Sunday July 21, 2019

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#FacebookIPO Aftermath: Can The Alley Catch Up to The Valley?

Image representing Facebook as depicted in Cru...

Image via CrunchBase

With Facebook going public, Silicon Valley has bolstered its title as the U.S.’ economic tech giant.  According to Greg David in his Crain’s New York Business Column, the Bay Area’s 12 percent tech representation in the regional job market gives them “an outsize economic edge.”  Which has David wondering if the NY tech scene can ever close gap between the two regions.

David does point to some promising data, that more than 1,000 jobs in the sector have been added since 2007, and that venture capital funding has increased 32 percent.  Pointing to the recent Center for an Urban Future report, “New York appears to be building a sustainable tech sector, one that is benefiting from a much stronger local tech ecosystem than existed in the city’s first wave of tech growth in the 1990s.” Moreover, NY’s tech industry is one of three emerging areas for growth in the cit,y offering good paying jobs and diversifying the city’s economy.  Places like the new Roosevelt Island campus will hopefully become incubators to companies like Facebook, similar to Stanford’s influence in the Bay Area.

Ultimately though,  David believes that the NY tech scene will close gap “eventually,” but it will still take time.   In comparing  Facebook, NY’s top valued startups Foursquare and Gilt Groupe, they are valued at $1 billion — just 1/100th of the Menlo Park giant.

Crain’s New York Business