Everyone knows New York as a business hub for well-known media, commerce, and fashion. However, according to SeedTable.com, over 127 startups were founded in the New York tech scene last year. That is almost as many as the 131 that launched in Silicon Valley. Why is that?
The Growing Tech Scene
Experts say that while New York has become a top location for tech start-ups, they don’t overlap with Silicon Valley. These NY start-ups focus on different sectors. Rather than focusing on pure tech, New York tech startups epitomize trendy NY culture, with a splash of creativity. For example, Etsy, based in Brooklyn, recently blew up the web space with its arts & craft eCommerce site. On the other hand, BuzzFeed launched in New York City to focus on social news due to the city’s proximity to the media industry.
Made in NY
In February of 2013, Mayor Michael Bloomberg launched a “Made in NY” campaign. The initiative promoted the launch of tech startups in the Big Apple. With this campaign, companies who complete 75% of their development in New York City will be able to promote themselves with a “Made in NY” logo. They will use a design similar to the ones seen in movies or television shows. The company will add themselves to an interactive map of 600 other startups (grown in New York) across the five neighborhoods of the city. Other perks include subsidized office space, a listing space for job postings, and being able to apply for funding through a government program and training grants. With the implementation of this campaign, it has become more favorable than ever to launch a startup in NYC.
While Silicon Valley is known for its technology industry, it is important to note that the Big Apple is much more diverse, both occupationally and demographically. However, New York’s diversity is positive, as many tech companies have opened NYC offices in order to hire from a broader talent mix.
Although their tech scene continues to trail Silicon Valley, New York has established itself a permanent start-up hub. Its entertainment-focused and fast-paced culture is just another reason why people are eager to move to NYC. As Rachel Sterne, NYC’ s Chief Digital Officer, said, “The message is loud and clear: New York is open for business.”
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