Many IT jobs are coming to New York by way of small business, as the city reemerges as a hub for start-ups and venture capital dollars. PriceWaterhouseCooper ranks the New York region at No. 4 in total VC investment, after Silicon Valley, Los Angeles and Boston. But as far as funding for software companies, New York ranks only behind Silicon Valley.
Money begets talent that begets more money, and the region is finally hitting a tipping point. It’s hard to gauge the number of start-ups in the region because new ones are popping up all the time, but next month the New York Venture Capital Association will sponsor it’s first ingenuity conference featuring the newest companies.
Seen This Before?
As compared to the 1990s bubble and bust, VCs are investing far less money per start-up because it takes far less money to get one off the ground. Today, VCs are betting on software companies, when in 90s start-up money went to more costly semiconductor and hardware firms, which required more and centralized space. Today operations can be virtualized and many fledgling firms don’t want to give up a large chunk or stock for initial investments. This leaves more VC money for more start-ups.
Go East Young (Wo)man
Seth Besmertnik of Conductor is seeing the trend toward New York firsthand. He has some tips on how to attract people from Silicon Valley to New York. Among them: "…stop seeing technology in New York as something so young and new (and therefore) risky."
However, a lot of talent is already here. Foursquare founder Erin Gleason was "able to find plenty of great talent in New York" in 2009 when the company was founded.
– Dino Londis