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The Rise And Future Of The New York Startup Ecosystem


The Rise And Future Of The New York Startup Ecosystem TechCrunch

The Rise And Future Of The New York Startup Ecosystem TechCrunch

Source: http://techcrunch.com/2014/02/28/the-ris...

As optimistic as I am, it’s always useful to check one’s optimism with data. The data takes some work to pull together, and not all of it is public. But when one does pull it together, it paints a very promising picture, one showing that New York has been the fastest-growing technology startup ecosystem in the country over the past 10 years and now ranks second behind Silicon Valley in all key metrics.

These trends suggest strong continued momentum for New York, but if one really wants to get a good sense of where the ecosystem is going, it’s important to take a close look at the primary factors driving its growth. Other technology startup ecosystems have had periods of rapid growth only to slow down substantially when the macro factors driving their growth dissipated.

A close examination of the macro factors driving New York’s growth suggests that the ecosystem is still in the early stages of its development and that its rapid growth will likely last for many years.

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Hmmm...

he last 10 years have seen an increasing number of startup successes in New York. ShutterstockTumblrAppNexusGilt GroupeMongoDBEtsyBuddy MediaWarby ParkerKickstarterGerson Lehrman, and OnDeck Capital are among them, and there are many others on the rise.

Okay, but compare that with the biggest startups in Silicon Valley in the last 10 years: Facebook, Twitter, LinkedIn, WhatsApp, Palantir, Dropbox, Workday, Pinterest, Airbnb, Stripe, and so on, and so on.

All the biggest companies are started in Silicon Valley / the Bay area.

That can't be random coincidence.

New York's main strengths are advertising tech, financial tech, and marketing tech:

After 2001, New York saw the emergence of a new and substantially larger set of digital companies in the major industries it dominates. In adtech, a large new group of companies emerged to take advantage of the rapid growth in online traffic and in the proliferation of new media, advertisers, devices, ad formats and targeting data, cementing the city’s position as the leading city for pure adtech (i.e. adtech not connected to large consumer applications such as Google, Facebook or LinkedIn). Notable in this group are AppNexusRight MediaMediaMathVibrant MediaTremor VideoQuigoTacodaOutbrainIntent MediaDstillery and Moat.

A large set of new financial tech companies emerged after 2001, including not only products and services for the financial services industry, such as FX AllianceLiquidNetTraianaData Explorers and Dataminr; but also new, Internet-driven financial services providers, such as OnDeck CapitalLenddo and CommonBond; and new consumer information services, such as LearnvestBillguard and Betterment.

Similar dynamics can be seen in other verticals where New York is strong, including marketing services (Buddy MediaYextYodle), media (Huffington PostBusiness InsiderMashableBuzzfeed), real estate (Urban CompassStreetEasy), recruiting (IndeedTheLadders), fashion (Gilt GroupeBonobosRentTheRunwayModa Operandi) and design (1stDibsBehance).

Reflecting the breadth of its creativity, New York has also seen a surge of successful consumer startups in a variety of areas completely different to these (TumblrEtsyOLXWarby ParkerFancyZocDocCodecademyBirchboxFoursquareVenmo) and a number of promising enterprise software companies (MongoDBSmartlingConductor), as well. It has also become an innovation leader in such diverse areas as product financing platforms (KickstarterQuirkySee.Me), 3D printing (MakerbotShapeways) and collaborative workspaces (WeWork).

A lot of this ecosystem evolved out of Doubleclick: "Doubleclick famously has given rise to dozens of successful startups including Gilt GroupeMongoDBBusiness InsiderRight MediaMoatCatchpoint and many others."

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