Index Ventures, a venture capital firm, is expanding its team in New York City. The firm aims to hire another investor and add three to four new team members within the next year. This aggressive addition will bring the current team of 10 members to a significant size.
Shardul Shah, a partner at Index Ventures, believes that New York has a lot to offer, especially when it comes to accessing customers. Unlike San Francisco, New York has a dense pool of customers, particularly in the health and financial industries. This advantage can help companies grow more sustainably.
Index Ventures has already had success in New York with portfolio companies like Datadog and Cockroach Labs. The firm has a history of expanding into new geographies, opening its New York office in 2022.
The East Coast venture capital scene is thriving, with New York being the second-largest ecosystem in the US. Startups in New York raised $12.6 billion in the first half of 2024, although this is dwarfed by the $40.4 billion invested in California startups.
Despite having fewer large exits, Index Ventures believes New York has plenty of potential for growth. The firm is confident in its ability to fund startups and says that venture capital is not exclusive to the West Coast.
Shah pointed out that it’s not accurate to say that venture capital only happens on the West Coast. Instead, Index Ventures is focusing on capitalizing on the New York ecosystem and energy to build successful startups.
