Thursday May 24, 2018

Despite Facebook and Google, NY Tech Scene is Still Fragile, Says Neumann

Image representing 33Across as depicted in Cru...

Image via CrunchBase

According to Angel investor Jerry Neumann, the politics of innovating are difficult because wherever there is change there is always some one who wants to maintain the status quo. Neumann, who backs NY-based tech companies including Yieldbot, 33Across and PlaceIQ, said big companies change by making their products cheaper. He told Xconomy that true innovation is disruptive change—the kinds of things big companies can’t copy.

He also said tech giants like Facebook and Google hinder the growth of the NY tech sector. When Wall Street went bust a few years ago, engineers moved into the tech sector and worked for less pay in exchange for equity. But now startups are having a harder time finding engineers.

NY’s tech scene is still fragile, he said.  It’s an expensive city, making it hard to pay startup employees enough to live on. “New York needs to be careful and supportive to keep this growing,” he told Xconomy.

As for 33 Across, Xconomy also took a look recently at the NY startup, which gathers the data from the interactions between social media users and identifying potential customers based on the recommendations they give to people they are connected to. With this new power, however, comes the argument of privacy. That is why 33Across does not actually identify user names and personal information.and utilize the massive amounts of consumer data stored in social media outlets.

Also, according to Xconomy, the company is getting a nice head start, following their acquisition of Tynt Multimedia, which allowed them to gain access to over 1.25 billion user data. This marks leap for brands and publishers, which use these databases to target their audiences.