Yesterday’s post highlighted potential problems with the venture capital market. A report in today’s New York Times suggest those problems may not extend to the Big Apple:
The study, “New Tech City,” conducted by the Center for an Urban Future, concluded that the technology industry is growing faster in New York City than anywhere else in America and that the city now trails only Silicon Valley as a hub for the development of new technology companies. The study’s authors, Jonathan Bowles and David Giles, identified 486 technology companies that had been founded in the city since 2007 and determined that the financial crisis and the recession that followed did not slow the industry’s growth.
Mr. Bowles said the technology investors he interviewed agreed that in the last few years, New York had eclipsed the Boston area as the second-leading breeding ground for tech companies in the country. Silicon Valley, around San Jose, Calif., is still by far the dominant center of the industry, but New York was the only place where the number of deals to finance tech start-ups rose between 2007 and 2011, Mr. Bowles said.
The full story is here. This is very interesting news. It suggests New York is seeing a surge in its technology sector before Mayor Bloomberg’s tech campus comes on line. Maybe this is just the beginning of an eastward shift in the tech sector.