Seven Reasons Tech Start-Ups Are Setting Up Shop in New York
When Carter Cleveland, the CEO of the art-trading website Art.sy, moved his fledgling company from Palo Alto, Calif., to New York City he left behind arguably the best place to start a tech business in the U.S.
Home to giants like Facebook, Google (GOOG), Apple (AAPL), Intel (INTC) and eBay (EBAY), Silicon Valley is well known as the Mecca for high-tech companies – and entrepreneurs hoping to start one. One third of US-based venture capital investment happens in the Valley, according to PriceWaterhouse Coopers and the National Venture Capital Association. By Cleveland’s own admission, he “couldn’t go into a cafe without hearing pitches” in San Francisco.
So why go east? A recent Princeton grad, Cleveland said he left primarily because of his customers. Art.sy is an online trading post for fine art and, according to Cleveland, over half of his market is in New York City. But Cleveland added that location isn’t everything. New York’s tech scene is booming, and Cleveland wanted to join the party.
“Palo Alto is like Google,” he explained. “Big and established. New York City is like Foursquare. Not as big but tons of hype. It’s going through a growth period and very exciting.”