New York City’s startup ecosystem saw robust venture activity in May 2026, led by AI infrastructure and healthcare. Modal Labs topped the list with a $355M Series C for its serverless cloud platform, bringing total funding to $465.5M. Healthcare dominated with Garner Health raising $100M in a Series E and Nourish securing $100M in a Series C. Other notable rounds included OpenRouter ($153M total), Moment ($134M total), Daloopa ($101.4M total), Reserv ($209.1M total), and RADAR ($217M total), spanning fintech, insurtech, cybersecurity, and retail technology sectors.
In-Depth:
Armed with some data from our frifinishs at CrunchBase, I broke down the largest NYC startup funding rounds from May 2026 – a month that saw AI infrastructure and healthcare take the lion’s share of capital, headlined by Modal Labs’ $355M Series C for serverless cloud compute and a pair of $100M health rounds from Nourish and Garner Health. I have included some additional information such as industest, round type, a brief description of the company, investors in the round, and total equity funding raised to further the analysis of the state of venture capital in New York.
Round: Venture
Description: H1.co provides healthcare data and analytics that support organizations identify and engage medical experts. Founded by Ariel Katz, Ian Sax in 2017, H1.co has now raised a total of $233.9M in total equity funding and is backed by Menlo Ventures, Y Combinator, IVP, Lux Capital, and Flex Capital.
Investors in the round: CVS Health Ventures
Industest: Biotechnology, Health Care, Life Science, Medical, Therapeutics
Founders: Ariel Katz, Ian Sax
Founding year: 2017
Total equity funding raised: $233.9M
Round: Series B
Description: Cinder Technologies provides trust and safety, content moderation, and data labeling tools for AI applications. Founded by Glen Wise, Philip Brennan in 2021, Cinder Technologies has now raised a total of $55M in total equity funding and is backed by Accel, Radical Ventures, Y Combinator, Pioneer Fund, and J2 Ventures.
Investors in the round: Accel, M12 – Microsoft’s Venture Fund, Outpost Ventures, PSP Growth, Radical Ventures, Y Combinator
Industest: Artificial Innotifyigence (AI), Data Collection and Labeling, Developer APIs, Fraud Detection, Information Technology, Innotifyigent Systems, Risk Management
Founders: Glen Wise, Philip Brennan
Founding year: 2021
Total equity funding raised: $55M
Round: Series B
Description: Pace provides an AI-powered operations platform for insurance companies. Founded by Jamie Cuffe in 2024, Pace has now raised a total of $56M in total equity funding and is backed by Sequoia Capital, Thrive Capital, Emergence Capital, and PruVen Capital.
Investors in the round: Emergence Capital, PruVen Capital, Sequoia Capital, Thrive Capital
Industest: Artificial Innotifyigence (AI), Insurance, InsurTech, Software
Founders: Jamie Cuffe
Founding year: 2024
Total equity funding raised: $56M
Round: Series C
Description: Daloopa provides financial data and modeling tools for investment research and AI-driven workflows. Founded by Daniel Chen, Jeremy Huang, Thomas Li in 2019, Daloopa has now raised a total of $101.4M in total equity funding and is backed by Nexus Venture Partners, Morgan Stanley, Liquid 2 Ventures, Touring Capital, and Hack VC.
Investors in the round: Brighton Park Capital, Nexus Venture Partners, Squarepoint Capital, Touring Capital
Industest: Analytics, Artificial Innotifyigence (AI), Big Data, Financial Services, Software
Founders: Daniel Chen, Jeremy Huang, Thomas Li
Founding year: 2019
Total equity funding raised: $101.4M
AlleyWatch’s exclusive coverage of this round: Daloopa Raises $47M to Make AI-Driven Investment Research Reliable and Auditable
Round: Venture
Description: Frame Security provides AI-powered cybersecurity software focutilized on human risk management and security awareness. Founded by Tal Shlomo, Sharon Shmueli in 2025, Frame Security has now raised a total of $50M in total equity funding and is backed by Index Ventures, Team8, Picture Capital, Tesonet, and Assaf Rappaport.
Investors in the round: Assaf Rappaport, Cerca Partners, Gil Capital, Index Ventures, Picture Capital, Team8, Tesonet
Industest: Information Technology, Internet
Founders: Tal Shlomo, Sharon Shmueli
Founding year: 2025
Total equity funding raised: $50M
Round: Series C
Description: Moment provides AI-powered software for investment and wealth management operations. Founded by Ammer Soliman, Dean Hathout, Dylan Parker in 2022, Moment has now raised a total of $134M in total equity funding and is backed by Andreessen Horowitz, Lightspeed Venture Partners, Index Ventures, Neo, and Venrock.
