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Saturday April 19, 2014

NY Startups are catching up to #SiliconValley

New York City

New York City (Photo credit: kaysha)

The rapidly emerging NYC tech scene, is often compared to Silicon Valley and Venture Beat writer Hadley Harris did just that in a recent post.

NY has seen a 32 percent growth in Venture Capital deals from 2007-2011 and tech related jobs have increased 28.7 percent since 2007, but the tech scene is different than in Silicon Valley.

According to Harris, one of the differences between the two cities is funding. In NY, the ratio between investors and start-ups is more skewed because there are not enough mid sized investors, so the start-ups are receiving significantly less funding than in Silicon Valley. Harris said that this will change as more start-ups gain solidity. He also suggests that the East coast has a broader mix of talent and the way in which NY blends fashion with technology in start-ups such as Etsy and OnSwipe. Last, he claims that Silicon Valley-based companies are more concerned with growth than engagement and in NY that is less of a problem.  In the new year, Harris said Silicon Valley start-ups will begin taking cues from their counterparts in NYC.

Venture Beat