May 20th, 2016

New York City Struggles in Tech Industry

Category:Hara Partners | Posted By Mai Erne at 10:55 PM

New York City

New York City is struggling in the tech industry. The financial capital of the world is having trouble getting tech companies to do business here. This struggle is partly due to the tech boom in Silicon Valley. Now this is not to say that there isn’t a tech industry in New York, there are thousands of jobs in web design and development. After all, Union Square Design is based in New York. Also the city has pulled in $1.94 billion in this industry. However, that is quarter of what companies made in Silicon Valley.

What is New York Doing?

What is New York doing to help curve the tech industry back to New York and away from California? There is a startup called Tech:NYC, which is a non-profit that is trying to get more tech companies to come to New York City. The company works as a lobbyist firm to help with laws, rents, and prices to keep tech companies here. The Executive Director of Tech:NYC, Julie Samuels, has helped work with companies to stay in the city.

“New York is in a competition to be where startups are going to locate and bigger tech companies are going to grow second and third offices,” Samuels said.

Have These Tactics Worked?

Have these tactics worked to keep companies from moving to California? Yes and no. The problem with the city struggling to keep startups is startups are risky. Those companies aren’t looked for when venture capital firms are looking for clients. They look for a broad portfolio, not someone who started last month. So there might not be anything to worry about.

However, there are people who disagree,“Big exits really haven’t happened yet in New York,” said Fred Wilson, cofounder of Union Square Ventures. “It’s a valid criticism.”

Conclusion

The conclusion I draw from all of this paranoia is that we will have to wait and see if these startups actually stay in the city or move to greener pastures.

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