Life Sciences In New York City: A Thriving Ecosystem A Decade In The Making

Life sciences is a $390 billion industry in the U.S. with the potential to create thousands of new jobs and bolster economic activity at the local level. Over the last decade, consistent public and private sector investment, including a $1.5 billion commitment from New York City and state, has helped ensure that New York continues to capture that potential.

Today, New York is well on its way to becoming a world-class hub for life sciences and is on pace to maintain its top-three spot in life sciences venture capital dollars raised in the U.S. — up from eleventh just ten years ago.

To shed more light on this progress, we are proud to share a new report, which provides an update on industry growth and what it means for the New York region, its residents and economy.

Building an Ecosystem

Historically, New York has been a source of innovative biomedical research but lagged in new startup activity and attracting early-stage VC funding. Without strong investment to support commercialization, the science that came out of New York universities and academic institutions often translated into business creation elsewhere.

To help close the investment (and retention) gap, the Partnership Fund has committed over $50 million to support commercial life sciences in New York while working closely with state and city government to promote industry growth through investments in real estate and workforce development and tax credits. Thanks to increased private and public investment, the commercial life sciences ecosystem has produced strong growth in employment, economic output, and business creation in recent years, with economic output expanding by 78% in New York City since 2013.

Key Takeaways

• Ratio of Private to Public Investment — New York received 77 cents of VC funding for every dollar of NIH funding received in FY 2022, up substantially from 33 cents in 2018 and 10 cents in 2013.
• Job Creation in Life Sciences — New York state life sciences companies added 17,000 jobs over the last decade, with about 94% of the new jobs being added within the last six years. New York City life sciences companies added over 5,000 jobs in 2021 and 2022 alone.
• New Business Formation and Industry Maturation — The number of life sciences companies in the city has increased 6% annually since 2013. In addition, more mature companies have a presence here, with the median pre-money valuation growing from $11 million in 2013 to $28 million in 2022, signaling growing confidence in New York as a destination for life sciences activity.
• Closing the Venture Capital Gap — Despite recent tightening, a decade-long view of the state’s life sciences sector illuminates remarkable growth and notable progress toward closing the gap with industry leaders California and Massachusetts. Over the decade ending FY 2022, life sciences VC funding in New York grew 33% annually.

Get the full report here.

As we celebrate this decade of growth, we are eager to collaborate with our partners in this space to envision the next phase of life sciences in New York, especially as the convergence of tech and life sciences paves the way for biology to reimagine solutions not only in health but also in climate, food, and materials. As it does, we look forward to supporting the innovative entrepreneurs building the next generation of companies that solve real-world problems and contribute to a stronger New York economy.