NYC’s Tech is Booming

When it comes to tech hotspots, New York City is rapidly solidifying itself as a central location where both young tech talent and experienced executives want to be.

Long known as the world’s financial epicenter, The Big Apple is now making its mark as the place to be for all things tech.? It has been amazing to watch NYC emerge from the pandemic over the last few years. The startup venture ecosystem in New York is vibrant right now.? From meet-ups, to VCs opening offices, to young talent, to the many emerging companies, New York City has come into its own as one of the top places to be for building a technology company. ??According to non-profit Tech:NYC, more than 10,000 tech companies now reside in the city, with a workforce of around 167,000 employees.? Last year, VCs invested $16.2 billion into NYC tech companies, which matched a record set in 2019.? Bloomberg reported the New York tech sector has grown the most this year since 2012—which is interesting considering the giant setbacks it incurred due to the pandemic.?

Big players have definitely doubled down on the city as of late.? The New York Times reported that last year Google spent $2.1 billion on the St. John’s Terminal building on Manhattan’s West Side with the intention to build a campus for its 12,000 New York employees.? When completed in mid-2023, the company will have more than 3.1 million square feet of office space, making it one of the largest leaseholders in the city.? “We’re optimistic and bullish on New York,” Google senior manager Angela Pinsky told The City. ?“We want New York to thrive and we have bet on that relationship.”

And where the companies go, the money follows.? Most of the largest VC firms now have offices in the city, including Sequoia and GGV.? Andreessen Horowitz’s COO lives in NYC full-time.? And of course my company, Thomson Reuters Ventures, decided to set up shop here as well.

If You Can Make it Here…

Why the shift?? I think it makes sense for a few reasons.? The most attributed reason is the untapped talent pool.? Talent is what drives the tech scene, and the diversity of New York is something that allows companies to thrive.? Engineers living outside of the Bay Area now don’t have to choose between a city they love and their job.? According to Forbes, Google intends to hire 2,000 new workers in the area over the next year.

The growth can also be attributed to an increased investment in fintech.? Given New York’s rich financial history, the marriage makes sense.? Over the last 20 years, Goldman Sachs has replaced cash equities traders with computer engineers and automated systems.? In 2018, engineers comprised a quarter of the company’s workforce.?

But it’s not just fintech companies that are making their marks.? Everything from techy retailers like Warby Parker and digital health like Spring Health are contributing.? New York is not just a financial hub—it’s a media hub, a fashion hub, a cultural hub.? The very fabric of its streets promotes a sort of tastemaker society that spurs innovation and progress.

On the Scene

For me, the most beneficial part about living and working in New York is the lifestyle.? Even in a more distributed world, NYC still offers some of the best culture and living experiences to have a meaningful life. Its surrounding suburbs—West Chester, Long Island, Bergen County in New Jersey—have some of the best school districts in the country and great neighborhoods for families.? Others agree with me.? “I chose to move to New York because it’s filled with arts and culture, diverse people, and a massive economic engine,” Craft Ventures partner Lainy Painter told Forbes.? “It’s a new experience and I love having opportunities to meet with East Coast founders for coffee in the morning or even a show at the Comedy Cellar at night.”

Plenty of VCs recognize the advantage of having space to host—and court—their East Coast partners. Forbes reported that Union Squares Ventures recently moved into a much larger office space so they could host events and meet-ups with tech founders.

This proliferation has resulted in lots of great goings-on that don’t require travel—event communities like the FirstMark Capital-organized Data Driven NYC or the NY Tech Week that just happened last month.

It has been amazing to watch NYC emerge from the pandemic in the way that it has. It has been even more interesting to watch how hybrid work is impacting professional and social trends. I am most excited to see how things continue to evolve as we head into a period of economic uncertainty, but one thing I know about New Yorkers:? we handle whatever comes our way, and we keep moving.