New York City start-ups have emerged as leaders in industries that utilize mobile and internet technologies, a key development that positions the city for future tech growth the Center for Urban Future says in a report released today. The report examines New York City’s quickly-growing tech sector – fueled by investments from both the government and private sectors and hundreds of budding start-ups – and focuses specifically on those companies that are empowered by the evolution of the Internet and mobile platforms.
Since 2007 over 1,000 digital start-ups have launched in New York City, many of which are focused on applying technology to already-established industries such as healthcare, advertising and finance. Of those, 486 digital start-ups have received angel, seed or venture capital funding. Venture capital (VC) investment in New York City start-ups increased 32 percent from 2007 to 2011, the period where VC investment decreased an average of 11 percent across the U.S. The Center for Urban Future (CUF) reports the surge in New York City tech start-ups can be attributed to the improved entrepreneurial tech ecosystem; locally-based network of angel investors and venture capitalists, entrepreneurship accelerators, incubators and co-working spaces and a talented pool of workers. The CUF also credits consumers’ increased use of the Internet and mobile technologies for creating the rise in demand for companies that create content, sell products and provide services online – key strengths New York City offers.
The Center for an Urban Future is “an NYC-based policy institute dedicated to highlighting the critical opportunities and challenges facing New York and other cities, and providing fresh ideas and workable solutions to policymakers.” The report was funded by AT&T New York and the Association for a Better New York (ABNY). The full report can be read here.