
Seven Reasons Tech Start-Ups Are Setting Up Shop in New York - ssclafani
http://blogs.wsj.com/digits/2010/08/19/seven-reasons-tech-start-ups-are-setting-up-shop-in-new-york/
======
SkyMarshal
_"7) The anti-B.S. factor: Silicon Valley is a town where the tech industry
dominates the conversation. In sharp contrast, New York is home to many
industries so it’s difficult for an entrepreneur to get caught up in what the
investor Fred Wilson calls an “echo-chamber groupthink.” Bottom line —
entrepreneurs have to be creative and can’t get caught up in their bubble."_

I found this interesting, as my own echo-chamber-group-think radar is
sometimes set off by things I hear coming out of the Valley scene. For
example, some aspects of social media remind me of the original dotcom boom.

I don't live there though, so what does the HN crowd think about that,
especially Valley denizens?

As a side note there are clear exceptions, like Ycominbator's diverse
portfolio and wish list (<http://ycombinator.com/ideas.html>), among others.

~~~
whakojacko
Firstoff, Silicon Valley isn't a "town."

Secondly, I hate how articles (this one included) talk about new NY startups
and how they are so different from ones in the Bay. While there is definitely
some degree of truth to that, a lot of their examples focus on companies such
as Tumblr and Foursquare, which seem like complete stereotypes of the current
SV bubble: Consumer-oriented social platforms that are heavy on TechCrunch
posts and light on revenue. Not that the the Bay Area doesn't have lots of
those too, but if you want to talk about how "different" the NY startup scene
is I think 4Sq is a terrible example. Gilt is a much better example.

------
jasonjei
<rant>

Why is it that everyone is so concerned about where to start? Location is
important, but having a product out, or at least a prototype available, is
more important. You can do this anywhere, and when you get seed money or
funding later, you can move to somewhere glamorous. It's like moving to
Hollywood because you want to be an actor or writer.

If you're the coder--especially if you're the coding founder--you can make the
basic prototype first. Show people the value of your code then move after
you've convinced them it's golden. If you're not bringing money in or if you
don't have a product yet, moving to another place will just burn up money. You
want to build your product and maximize what you can do with it instead of
facing money troubles the minute you move.

</rant>

~~~
jseliger
_Why is it that everyone is so concerned about where to start?_

Because where you start appears to influence -- heavily -- where you end up,
or if you end up doing anything important. How many big tech companies began
and stayed in in Madison, WI, or in Florida? Almost none.

There's a whole field dedicated to examining why and how this happens:
economic geography. See here for a decent intro:
<http://eh.net/encyclopedia/article/patton.carpet> . The carpet industry in
Georgia is one such example; Internet startups in Silicon Valley are another;
movies in L.A. is a third; and so on.

 _It's like moving to Hollywood because you want to be an actor or writer._

Take a look at William Goldman's _Adventures in the Screen Trade_ , where he
says:

"I find Los Angeles a very difficult and potentially dangerous place to work
in, and I think anyone seriously contemplating a career as a screenwriter
ought to move there as soon as it's humanly or financially possible"
{Goldman@74}.

Later:

Screenwriters should go to L.A. despite the problems. As Goldman says, "To
begin with the practical: Simply put, they know things out there the rest of
the country doesn't, and they get that information first. The movie business
is a part of the fabric of life in Los Angeles, and that just isn't true
anywhere else. It is, if you will, in the air" {Goldman@80}.

People who ignore this ignore it at their own peril.

~~~
jasonjei
I think many of you are misinterpreting what I'm writing. I'm not discounting
the influence of a place like New York or San Francisco--there is much to gain
and great products are built in those cities, and your likelihood of success
increases. What I am warning is that I hear the stories of founders that move
to SF, don't have a product out, live off cash reserves, and months in to the
project still no viable product. There are some who seem to believe the
_inception_ of any product must begin there.

To the contrary, I actually encourage people to move to SF and NYC because of
the knowledge/experience/atmosphere. But you stand to have better chances when
you move _prepared_ than when you move to a big city without a plan.
Especially a city like NYC where starving, talented artists are a dime a
dozen. It's the capital of capitalism.

Moving to a city is a step you make when you are firmly committed to the idea.
Don't just move because you have an idea. Have your things in order. It's a
lot like fishing--just make sure you have your bait before you go. If you have
start worrying about lease, payroll, and so on from the very beginning, well,
it'll be tough. But if you have a direction, like a minimal amount of code
written already, you'll move into the big city much better prepared. Remember,
cities like SF and NYC are capitals of capitalism.

Before you quit you job and move to a big city, be prepared about the gravity
of such a decision. You'll need to commit to a lease. NYC leases are not cheap
if you aren't already there. You'll need to spend time to setup your
office/apartment (often the same). You're likely moving there to hire talent.
But if you start a project without a strong beginning, you'll be burning cash
--and a lot of it in a big city where wages and cost of living are higher.

There is no doubt about the economic influence of a place. But being in X
won't stop you from being successful. As long as you're driven, you will move
to Y as long as you have a product and a plan. Just my 2 cents.

------
joshklein
I assume this article was submitted for the closing argument, which is pure
gold:

"Not so fast…

Matt Mireles, the founder and CEO of the video transcription service
SpeakerText, started his company in his Harlem apartment but recently jumped
ship for the Valley. Mireles said he’s making the move because of a
“chokehold” he believes Wall Street has on technical talent in New York. In
his experience, entrepreneurs are stuck fighting over a few start-up-minded
developers.

That said, Mireles admits his long-term plan is to eventually return to New
York. “If I wanted to be where there are more hot girls and nightlife I
wouldn’t be in Mountainview,” Mireles said. “But I’m doing this [move to
California] so in five years time I can live in New York in a big pimped out
loft or something.”"

------
pmjoyce
Sort of off topic question but does anyone know why the second "t" character
in the last paragraph is rendering as a "†" (Dagger, U+2020)? Is this part of
a digital watermark or something?

 _"Matt Mireles, the founder and CEO of †he video transcription service
SpeakerText"_

edit: spelling

~~~
mansilla
Hilarious. I was just looking at the same thing and thinking of the Praetorian
Pi symbol in that epic film, "The Net"

------
alexbiz
One comment...Wall Street doesn't have a choke-hold on technical talent. For
instance, most (I'm confident to say above 90%) people recruited by banking
programs cannot write a single line of code. Excel macros don't count.

~~~
MediaSquirrel
Yeah, i think he misunderstood my point just slightly, which is really that
there's not enough serious dev talent that in NYC that actually wants to go
into startups. Wall Street is not the only cause, but is a major factor.

Ironically, I intro'd that reporter to 60% of the people in the story he
quoted, including Carter Cleveland and Cody Brown.

~~~
cageface
I've been keeping an eye on NYC job postings lately with the idea of switching
coasts but I haven't seen that many. What are some good ones that currently
need people?

~~~
dspeyer
There's always Google. The hiring never stops.

~~~
cageface
That's definitely an option but I'd much rather get in early on something new.

~~~
toddml
bit.ly is always looking for good people. Take a look at our jobs page, and
shoot us a resume if you think you qualify.

<http://bit.ly/jobs>