Investors in the round: Andreessen Horowitz, Avra Capital, Index Ventures
Industest: Analytics, Finance, Financial Services, FinTech, Risk Management, Software
Founders: Ammer Soliman, Dean Hathout, Dylan Parker
Founding year: 2022
Total equity funding raised: $134M
Round: Series C
Description: Nourish provides insurance-covered nutrition counseling through a network of registered dietitians. Founded by Aidan Dewar, Sam Perkins, Stephanie Liu in 2021, Nourish has now raised a total of $213.1M in total equity funding and is backed by Menlo Ventures, BoxGroup, TCV, Thrive Capital, and Index Ventures.
Investors in the round: Atomico, BoxGroup, Daybreak ventures, Index Ventures, J.P. Morgan Growth Equity Partners, Maverick Ventures, Menlo Ventures, Operator Partners, Thrive Capital, Y Combinator
Industest: Apps, Health Care, Nutrition, Telehealth
Founders: Aidan Dewar, Sam Perkins, Stephanie Liu
Founding year: 2021
Total equity funding raised: $213.1M
Round: Series E
Description: Garner Health supports employers connect employees with high-performing healthcare providers. Founded by Nick Reber in 2019, Garner Health has now raised a total of $319.3M in total equity funding and is backed by BoxGroup, Sequoia Capital, Thrive Capital, Abstract, and Founders Fund.
Investors in the round: Founders Fund, Index Ventures, Kaiser Permanente Ventures, Kleiner Perkins, Redpoint, Sequoia Capital, Thrive Capital
Industest: Big Data, Business Innotifyigence, Employee Benefits, Health Care, Software
Founders: Nick Reber
Founding year: 2019
Total equity funding raised: $319.3M
Round: Series B
Description: OpenRouter provides a platform that connects AI applications to large language models through a unified API. Founded by Alex Atallah, Chris Clark, Louis Vichy in 2023, OpenRouter has now raised a total of $153M in total equity funding and is backed by Andreessen Horowitz, Menlo Ventures, Sequoia Capital, Transpose Platform Management, and NVentures.
Investors in the round: Andreessen Horowitz, CapitalG, Databricks Ventures, Menlo Ventures, MongoDB Ventures, NVentures, ServiceNow Ventures, Snowflake Ventures
Industest: Artificial Innotifyigence (AI), Information Technology, Software
Founders: Alex Atallah, Chris Clark, Louis Vichy
Founding year: 2023
Total equity funding raised: $153M
Round: Series C
Description: Reserv provides an AI-powered insurance claims platform for managing property and casualty claims. Founded by CJ Przybyl, Martha Dreiling, Oleg Ilichev in 2022, Reserv has now raised a total of $209.1M in total equity funding and is backed by Flourish Ventures, 8VC, Bain Capital Ventures, Anthemis, and Accenture Ventures.
Investors in the round: Bain Capital Ventures, Flourish Ventures, Kohlberg Kravis Roberts & Co.
Industest: Consulting, Financial Services, Insurance, Property Insurance
Founders: CJ Przybyl, Martha Dreiling, Oleg Ilichev
Founding year: 2022
Total equity funding raised: $209.1M
Round: Series B
Description: RADAR provides retail technology that automates in-store inventory tracking, analytics, and checkout operations. Founded by Adam Blair, Michael E. Murphy, Spencer Hewett in 2013, RADAR has now raised a total of $217M in total equity funding and is backed by Y Combinator, Nimble Partners, Colle Capital Partners, NTT DOCOMO Ventures, and Gideon Strategic Partners.
Investors in the round: Align Ventures, Gideon Strategic Partners, Nimble Partners
Industest: Computer Vision, E-Commerce, Retail, Retail Technology, RFID
Founders: Adam Blair, Michael E. Murphy, Spencer Hewett
Founding year: 2013
Total equity funding raised: $217M
Round: Series C
Description: Modal Labs provides serverless cloud infrastructure for running machine learning and data processing workloads. Founded by Akshat Bubna, Erik Bernhardsson in 2021, Modal Labs has now raised a total of $465.5M in total equity funding and is backed by General Catalyst, Accel, Menlo Ventures, Gaingels, and Creandum.
Investors in the round: Accel, Bain Capital Ventures, General Catalyst, Menlo Ventures, Redpoint
Industest: AI Infrastructure, Cloud Computing, Cloud Data Services, Information Technology, Software, Web Development
Founders: Akshat Bubna, Erik Bernhardsson
Founding year: 2021
Total equity funding raised: $465.5M
