What makes NYC a unique tech hub?

This week is NY Tech Week. While the events take place in various parts of NYC within one week, the tech hub that is NYC has been around for a long time. Many years ago, it used to be the case that startups go to the West Coast to raise money first. Now, startups stop in NYC as either the first or second stop. Beyond fundraising, in my view, NYC in the best place for startups to "get tough and grow up." Here are the reasons:

  • NYC is one of the most competitive market - recruiting, enterprise selling, fundraising. People are competitive and work very hard in NYC, otherwise they can's survive and succeed. Startups learn to hustle here at a different level.
  • New Yorkers are direct. There is no "beating around the bushes" because there is no time. Startups have to get used to this manner of communication.
  • NYC moves fast, and it is nonstop. People walk fast, talk fast, and act fast when they are ready. Startups wanting to plant a flag in the market need to act the same way and understand the culture. No one is waiting. Everyone is moving. Literally and figuratively.
  • NYC has a lot of money here. It is the capital of capital formation of all forms and structures. For the most part, in my view, the sophistication of underwriting investments is unparalleled - up and down the capital stack.
  • NYC has the industries - media, CPG, pharmaceutical, insurance, financial services, healthcare, tech, education. It is a great place for startups to uncover and refine use cases and value proposition.

If a startup is building a consumer business and can make it in NYC, it can make it anywhere. Consumers in NYC are willing to pay higher prices, and they expect the best product and service.

If the startup is building enterprise solutions and can get a handful of marquee clients in NYC and serve them well, it is on its way to make it in other markets and go big.

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