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For Tech Start-Ups, New York Has Increasing Allure (Silicon Valley has a rival)
New York Times ^ | 05/27/2012 | By JOSHUA BRUSTEIN

Posted on 05/28/2012 6:34:55 AM PDT by SeekAndFind

When Doug Imbruce wanted to start an interactive video company in 2009, he had no luck finding investors in New York. So he moved to Silicon Valley — where venture capitalists were receptive to his pitch — and founded Qwiki.

But in February, he decided that being so far away from the nation’s big media companies was stifling his start-up’s growth. So he moved back to New York, bringing the company with him. Qwiki, with 15 employees, now operates out of a SoHo loft space.

“We went to Silicon Valley because they understood how big we wanted to get,” Mr. Imbruce said, “and we moved back to fulfill that promise.”

The recent burgeoning of New York’s Internet industry has forced some entrepreneurs — who, just a few years ago, might have felt they had little choice but to head west to pursue their dreams — to make a difficult choice. New York is now enough of an attractive alternative that a few West Coast-born start-ups are even packing up and moving east.

Much of this change has to do with the way that the technology industry has shifted toward creating consumer products and applications, rather than building the basic framework of computing and the Internet. Many new start-ups benefit from proximity to the media, advertising and fashion industries, New York’s strengths. And as the city’s industry grows, entrepreneurs say, it is offsetting some of the traditional disadvantages of being outside Silicon Valley.

There is little talk of New York overtaking the Bay Area as the hub of the country’s technology industry. And the concept of New York as a real rival to Silicon Valley can make some Californian eyes start rolling.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: New York
KEYWORDS: newyork; siliconvalley; technology

1 posted on 05/28/2012 6:35:08 AM PDT by SeekAndFind
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To: SeekAndFind

FAREWELL, SILICON VALLEY Tech start-ups are gaining a media edge by moving to New York.
2 posted on 05/28/2012 6:36:18 AM PDT by SeekAndFind (bOTRT)
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To: SeekAndFind

Plus, if the regulatory burden isn’t high enough in California, New York has the highest taxes in the country.


3 posted on 05/28/2012 6:36:44 AM PDT by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
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To: coloradan

Exactly my thoughts. Move from one tax center to another. If they had any sense, they’d go to some place like Texas.


4 posted on 05/28/2012 6:44:10 AM PDT by Rocky (Obama is pure evil)
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To: coloradan

Good one. Was thinking same thing. If your business is Internet media, why the need for geographical proximity? Methinks they just like the nightlife.


5 posted on 05/28/2012 6:45:41 AM PDT by Mamzelle
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To: coloradan

Tax a little, tax a lot. IMHO, both Kallie and NY are taxalots. Both have high ideological costs, regulatory costs, tax costs and a cost of the soul in my book. Neither for me. If these entrepreneurs want to thrive, go somewhere else. Every entrepreneur can’t be a Google, Facebook (where they have to rip off IPO investors).........somebody has to pay the bills...it seems the big winners have already taken care of not having to have that burden.


6 posted on 05/28/2012 6:47:49 AM PDT by Gaffer
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To: Rocky

Bump!


7 posted on 05/28/2012 6:48:34 AM PDT by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one)
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To: Mamzelle
Maybe wearing jeans and hoodie and acting like because they have some smarts and a good idea it gives them the right to be a societal icon?
8 posted on 05/28/2012 6:50:13 AM PDT by Gaffer
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To: SeekAndFind

California kills you with taxes and regs and New York does too.

Why not relocate to a more tax friendly state?


9 posted on 05/28/2012 7:04:25 AM PDT by hattend (Firearms and ammunition...the only growing industries under the Obama regime.)
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To: hattend

Yeah, because Mississippi is just brimming with Internet successes.


10 posted on 05/28/2012 7:07:56 AM PDT by 9YearLurker
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To: 9YearLurker

It says Tech start-ups.

They can go anywhere.


11 posted on 05/28/2012 7:12:05 AM PDT by hattend (Firearms and ammunition...the only growing industries under the Obama regime.)
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To: hattend

Not really, not if you want to grow to any scale—then you need to be where the talent is, which is not generally in low-tax states. That’s why Silicon Valley isn’t in Mississippi.

And if these guys want to schmooze themselves into business relationships with the major media companies, there’s no better place to do that than NYC.


12 posted on 05/28/2012 7:16:46 AM PDT by 9YearLurker
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To: hattend
New Hampshire is full of high tech industries and has a highly educated work force.

Furthermore, there is no state income tax, no bottle deposits and you can hunt on Sundays.

