Tumblr tops New York, nation, for top VC-backed acquisitions

The sun reflects off New York's One World Trade Center as people stand in a park in Hoboken, New Jersey

The New York region was home to the largest exit of U.S.-based venture-backed tech company during the year: Tumblr.

Yahoo paid $1.1 billion for Tumblr, which raised $125 million in funding from Draper Fisher Jurveston, Union Square Ventures, Spark Capital and Greylock Partners.

But it wasn’t the only large exit in New York.

MakerBot, a maker of 3D printers, was sold to Stratasys in a deal worth up to $604 million. The Brooklyn, N.Y.-based company raised just $10 million in venture capital in 2011 from Foundry Group, Lerer Ventures, RRE Ventures, Bezos Expeditions and True Ventures.

James Robinson IV, managing partner at RRE Ventures, said he is optimistic about future deals for the region.

“We’re going to see 10-digit exits” in the region, he said. “[There are] half a dozen companies here that have not exited but that have valuations approaching or in some cases exceeding $1 billion dollars.”

New York also saw five venture-backed IPOs, the most since 2007: Cancer Genetics, Regado Biosciences, PTC Therapeutics, Tremor Video and Ophthotech.

And for the first time, the New York metro area is on track to surpass New England in number of venture deals in 2013. Behind only Silicon Valley, New York saw 315 deals in the first three quarters of the year.

Yet New England still exceeded New York with $2.4 billion in deal volume, compared to $2 billion. In comparison, Silicon Valley saw $8.8 billion in venture investment during the same time period, according to data provided by the National Venture Capital Association.

This story first appeared in Reuters Venture Capital Journal. Subscribers can read the entire original story here. To subscribe to VCJ, please email Greg.Winterton@ThomsonReuters.com.

Photo of the sun reflecting off New York’s One World Trade Center as people stand in a park in Hoboken, N.J., Sept. 29, 2013. REUTERS/Gary Hershorn

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