming, post-TikTok world.

RunwayML, a generative video platform born in NYC, now powers visual effects pipelines for Netflix, HBO, and thousands of indie creators. It raised $308 million in Series B funding in April. 

Splice, the music production platform backed by Goldman Sachs, just rolled out a royalty-free AI composer used by over 6 million musicians. In April, Splice acquired UK-based orchestral sound library Spitfire Audio for approximately $50 million. 

Novig, the pear-to-pear sports betting platform, just raised a $18 million Series A in August with backing from Forerunner and Y combinator. 

NYC gives these startups something LA can’t: proximity to Madison Avenue, the music industry’s business headquarters, global media buyers, and sports teams. In other words, they’re building where the deals get done.

Are you a New York tech startup looking to tell your story? Contact Mind Meld PR today.