13 posted on 05/28/2012 7:19:46 AM PDT by billorites (freepo ergo sum)
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To: SeekAndFind
New York Slimes touting NYC....how 'bout that?

Smart money (tech included) is on Texas.

14 posted on 05/28/2012 7:23:44 AM PDT by Jane Long (Soli Deo Gloria!)
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To: SeekAndFind

“New York Has Increasing Allure (Silicon Valley has a rival)”

If true, this challenges the presumption that these techies are so smart. Trading one over-regulated, tax-everything-in-sight venue for another. One without the balmy weather.


15 posted on 05/28/2012 7:25:45 AM PDT by RedElement
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To: hattend
They can go anywhere.

That usually means where they can get the best deal but a lot of these tech start ups end up crashing and costing us money in the end. We've seen an endless string of "green" tech industries do just fine in Michigan....for a while.
16 posted on 05/28/2012 7:41:48 AM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: SeekAndFind
Yeah, right. Because New York is so business-friendly.

Propaganda has to be a LITTLE believable.

17 posted on 05/28/2012 7:44:09 AM PDT by Lazamataz (People who resort to Godwin's Law are just like Hitler.)
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To: SeekAndFind

It’s cool to be in NY or CA when your company is a start up losing money every year. When you get the venture capitalists paid off and start to make money you build your manufacturing plant in China and customer support in India.


18 posted on 05/28/2012 8:13:33 AM PDT by Mike Darancette (Ineptocracy; the Obama way.)
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To: SeekAndFind

UHm noh....They .....don’t....


19 posted on 05/28/2012 8:16:32 AM PDT by Vendome (Don't take life so seriously, you won't live athrough it anyway)
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To: 9YearLurker; hattend

Bingo!

California, for all it taxation burdens, has unique advantages that I cannot foresee any other region except the East Coast replicating, and even then, I have my doubts.

The thing is, California has a wonderful lineup of interconnected high technology universities - Stanford, UCLA, USC, Berkeley, CalTech, etc., between the SF-LA region, all critical to high tech industry success. Combine that with the free California spirit (closely resembling my home country, Australia) where ‘business outfit’ means t-shirts, sandals and shorts, and the above-excellent weather, you have a captive environment where the people (graduates) are willing to pay for the compromise of ridiculously high taxes in order to live in such a professional and cultural climate.

I work with a company that makes advanced machines for the tech industry and they have a critical / urgent requirement for an embedded systems programmer / architect and the guy who will be interviewing candidates for the position is a buddy of mine. The company has centers in California, Texas and Georgia - and this is what he told me with a straight face - he tests candidates by asking them if they are willing to move out of California - and he tells me he won’t hire anyone who makes the mistake of answering in the affirmative because he considers anyone willing to do so to be, in his words, ‘stupid’.


20 posted on 05/28/2012 8:24:26 AM PDT by James C. Bennett (An Australian.)
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To: All

RTP (Research Triangle Park) in the Raleigh, Durham, Chapel Hill area of North Carolina has taken the place of Silicon Valley...


21 posted on 05/28/2012 8:43:51 AM PDT by JW1949
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To: JW1949

Taken the place of Silicon Valley?

LOL.


22 posted on 05/28/2012 8:57:51 AM PDT by James C. Bennett (An Australian.)
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To: James C. Bennett

Yep...More high tech businesses moving OUT of California and many moving INTO North Carolina....


23 posted on 05/28/2012 9:47:51 AM PDT by JW1949
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To: JW1949

I know a few of them - they still keep all their innovation in CA - the R&D centers stay behind in CA while manufacturing ops are moved to cheaper locales. What companies have found to be near-impossible is in replicating that high-innovation environment Silicon Valley and the larger SF-LA area possess. The missing key is what I mentioned in my comment earlier - the chain of high-tech universities of the likes of Stanford, CalTech, USC, UCLA...


24 posted on 05/28/2012 9:55:56 AM PDT by James C. Bennett (An Australian.)
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To: Mamzelle
Actually, I think it's the NYT trying to plant a meme in gullible people's minds: if you have to leave CA, then NY would be a good place for you to go. Of course nothing could be farther from the truth, but then again, this is the New York Times we're talking about here. What do you get when the painted ladies (of the evening) lose their colorful appeal? The Gray Lady.
25 posted on 05/28/2012 12:15:01 PM PDT by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
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To: hattend
Why not relocate to a more tax friendly state?

They shouldn't come south we are just a bunch of toothless rednecks down here. Better the Kalifornicators stay with their own kind in NYC.

26 posted on 05/28/2012 12:17:41 PM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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