Tech Startups Gaining New Ground in New York
While Silicon Valley is considered as the heart and hub of tech startup entrepreneurship, a growing number of these startups have discovered the distinctive appeal of New York – where it’s easier to take advantage of advertising and a sort of “small town vibe” emanates everywhere. With many of these companies actually producing and marketing products and apps, media exposure – which New York is famous for – has become all the more crucial. If for this alone, New York has become more a convincing, credible alternative to Silicon Valley, even if several years ago many startups had to pack their stuff and move from the Big Apple to the valley, with the hopes of landing investors there.
In an article published by The New York Times, several start-up company owners shared their insights as to why they are moving east. Qwiki founder Doug Imbruce wanted to settle originally in New York, but the dearth of investors in the state forced him to pack up and move to Silicon Valley in 2009. On February of this year, he decided to move back to New York, with his 15 Qwiki employees, because he wanted to bring his business to the media.
And then there is the issue of not being able to find the right professionals, especially engineers, who are willing to work for New York-based start-ups. Many engineers in the Big Apple find themselves working for finance companies, which offer better salaries than the smaller startups. But Aaron Harris of TutorSpree found a way around this: he looked for engineers from all over and made them move to New York. It’s a win-win situation that works two ways.
Investments for tech startups are beginning to look up in New York as well, as a report released by the Center for an Urban Future pointed to as many as 500 start-ups based in New York obtaining venture financing between 2007 and 2011.