New York startups notched 21 funding rounds of $50M+ in Q1 2026
New York’s venture engine opened 2026 with momentum: 21 city-based startups closed funding rounds of $50 million or more in the first quarter, according to Crunchbase data. The tally underscores New York’s standing as one of the world’s most active markets for startup financing.
The roster spans consumer electronics, AI infrastructure and enterprise software, reflecting the breadth of the city’s tech scene. Among the recipients, Eight Sleep closed a Series D to expand its connected sleep systems, which offer temperature regulation, biometric monitoring and adjustable bed features.
The company, founded in 2014 by Alexandra Zatarain, Andrea Ballarini, Massimo Andreasi Bassi and Matteo Franceschetti, counts General Catalyst, Craft Ventures, HSG, Gaingels and 8VC among its backers. Investors in the round included Founders Fund, HSG, Tether Ventures, Valor Equity Partners and Y Combinator.
In the hardware stack for artificial intelligence, Normal Computing raised a venture round to advance semiconductor technology for AI systems. Founded in 2022 by Faris Sbahi and Matthias Tan, the company has raised a total of $84 million in equity funding and is backed by Samsung NEXT, First Spark Ventures, Celesta Capital, Drive Capital and Galvanize.
Investors in the round included ArcTern Ventures, Brevan Howard Asset Management, Celesta Capital, Drive Capital, First Spark Ventures, Galvanize, Micron Ventures and Samsung Catalyst Fund. Enterprise platforms also featured. Pepper secured a Series C to build out its AI-powered ecommerce platform for food distributors and suppliers.
Founded in 2019 by Bowie Cheung, Chetan Narain and Ivana Tesanovic, Pepper has raised $100 million in total equity financing. The company is backed by Gaingels, Index Ventures, BoxGroup, Greylock and ICONIQ Growth; investors in the round included Greylock, Harmony Partners, ICONIQ Growth, Index Ventures, Interplay and Lead Edge Capital.
In health tech, Alaffia Health closed a Series B for its AI platform that automates clinical review workflows in health plan claims operations. The startup was founded in 2020 by Adun Akanni and TJ Ademiluyi and has raised $71.6 million in total equity funding.
Its investors include Plug and Play, FirstMark, Hustle Fund, Transformation Capital and Anthemis. Participants in the round included FirstMark, Tau Ventures, Transformation Capital and Twine Ventures. Legal technology also drew funding: Crosby, founded in 2024 by John Sarihan and Ryan Daniels, raised a Series B for AI-powered contract review and negotiation software.
The company has raised $85.8 million in total equity funding and is backed by Sequoia Capital, Index Ventures, Bain Capital Ventures, Lux Capital and 01 Advisors. Investors in the round included 01 Advisors, Bain Capital Ventures, Elad Gil, Index Ventures, Lux Capital and Sequoia Capital.
The concentration of large Q1 financings—21 rounds at $50 million or more—offers a clear signal that investor appetite for New York startups remains strong across sectors, from connected consumer devices to AI infrastructure and workflow automation.