Its not surprising that, the New York City is now staking a serious claim as the ‘new’ Silicon Valley. New York is one of the most instantly recognizable cities on the planet, featured in a host of iconic films and TV shows. It is the financial center of the United States and is home to over eight million Americans.
Silicon Valley is the name given to the southern part of San Francisco that plays host to a selection of the world’s most influential tech companies, from Google to Airbnb and Apple to Facebook. The Balance explains how the first major company to succeed there was Hewlett Packard, but for many years now, tech startups have flooded to California looking to draw on their pool of talent and take advantage of the expertise the area has to offer. Now, New York is a serious rival to Silicon Valley’s status as the tech startup capital of the world.
After the San Francisco Bay area, we named New York as the second startup city to watch out for this year, with the likes of Commonbond and UiPath shining examples of companies thriving on the east coast. Whilst New York has plenty of attractive attributes that bring startups to the area, it is not the most straightforward state for starting a business. In a guide to starting an LLC in New York by ZenBusiness, they note that different counties, such as Queens, have different publication costs. New York is also one of the few states to demand an official operating agreement for the company. That has not hindered the number of startups in the area though and those small hurdles are far outweighed by the other lucrative and attractive reasons startups are attracted to the city.
One of the most attractive factors for tech startups in New York is the population density. With so many companies and people packed tightly into one area, logistics are not a problem and it is possible to hold multiple meetings per day with different companies and not have to worry about leaving the city. That also means more talent and potential in a dense area too, not only in terms of potential clients but also employees and investors. Inside Higher Ed reveals that job creation in New York has grown quickly in the last 15 years and the tech industry is one of the fastest-growing, with pay a key driver. With good wages, more talent is coming to the area and with them comes the opportunity.
Outside investment is another area where New York has a unique selling point for startups; being the core financial center for the US means there are more people with money looking to invest and develop new businesses. The variety of potential investors provides entrepreneurs with numerous opportunities to scale and grow their startup.
Finally, whilst specific technology expertise is the key to Silicon Valley’s success, the opposite is appealing in New York. The wide range of industry and business in such a small area presents a real opportunity for tech startups to diversify and find their niche. Fashion, media, finance and retail all have key hubs in the city and a strong tech startup concept could help transform their industries. Tech companies do not merely work with each other, nor do they stay in their own lane in terms of the services they offer. Instead, they look to revolutionize other industries, with Airbnb a key example; they found a niche within the travel sector that requires them to work with another industry to deliver success.
With such a diverse and assorted range of industries based in a relatively small area, the attraction for startups is clear and obvious.