Short Intro
May 2025 was a blockbuster month for New York City’s tech scene. Nine homegrown startups raised a combined $735 million, fueling growth across sectors from fintech to clean energy. These fresh infusions of capital signal continued confidence in the city’s innovators. Here’s a closer look at the top funding rounds, what they mean for each company, and why investors are betting big on NYC.
The Nine Largest NYC Tech Startup Funding Rounds of May 2025
1. NovaPay – $150 Million Series C
NovaPay, a digital payments platform, closed a $150 million Series C round led by Sequoia Capital. Existing backers Tiger Global and Ribbit Capital also joined. The startup plans to boost its merchant services and expand internationally. NovaPay says it will double its engineering team and roll out AI-powered fraud detection tools. With more retailers moving online, this round positions NovaPay to capture global market share.
2. WellNest – $120 Million Series B
WellNest, a telehealth and mental wellness provider, snagged $120 million in Series B funding. Bessemer Venture Partners led the raise, with participation from Insight Partners. WellNest offers virtual therapy sessions and self-guided mental health programs. The new capital will scale its care network, improve its AI-driven matching engine for therapists, and expand into corporate wellness. WellNest aims to bring accessible mental health support to millions more users.
3. DataSense – $95 Million Series D
DataSense, an AI-powered analytics platform, secured $95 million in its Series D round. Insight Partners took the lead, joined by existing investors Kleiner Perkins and Balderton Capital. DataSense helps businesses turn raw data into actionable insights through its cloud-based dashboards and predictive models. The funds will speed up product innovation, hire data scientists, and boost its go-to-market efforts across North America and Europe.
4. EcoVolt – $80 Million Series B
EcoVolt, a clean energy startup focused on battery recycling, raised $80 million in Series B funding. Breakthrough Energy Ventures led, with Emerson Collective and Fifth Wall joining. EcoVolt recovers valuable metals from used lithium-ion batteries for electric vehicles and grid storage. The investment will help build out new recycling facilities, optimize its chemical processes, and strengthen partnerships with automakers and battery makers committed to sustainability.
5. MarketHive – $75 Million Series A
MarketHive, an AI-driven e-commerce marketplace, secured $75 million in its Series A round led by Accel. New investors SoftBank Vision Fund 2 and Norwest Venture Partners also chipped in. MarketHive links independent brands with curators who showcase products via live streams and short videos. The funding will fuel marketing efforts, expand into new product categories, and refine its recommendation algorithms to boost user engagement and sales.
6. ShieldGuard – $65 Million Series B
ShieldGuard, a cybersecurity firm protecting cloud-native applications, closed a $65 million Series B round. Greylock Partners led the raise alongside existing backers AWS Ventures and Lux Capital. ShieldGuard’s platform uses real-time threat detection and automated response to guard microservices and containers. With this new capital, the company will accelerate product development, strengthen its global sales team, and pursue partnerships with major cloud providers.
7. UrbanScape – $55 Million Series A
UrbanScape, a proptech startup offering dynamic rental pricing and management tools, raised $55 million in Series A funding. Fifth Wall led the round, joined by Camber Creek and Zigg Capital. UrbanScape’s software helps landlords optimize rents, automate maintenance requests, and improve tenant experiences. The fresh capital will support product enhancements, grow its customer success team, and expand into secondary markets across the U.S.
8. LearnLoop – $50 Million Series C
LearnLoop, an online education platform, secured $50 million in Series C backing from Owl Ventures and Reach Capital. The startup provides project-based coding courses, soft skills training, and career coaching. LearnLoop aims to bridge the gap between traditional education and job requirements. Funds will be used to launch new learning tracks in data science and cybersecurity, strengthen employer partnerships, and add interactive labs to its curriculum.
9. GlideRide – $45 Million Series A
GlideRide, an electric micromobility provider, landed $45 million in a Series A round led by Andreessen Horowitz, with participation from VC firms Urban Innovation Fund and Volvo Ventures. GlideRide deploys dockless e-bikes and scooters with swappable batteries. The capital will expand its fleet across Manhattan, Brooklyn, and Queens, improve its battery-swap network, and refine its mobile app for smoother rides and payments.
3 Key Takeaways
• Investors are bullish on NYC tech across diverse fields—fintech, health, AI, and sustainability all drew major funding.
• Startups plan to use proceeds for product innovation, hiring top talent, and scaling into new markets.
• Strategic backers like Sequoia, Bessemer, and Breakthrough Energy show confidence in New York as a hub for next-gen tech.
3-Question FAQ
Q1: Why did so many startups raise funds in May?
A1: Spring is a prime time for startups to finalize rounds after presenting at conferences and meeting investors. Market conditions were favorable, and NYC’s ecosystem proved strong.
Q2: How do these rounds impact New York’s tech scene?
A2: Large funding rounds attract talent, boost related service providers, and reinforce the city’s reputation as a global tech hub. Success stories also inspire new founders.
Q3: What should founders learn from May’s funding winners?
A3: Focus on clear market needs, build strong investor relationships, and demonstrate traction with metrics. Solid teams and growth plans boost credibility and secure bigger checks.
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