New York's Internet industry continues to expand and offer an East Coast alternative to Silicon Valley. The city has become attractive enough to technology entrepreneurs that even a few West Coast-born start-ups are moving to the Big Apple. A New York Times report suggests the technology industry has transitioned from being simply a framework for computing to making consumer products and applications. Those who establish themselves in New York benefit from a proximity to the advertising, fashion and media industries.
It used to be nearly impossible to receive venture capital financing outside of Silicon Valley. Slowly, that is become less of a prohibitive barrier. According to a New York public policy organization report, nearly 500 start-ups in NYC received venture financing between 2007 and 2011. Overall, the number of venture capital agreements has grown 32 percent in the country's largest city in the past five years.
While the pull and potential for landing a partnership with major companies entices entrepreneurs to New York City, hiring remains one drawback. Silicon Valley continues to consistently have the most and best engineers around. Those in New York generally choose finance because of its more lucrative career path.
Starting a Business
As with all business start-ups, ventures in New York can encounter any number of complexities. The following are things to consider when beginning a business:
- State and federal taxes
- Intellectual property rights, including trademark and copyright licensing
- Liability concerns and insurance coverage
- Workers' benefits and compensation
- Business entity selection
The market for technology start-ups has improved in New York, but it still can remain a risky endeavor. Small- to medium-sized business start-up experts can help make sense of any lingering questions.
Source: The New York Times, "For Tech Start-ups, New York has Increasing Allure," Joshua Brustein, May 27, 2012