Sunday May 20, 2018

NY’s Emerging Tech Sector Has its Challenges to Face

Downtown New York

Downtown New York (Photo credit: sreevishnu)

NY has not yet produced a company comparable to Facebook or Google, which were founded o/based in Silicon Valley. However, according to CNET, business and civic leaders in NY are hoping to change that. It was reported that recently the tech and start up industries in NY have been growing at a rapid rate. This month, a panel discussion was held in Chelsea which focused on brainstorming ideas for how to continue to improve the tech industry here. Participants included venture capitalists and city representatives, such as Raymond Kelly, commissioner of the NY Police Department. The event was hosted by the Center for and Urban Future and the Association for a Better New York (ABNY), which ranked NY as the country’s second largest center for tech start ups, surpassing Boston.

Some at the conference were upset when they were reminded that NY had not yet produced a major tech startup, and though the city has come a long way, it still has obstacles to overcome. Such as:

  • access to venture capital and a more engineering-based talent pool
  • real estate in NY is more expensive, which means higher costs for companies from the beginning
  • a lack of broadband access in the city, which was given a B rating

Though, CNET mentioned that the rent is high because of the high demand for living space in NY,  according to an ABNY study, NY is the fastest growing tech hub in the country. Additionally, it was noted that Mayor Bloomberg is taking initiative in making NY more affordable by helping to open new and less expensive neighborhoods.