New York has been developing its position as a global startup ecosystem for well over 10 years. Recognised as the financial capital globally, New York resurgence as a significant startup ecosystem has been driven by capital injection and collaboration across the public, private and government sectors. Today, New York is at the forefront of information and consumer technology, diversity and a behemoth for attracting foreign companies entering the USA market.
Below is a summary of recognition for New York’s ecosystem over the past 12 months.
1. New York was recognised as #1 location globally for women entrepreneurs/business owners (Dell Entrepreneurs Cities Index 2016). This support for women entrepreneurs was validated by the 2017 Startup Genome report, where 19% of all startup’s are founded by women, compared with 16% globally. NYC Small Business Services has dedicated resources over the past 10 years to research, implement and monitor relevant programs for women entrepreneurs and minorities, creating over 200,000 jobs and contributing $50bn in annual sales. (Refer my previous article: “Supporting Women Entrepreneurs: A Tale of Two Cities.”)
2. The 2017 Startup Genome Report ranked New York the #2 startup ecosystem globally, highlighting that approximately 6,800 – 7,300 tech startup’s are active. Whilst traditional industries of Financial Services, Luxury Retail, Media/Advertising continue to dominate, there has been recent emergence of “unicorns” in industries such as Hospitality (Blue Apron $2bn), Shared Office Solutions (WeWork $10bn), Healthcare (Zocdoc $1.8bn), E-commerce (Etsy $3.5bn), to name a few. Further, New York was named #1 “Best Smart City” globally in 2016 for its cutting-edge initiatives and new technologies to resolve urban challenges.
3. New York has the highest concentration of customers. The 2017 Startup Genome report highlighted that for many of the startup success stories, New York has been the #1 destination for entering the USA market. “At the end of the day, it all comes down to customers. If you have customers, you can raise capital — or you may not need any — and New York has the single largest concentration of customers anywhere in the world.” Avi Savar, Managing Partner and CEO at Dreamit.
4. New York’s central administration continues to develop comprehensive programs to attract and support foreign companies. Access to initiatives such as special visa’s, tax credits and dedicated events facilitate the pathway to success. Recent implementation of wifi and mobile networks on the subway means companies are now always connected.
5. Approximately 20,000 Australian’s live in New York. It is a city which welcomes foreigners, and particularly Australian’s who have a reputation for hard work.
New York can be tough to break into, but the rewards of success are immense. A well defined “go-USA” strategy, combined with leveraging programs available to foreign companies, means that New York is now more accessible than ever.
(If your company – Startup or Startout – is considering the USA, first and foremost, consider New York. FD Global Connections specialises in working with Australian companies to prepare for, and launch, in New York. e:firstname.lastname@example.org)