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Thursday August 21, 2014

Tech Startups Across USA Head for NY #IWNY

Photo: Lloyd Trufelman

Companies have been known to leave NY as their ranks swelled and they could not afford the rent and employee salaries.  But, for tech companies, NY is the new destination for growth possibilities, according to Crain's NY Business.  Ex-Boulder, CO-based Next Big Sound, analyzer of data for the music industry, found a home in burgeoning Silicon Alley.  Alex White, CEO of the company, said, "our clients are in New York.  It'll cost us more, but the ability and speed with which we're able to develop products will be accelerated."

Drawn by the thriving ecosystem funded by private investors and incubator labs, companies like Tykoon, a platform to teach children about money, left Charlotte, NC in January to have access to software developers.  Spling, a social media startup from Philadelphia, PA, came to the city in April because company co-founder Josh Miller "missed the grit and grime."

To get his business to the next level, Charles Phillips, CEO of ex-Atlanta, GA-based Infor, said, "we needed to build a strategy around innovation."  This move will help Infor modernize its business software products and Phillips believes, in comparison with Silicon Valley, that NY would be "younger and more aggressive and take more risks."

Engineers in the city number fewer than that of Silicon Alley, however, there are less companies competing for the talent.  "I would argue New York has a better ratio of data scientists to startups," said Roger Ehrenberg of NY-based IA VenturesMark Bruinooge, co-founder of Tykoon, said, "it's an easy place to meet and connect and collaborate, and evolve an idea very quickly."