Following a surge in venture-capital investments, New York’s startup scene is more active than ever, especially in the tech sector. Far from being the next Silicon Valley, New York is actually emerging as a different type of business hub that reunites many industries, such as finance and advertising. According to a 2018 study, New York-based start-ups raised $11.5 billion in venture capital in 2017, which is a whopping $8.9 billion more compared to 2012, surpassing San Francisco and the North Bay Area.
New York opens its gates to the tech sector
Although the current investment rate in New York is far from competing with Silicon Valley, the tech scene has developed considerably, catching the attention of entrepreneurs and investors alike. We can see the change not only in the number of tech companies that are launched every year, but also in the way these are organized on the map. If initially tech companies in New York could only be found around the “Silicon Alley”, now they are popping up everywhere, including in Queens and Brooklyn. What’s more, the tech sector is more diversified, ranging from traditional businesses the likes of Fintech and SaaS, to more modern models such as biotechnology and creative technology.
Tech giants like Google and Facebook set up new offices in New York, contributing to the development of the job market. Today, there are 30% more tech jobs compared to 2008 and, according to Tech:NYC, this is double the rate of New York’s general economic growth. For example, in 2016, New-York based tech companies received more than $9 billion in funding. Naturally, this surge in tech startups also required an adaptation in infrastructure, so investors responded quickly by opening dedicated office spaces, open offices and co-working spaces.Read Complete Article