Funding for New York Fintech Startups Expected to Double in 2013

One surprising fact that emerged from today's FinTech Innovation Lab "Demo Day" today at Credit Suisse's New York City headquarters was that investment in early stage New York financial technology companies is skyrocketing.

Investors have already put more money into these startups (around $22 million) in the first half of this year than in all of 2012. By the end of this year, these companies are expected to receive around $43 million in funding. They've received $879 million in 119 deals cut since 2008, according to a report put out today by the FinTech Innovation Lab, the Partnership Fund for New York City, Accenture and CB Insights.

Across the country, $9.03 billion has been invested in young fintech companies in 1,314 deals since 2008. Notable fundraises in the first half of 2013 include high-speed electronic trading technology producer SR Labs, which received $53 million in growth equity, and On Deck, a data-driven online small business lender, which reaped $42 million in Series D dollars.

What types of companies are reeling in the capital? According to the study, 29% create technology for banking and finance, 10% for capital markets, 19% for data analytics (related to financial services in one way or another), 28% for payments and 14% for personal financial management. The amount of funding going to fintech companies that focus on banking and corporate finance software jumped significantly from $172 million in the first quarter to $222 million in the second quarter.

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